PPHE Hotel Group is set to regain full ownership of the Park Plaza London Waterloo after agreeing to buy back the hotel’s freehold for £147.9 million. The transaction reverses the company’s 2017 sale‑and‑leaseback and forms part of its strategy to strengthen freehold control across its portfolio.

The acquisition covers the 494‑room hotel and will be financed through a new £136.5 million debt facility secured against the property, with the remainder funded from existing cash. PPHE expects completion in the coming months once the financing terms are finalised.

The Park Plaza London Waterloo was sold in 2017 for £161.5 million shortly after its development and opening. PPHE simultaneously entered into a 199‑year leaseback with an initial annual rent of £5.6 million. Due to RPI‑linked increases, the rent has risen to approximately £7.3 million per year.

By repurchasing the freehold, PPHE removes long‑term exposure to rising inflation‑linked rent obligations and increases strategic control over the hotel. The move provides greater scope for future refurbishment, redevelopment opportunities, and more flexible financing options across the group’s portfolio.

The company positions the buyback as part of its wider capital recycling approach. The original 2017 disposal released capital to support ongoing development projects, while the reacquisition represents the reinvestment of capital into a mature, stabilised asset.

Market reaction to the announcement was negative, with PPHE’s share price falling between 9% and 12% during the trading day. The decline reflects investor concerns around higher leverage and the scale of the transaction, although the company continues to align the decision with its long‑term asset strategy.