Completion of acquisition of two hotels in Berlin

RNS Number : 3238I

PPHE Hotel Group Limited

01 July 2013

 



1 July 2013

PPHE Hotel Group Limited

(the "Company")

Completion of acquisition of two hotels in Berlin

Further to the announcement dated 18 April 2013, the Company is pleased to announce that certain of its subsidiaries have today completed the acquisition of the freehold interests in two hotels in Berlin which the group currently leases and manages, namely the art'otel berlin mitte and the art'otel berlin kudamm, together with the associated inventories, for a total consideration of €17.5 million (exclusive of VAT of €0.31 million on the inventories). As previously announced, on completion the seller paid to the group €2.0 million, which will be used for renovation works on the hotels.

The Company is currently in negotiation with a prospective joint venture partner in respect of the two hotels. The prospective joint venture partner has advanced a loan for its proportion of what would be the equity in the 50:50 joint venture.  The joint venture is conditional on agreement of documentation and bank consent. If it is not concluded by 31 July 2013, the loan will become repayable.

The consideration for the acquisition of the properties was funded by a €12.5 million 10-year term loan from Deutsche Hypothekenbank secured on the properties and guaranteed by the Company, the loan from the prospective joint venture partner, and the group's existing cash resources.  

Enquiries:

PPHE Hotel Group Limited

Chen Moravsky, Chief Financial Officer                                        Tel: [phone]

Hudson Sandler                                                                         Tel: [phone]

Wendy Baker / Kate Hoare

Note to editors:

PPHE Hotel Group Limited (formerly Park Plaza Hotels Limited) is a Guernsey registered company, which, through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops 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 owned 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. The group's portfolio of owned, leased, managed and franchised hotels comprises 38 hotels offering a total of more than 8,200 rooms. Its development pipeline includes four new hotels, which together are expected to add nearly 800 rooms to the portfolio by the end of 2015.

Our company:

www.pphe.com                                                                                                  

Our brands:

www.parkplaza.com

www.artotels.com

www.arenaturist.com

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

 

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