18 June 2012
PPHE HOTEL GROUP LIMITED
("PPHE Hotel Group" or "the Company")
COMPLETION OF ACQUISITION AND SIMULTANEOUS SALE AND LEASEBACK
628 WESTERN AVENUE, PARK ROYAL, LONDON, W3
Further to the Company's announcement on 12 July 2011, PPHE Hotel Group is pleased to announce that one of its wholly owned subsidiaries has completed the purchase of the freehold property at 628 Western Avenue, Park Royal, London W3 (the "Site") which is a development site on one of the main thoroughfares into London, for £6 million.
Simultaneously, PPHE Hotel Group has completed the sale of the Site at a price of £7 million and the leaseback of the Site at an initial rent of £306,500 per year (the "Sale and Leaseback"). Under the terms of the Sale and Leaseback, PPHE Hotel Group is required to procure the construction of a 158-162 room hotel on the Site.
£4 million of the consideration for the Sale and Leaseback will be held in escrow pending inter alia the receipt of planning permission to construct a new hotel on the Site. The balance of £3 million has been paid to PPHE Hotel Group.
PPHE Hotel Group has applied for planning permission to construct a new hotel at the front of the Site. If planning permission is not obtained by 14 December 2012, PPHE Hotel Group is required to repurchase the Site at an effective price of approximately £7.6 million.
Boris Ivesha, President and Chief Executive Officer of PPHE Hotel Group, said:
"This is an exciting opportunity to further expand our UK hotel portfolio. The two acre site is a high profile, gateway site with prime frontage onto the A40, a major arterial route into Central London. With excellent transport links into Central London and its proximity to Wembley Stadium, Westfield Shopping Centre and Heathrow Airport to the west of London, the Site is ideally located to serve hotel guests travelling in and out of West London."
PPHE Hotel Group Limited
Chen Moravsky, Chief Financial Officer
Tel: +31 (0)20 717 8603
Tel: +44 (0)20 7796 4133
Wendy Baker / George Parker
Note to editors:
PPHE Hotel Group Limited (formerly Park Plaza Hotels Limited) owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe. The majority of the Group's hotels operate under two distinct brands, Park Plaza® Hotels & Resorts and art'otel®.
The group has an exclusive licence from Carlson, a global privately held hospitality and travel company, to develop and operate Park Plaza® Hotels & Resorts in Europe, the Middle East and Africa. The art'otel® brand is fully owned by PPHE Hotel Group and it has a minority ownership interest in the Arenaturist group, one of Croatia's leading hospitality companies.
Through its strategic partnership with Carlson, PPHE Hotel Group has access to their powerful reservation and distribution system, loyalty programmes such as Club CarlsonSM for guests and Look To BookSM for travel agents, 23 airline partnerships and cross-selling opportunities.
The portfolio of owned, leased, managed and franchised hotels comprises 39 hotels offering a total of 8,340 rooms. The development pipeline includes three new hotels and two mixed-use developments, which together are expected to add approximately a further 900 rooms to the portfolio by the end of 2014.
PPHE Hotel Group's shares are admitted to trading on the main list of the LSE (Standard Listing).
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