PPHE Hotel Group, the London Stock Exchange-listed operator of the Park Plaza and art’otel brands, has completed the sale of its development site on the west side of Manhattan, near Hudson Yards. The transaction, agreed with a US real estate developer whose identity has not been disclosed, values the freehold of the plot at €28.7m. The deal was originally agreed in February 2026.
Of the disposal proceeds, €5.8m has been used to repay debt secured against the site, with the balance redeployed across the group’s operations. PPHE had stated in February that it intended to channel these funds towards its core target regions in Europe.
An art’otel project scrapped for regulatory reasons
PPHE had acquired the site in 2019 for €36m, as part of a 50/50 joint venture with property developer Largo 542 West 29th Street Partners LLC. The group had planned to build a property under its art’otel brand, a contemporary art- and design-led hotel range already present in London, Amsterdam and Zagreb.
In February 2026, PPHE stated that regulatory changes had rendered hotel development on the site unviable. The company had then announced its intention to dispose of the asset and redirect the freed-up capital towards its European portfolio, rather than maintain a non-operational land position in the United States.
A deliberate asset-rotation strategy
The disposal forms part of the active capital management approach PPHE has pursued repeatedly in recent years, alternating between disposals of non-strategic assets and growth transactions in its core target markets. The group had, for instance, recently completed the buyback of the freehold of the Park Plaza London Waterloo for £147.9m, nine years after selling the rights as part of a sale-and-leaseback transaction.
PPHE Hotel Group holds a portfolio valued at £2.2bn, according to a valuation by Savills and Zagreb nekretnine Ltd as at 31 December 2025. The group holds an exclusive, perpetual licence from Radisson Hotel Group to develop and operate Park Plaza-branded hotels across Europe, the Middle East and Africa, while it owns the art’otel brand outright.
Shareholder situation under close watch
The exit from the New York asset comes as the group’s founders and long-standing shareholders, Eli Papouchado and Boris Ivesha, who together hold around 44% of the share capital, have confirmed they are in preliminary discussions over possible strategic options concerning their stake, with no formal offer having been made at this stage.
PPHE Hotel Group shares were trading at 1,598 pence on Friday in London, up 1.5% on the day but down 3.9% over twelve months.
At a glance by The Hospitality Tribune
PPHE Hotel Group completes sale of Manhattan development site
Sale price: USD 33.5 million (approx. €28.7 million) for the freehold
USD 6.8 million (approx. €5.8 million) used to repay site-related debt
Site acquired in 2019 for USD 42 million (approx. €36 million) via a 50/50 joint venture with Largo 542 West 29th Street Partners LLC
Planned art’otel project scrapped in February 2026 due to regulatory changes affecting hotel viability
Remaining proceeds to be redeployed into PPHE’s core European markets
Share price: 1,598.00 pence, up 1.5% on the day, down 3.9% year-on-year
