Acquisition of freehold of two hotels in Germany

RNS Number : 3881R

PPHE Hotel Group Limited

09 December 2016

 

 9 December 2016

PPHE Hotel Group Limited
("PPHE Hotel Group" or the "Company" or the "Group")

Acquisition of freehold of art'otel cologne and art'otel berlin kudamm in Germany

PPHE Hotel Group, which owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities, regional centres and select resort destinations, predominantly in Europe, is pleased to announce that Arenaturist d.d. (in which the Group has a controlling interest), via its wholly owned subsidiaries ("the Purchasers"), has entered into an agreement to acquire the freehold interests in two hotels in Germany. 

art'otel cologne and art'otel berlin kudamm (formerly known as art'otel berlin city center west), which the Group currently leases and manages, are located in Berlin, Germany are being acquired from a third party for an aggregate €54,500,000 million net of any applicable VAT (of which €2,329,000 is on account of Fixture, Fitting and Equipment payable by the operating companies of the hotels which are owned by PPHE Hotel Group) (the "Acquisition").  

The Acquisition is subject to receiving local authority consent. Funding arrangements for the Acquisition are currently being negotiated.

This Acquisition is in line with the Company's strategic intention to integrate its hotels and hotel operations in Central and Eastern Europe into Arenaturist.  This is the first step towards developing Arenaturist into a leading Central and Eastern European leisure and hospitality company with a business model that includes owning and managing its own assets and those of others, primarily under the Park Plaza brand.

art'otel cologne is located on the Rheinaudocks in the centre of Cologne. The newbuild hotel opened in 2010 and offers 218 guest rooms, a bar, restaurant, several meeting rooms and a sauna. The signature artist for this art'otel is the Korean artist SEO.

art'otel berlin kudamm is a 152 room hotel located in Berlin's Charlottenburg area, just minutes away from the Kurfürstendamm and has been operated by PPHE Hotel Group since 2001. Facilities include a bar, restaurant, several meeting rooms, a sauna and gym. The hotel is dedicated to Andy Warhol, with over 250 art pieces and photos taken by his best friend, Christoper Makos.   

Boris Ivesha, President & Chief Executive Officer of the Company, said:

"The Board is delighted with the acquisition of the freeholds of these two hotels in Cologne and Berlin which we have managed under our wholly owned art'otel brand for a number of years. The Group's portfolio in Germany consists of eight hotels and this latest acquisition highlights our commitment to our presence in gateway cities in Europe."

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries

PPHE Hotel Group Limited
Chen Moravsky, Deputy Chief Executive Officer and Chief Financial Officer	Tel: [phone]
Hudson Sandler LLP
Wendy Baker / Sophie Lister	Tel: [phone]

Notes to editors

PPHE Hotel Group Limited is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full service upscale and lifestyle hotels in major gateway cities, regional centres and select resort destinations, 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 the Group.

PPHE Hotel Group has a controlling interest (65.63% of the share capital) in Arenaturist d.d., one of Croatia's leading hospitality companies, which is listed on the Official Market of the Zagreb Stock Exchange.  

The portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of nearly 8,400 rooms. The development pipeline includes four new hotel projects and one hotel extension and reconfiguration. These developments are expected to add over 800 rooms to our portfolio by the end of 2016 and an additional 500 rooms by the end of 2019.

Our Company:
www.pphe.com

Our Hotel Brands:
www.parkplaza.com
www.artotels.com
www.arenaturist.com

For images and logos visit www.vfmii.com/parkplaza

 

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