New Management Contracts

Park Plaza Hotels Limited
17 April 2008




                                                                   17 April 2008

                           PARK PLAZA HOTELS LIMITED


                 New management contracts for hotels in Russia


Park Plaza Hotels Limited, the owner, operator and franchisor of hotels in
Europe, the Middle East and North Africa, announces that its wholly-owned
subsidiary, Park Plaza Hotels Europe B.V. (PPHE), has entered into an agreement
with Ferens Management Limited (Ferens) to operate up to 20 new hotels (with a
total of approximately 3,500 to 4,000 rooms) in Russia under 20-year management
contracts.  PPHE will also provide technical consulting services, including
assisting in the identification and planning of the hotels.

Over the next four years, Ferens intends to establish a chain of 15 to 20 hotels
under the Park Plaza brand.  The hotels will be either new buildings or
developments of existing properties.  The hotels will be located in major
Russian cities, with populations of over 500,000, and are intended to include
several hotels in each of Moscow and St. Petersburg, the principal destinations
for business travellers in Russia.

Ferens is currently in exclusive negotiations in relation to two properties and
it is also actively reviewing a number of existing hotels that can be
refurbished to meet Park Plaza brand standards. The build-out and development of
the hotels is expected to be completed by the end of 2012.

The number of foreign visitors to Moscow has grown consistently over the last
few years, with major international source markets being the European Union and
the CIS countries.  In 2006, Moscow had 3.73 million foreign visitors, more than
double the 2001 figure.  As many as 80% of hotel stays in Moscow are estimated
to be business travellers.  St. Petersburg saw over 3 million foreign visitors
in 2006, an increase of 10% over the previous year.  The city administration is
aiming to make St. Petersburg a leading European travel destination and to
attract as many as 5 million foreign visitors by 2010.  Principal source markets
are Finland and the Baltic countries, the USA, Germany, France, the UK and
Italy.  In addition, the number of domestic tourists, particularly from Moscow,
has risen steadily in recent years.

Hotel supply in Moscow and St. Petersburg can be divided into two broad
categories:  properties of modern standards and Soviet-style hotels, mostly
dating back to the period between 1950 and 1989 which have variable standards.
Overall, there is a shortage of modern hotels in the mid-to-upscale segment.

Ferens is owned by Renova StroyGroup (RSG), part of the Renova Group of
Companies, a leading Russian privately-owned diversified business group.  RSG
has a leading position in the Russian development market, investing in land
development, public utilities networks and residential and commercial real
estate development in different regions of Russia.

Boris Ivesha, Chief Executive Officer of Park Plaza said: 'We are delighted to
have signed this contract with the Renova StroyGroup, who have a strong
reputation for real estate development across Russia.  Russia is becoming an
increasingly popular destination for both business and leisure travellers who we
believe are driving demand for quality hotel rooms.  This agreement, which
should over the next four years add approximately 4,000 rooms to our portfolio,
gives us the opportunity to expand the Park Plaza brand and work with a
reputable local partner to develop modern hotels in the mid-to-upscale segment
of the market.'

                            www.parkplazahotels.net


Enquiries:

Park Plaza

Boris Ivesha                     Tel: [phone]

Chen Moravsky                    Tel: [phone]


Hudson Sandler

Wendy Baker                      Tel: [phone]



Notes to Editors

The Park Plaza group is owner, operator and franchisor of hotels in Europe, the
Middle East and Africa.  The majority of the group's hotels operate under the
Park Plaza Hotels & Resorts brand (part of Carlson Hotels Worldwide), over which
the group has exclusive rights in 56 countries in EMEA or art'otel, a brand to
which the Group has exclusive worldwide rights.  Park Plaza Hotels also manages
the luxury all-suite Plaza on the River - Club and Residence, London.

Through its strategic partnership with Carlson, one of the world's largest
travel and hospitality companies, Park Plaza Hotels has access to Carlson's
powerful reservation and distribution system, airline partnerships with 19
airlines, loyalty programmes such as goldpointsplusSM for guests and Look to
Book(R) for travel agents, and cross-selling opportunities.

There are currently 39 hotels and aparthotels and over 7,700 rooms in the
group's portfolio. By 2010, the Group's committed projects and territorial
franchise agreements are expected to increase the number of rooms to over
10,000.

Projects already under development include Park Plaza Marrakech (2009), Park
Plaza Nuremberg (2009), art'otel cologne (2009), art'otel marrakech (2009) and
Park Plaza Westminster Bridge, London (2010).

Park Plaza Hotels floated on London's AIM Stock Market in July 2007.



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