Latest news: PPHE deal in London; Choice marketing move; new debt fund

PPHE grows in London. London-based owner-operator PPHE Hotel Group has been granted planning permission for a mixed-use hotel-led development in London’s South Bank area. PPHE will bring a 15-storey design-led mid-scale concept to the market comprising up to 186 rooms as well as two floors of office and light industrial floorspace, activated by a flexible use ground floor public space featuring an all-day dining bar and cafe. The building’s design will focus heavily on sustainability, transforming a former brownfield site, and targeting a BREEAM ‘Excellent’ environmental accreditation. PPHE purchased the site for £12m in 2019 and it is currently working on detailed designs for the project.

Choice marketing plan. Choice Hotels has tapped two creative and digital media buying agencies, 72andSunny and dentsu X, to help personalize customer messaging “in the most salient location at the optimal time.” The two agencies will focus on driving direct bookings for Choice brands and expand its marketing beyond traditional TV and online ads further into social media, podcasts and other media channels.

New debt fund closes. Miami-based BridgeInvest has closed a $670 million equity fund, its fourth vintage specialty credit fund. Fund IV capital deployment will target the multifamily, industrial, hospitality and retail sectors, with a focus on providing senior-secured financing to existing and transitional assets ranging from $20 million to $150 million. Fund IV marks the company’s largest fundraise to date from a diverse pool of limited partners. BridgeInvest aims to close up to $1.2 billion in transactions over the next 24 months across its lending programs.

Another Avani for Bangkok. Minor Hotels, Bangkok, is set to expand its footprint in Thailand with the opening of the 402-room Avani Ratchada Bangkok Hotel on September 1, 2024. This new addition, in partnership with Thai real estate developer CP LAND Public Co. Ltd. marks the 12th Avani hotel in Thailand and the third in Bangkok. The hotel, formerly known as Grand Fortune Hotel Bangkok, has undergone extensive renovations.

New funding for Oyo. India-based budget brand Oyo has raised approximately $174 million in a Series G funding round. Patient Capital, which is run by Oyo Founder Ritesh Agarwal, InCred Wealth and J&A Partners all contributed to the round. Agarwal said the additional capital will help “future growth efforts.” Oyo attempted to go public in India in late 2021 after raising more than $7 million as part of a Series F funding round. In 2023, Oyo withdrew and refiled its IPO documentation only to withdraw it again in May.

Cross grows in Bangkok. Cross Hotels & Resorts has signed HMAs with Yutthaporn Development, for the 221-room Cross Vibe Bangkok Srinakarin and the 64-suite Lumen Bangkok Srinakarin.

Hostel developer adds in Budapest. European hostel developer Safestay PLC has acquired a leasehold city center site in Budapest, Hungary, through its wholly owned subsidiary Safestay Hungary kft. Following refurbishment, the acquisition will add approximately 150 beds to Safestay’s existing portfolio, which numbers more than 3,580 beds across 18 sites, excluding the group’s recently announced Brighton and Calpe Costa Blanca locations. Safestay Hungary kft has signed a five-year lease for the property from Curzon Capital kft and under the terms of the agreement has the option to extend this over two additional five-year terms. Once operational, the Budapest hostel is expected to contribute estimated revenue of approximately €350,000 and EBITDA after rent of €50,000 to the group during its first year of operation. This is expected to increase as the site matures.