PPHE Hotel Group has announced plans to develop a “predominantly subterranean” hotel on Vauxhall Bridge Road close to London Victoria station.
The group operates the existing Park Plaza Victoria London, and has been granted planning approval to convert 6,500 sqm of the property into a new 179-room hotel – the majority of the space being situated underground.
When completed PPHE will operate a dual-branded property on the site, with the subterranean hotel trading alongside the 299-room Park Plaza Victoria London, with its own separate and dedicated entrance.
PPHE said that “Through this forward-thinking approach of converting a subterranean space, the Group will be tapping into a growing segment of the market, which has seen particular traction in London”.
The group added that “Given that development will be utilising the existing structure, and land does not need to be acquired, the Group expects to significantly increase the asset valuation and yield upon completion”.
The brand has yet to be confirmed for the new hotel, which will operate as a midscale lifestyle property.
The Zedwell Tottenham Court Road Hotel is marketed as “London’s first underground hotel”, while a large portion of The Londoner on Leicester Square is housed beneath ground level.
Commenting on the news Boris Ivesha, president and chief executive officer, PPHE Hotel Group, said:
“This is an exciting new project utilising an existing asset and operations in a sought-after location to maximum effect. Situated in the heart of the city, this 179-room property will further enhance our London portfolio, broaden our accommodation proposition, enabling us to tap into a new guest demographic, whilst maximising returns.
The strategy here is consistent with the Group’s longstanding approach to building long-term shareholder value through the measured use of its balance sheet and tactical capital investment.”
PPHE also operates the art’otel brand, with a second London property set to open in Hoxton next year.
