Park Plaza in JV with Aldersgate for new hotel development in London

14 March 2008 - Forbes.com

Park Plaza Hotels Ltd said it entered into a joint venture with Aldersgate Investments Ltd, the property vehicle of the Reuben Brothers, to develop a new apart-hotel under the 'art'otel' brand in Hoxton, on the edge of the City of London.

The hotel operator said that under the joint venture, it will own 50 pct of Aspirations Ltd through its newly-formed Apex Holdings (UK) Ltd unit. Aspirations is the company that owns the site on which the hotel is proposed to be developed.

Apex will pay about 3 mln stg in cash for the 50 pct stake, it said.

Apex will also advance a loan of about 8 mln stg to Aspirations, which will be used towards the partial repayment of a loan made to Aspirations by Aldersgate.

Following completion Aspirations will be indebted to each of its shareholders for the same amount and on the same terms, the company said.