PPHE Hotel Group investment acquires Serbian asset

Hospitality and real estate group PPHE Hotel has acquired a stake in 88 Rooms Hotel via its majority shareholding in Arena Hospitality.

Arena Hospitality snapped up the 88 room hotel in the Serbian capital of Belgrade for a total of HRK 7m (£5.5m) on Friday, marking its entry into a new market.

The hotel, currently owned by MK Aviation Services, is located near to Belgrade's historic old town district and, in addition to the rooms, contains a restaurant, bar, conference room and fitness facilities.

PPHE said completion of the transaction was subject to certain steps and conditions to be fulfilled, with Arena expecting the necessary steps to acquire full ownership of the hotel to be completed by the end of 2019.

President and chief executive Boris Ivesha said: "We are delighted to see Arena flourishing within the markets it operates in.

"It is one of the most dynamic hospitality groups in Central and Eastern Europe, operating iconic venues and we look forward to continuing its momentum as it invests in its existing portfolio and expands into new territories."

As of 1350 BST, PPHE shares were untraded at 1,670p.