PPHE Hotel Group announce that it has agreed terms to enter into a joint venture with Clal Insurance ("Clal"), one of Israel's leading insurance and long-term savings companies, in respect of two of the Group's prime London assets. PPHE will receive a cash consideration of £113.7 million as part of this transaction, enabling the Group to pursue new opportunities to accelerate growth. On completion of the transaction, Clal will become a minority partner and owner of 49% of the shares in one joint venture company ("JVCo") holding indirectly the real estate and operations of both the 646-room Park Plaza London Riverbank ("Riverbank") and the 343-room art'otel london hoxton development project ("Hoxton"), which is scheduled to open in 2024.

The Group remains the majority owner of the hotels by retaining a 51% holding in JVCo and through its management company has secured a 20-year hotel management agreement in respect of both hotels.