Acquisition of Loan

RNS Number : 0777Q

PPHE Hotel Group Limited

12 June 2015

 

12 June 2015

PPHE Hotel Group Limited

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

Acquisition of Loan

PPHE Hotel Group Limited, which together with its subsidiaries (the "Group"), owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, is pleased to announce that it has acquired a loan made to one of its subsidiaries, Katmandu Limited ("Katmandu").

Acquisition of loan to Katmandu

In August 2010 the Group acquired the long leasehold interest in the Park Plaza Nottingham hotel which included the assumption of £5.9 million of debt originally owed by Katmandu to National Westminster Bank PLC secured on the long leasehold interest ("the Loan"). The Loan carried fixed interest until 2027 at 6.84 per cent. (plus mandatory costs)  per annum and was repayable in 2027.

The Group has now acquired the Loan and cancelled an interest rate swap agreement associated with the Loan (which as at today's date has an aggregate nominal value of £7.6 million). The total consideration for the Loan and cancellation of the associated interest rate swap is £5.5 million.

It is anticipated that the transaction will not have a significant impact on the Group's profit. 

Enquiries:

PPHE Hotel Group Limited
Boris Ivesha, President & Chief Executive Officer	Tel: [phone]
Chen Moravsky, Deputy Chief Executive Officer & Chief Financial Officer	Tel: [phone]
Hudson Sandler Financial Public Relations
Wendy Baker / Kate Matthews	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, 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 Company has an exclusive licence from Carlson^SM, 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. The Group has a minority ownership interest in the Arenaturist group, one of Croatia's leading hospitality companies.

Our portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of more than 8,300 rooms. Our development pipeline includes four new hotel projects, one hotel extension and reconfiguration and two rebranding projects. These developments are expected to add over 1,000 rooms to our portfolio by the end of 2016 and an additional 352 rooms by the end of 2019.

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

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

Forward-looking statements

This interim management statement may contain certain "forward-looking statements" which reflect the Company's and/or the directors' current views with respect to financial performance, business strategy and future plans, both with respect to the Group and the sectors and industries in which the Group operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue" and similar statements are of a future or forward-looking nature. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Group's actual results to differ materially from those indicated in these statements. Any forward-looking statements in this interim management statement reflect the Group's current views with respect to future events and are subject to risks, uncertainties and assumptions relating to the Group's operations, results of operations and growth strategy. These forward-looking statements speak only as of the date of this interim management statement. Subject to any legal or regulatory obligations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to the Group or individuals acting on behalf of the Group are expressly qualified in their entirety by this paragraph. Nothing in this publication should be considered as a profit forecast.

 

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