PPHE Hotel Group has secured funding for the long-awaited Art’otel London Hoxton on the capital’s Old Street.

The group said it had “entered into a syndicated facility agreement arranged by Bank Hapoalim B.M. for a facility of up to £180 million” to fund the development.

Business Traveller first reported on plans for the hotel way back in 2008, but the property has been subject to a number of delays.

PPHE Hotel Group received planning consent by Hackney Council for an improved and final development scheme last year.

At the time the group said that the mixed-use property would comprise a total of 27 floors, with five floors of office space, 17 floors of hotel rooms, and five floors dedicated to facilities including a gym, swimming pool, wellness facilities, an art gallery, destination restaurant, bar, and a 24th floor auditorium and event space.

There are Art’otel properties in Amsterdam, Berlin, Budapest and Cologne, with a 160-room hotel set to open within London’s Battersea Power Station development in 2022.

Commenting on the latest development Boris Ivesha, president and chief executive officer, PPHE said:

“We are pleased to have secured funding to develop Art’otel London Hoxton with Bank Hapoalim BM which has been a long standing partner of the Group funding several of our other key properties, including Park Plaza Westminster Bridge London which opened in 2010.

“We believe the project has the potential to deliver attractive risk-adjusted returns for shareholders whilst further expanding our Art’otel brand.”