Heterogeneous cellular networks (HCNs) usually exhibit spatial separation amongst base stations (BSs) of different types (termed tiers in this paper). For instance, operators will usually not deploy a picocell in close proximity to a macrocell, thus inducing separation amongst the locations of pico and macrocells. This separation has recently been captured by modeling the small cell locations by a Poisson Hole Process (PHP) with the hole centers being the locations of the macrocells. Due to the presence of exclusion zones, the analysis of the resulting model is significantly more complex compared to the more popular Poisson Point Process (PPP) based models. In this paper, we derive a tight bound on the distribution of the distance of a typical user to the closest point of a PHP. Since the exact distribution of this distance is not known, it is often approximated in the literature. For this model, we then provide tight characterization of the downlink coverage probability for a typical user in a two-tier closed-access HCN under two cases: (i) typical user is served by the closest macrocell, and (ii) typical user is served by its closest small cell. The proposed approach can be extended to analyze other relevant cases of interest, e.g., coverage in a PHP-based open access HCN.