Diageo announces sale of Gleneagles Hotel

RNS Number : 7590R

Diageo PLC

01 July 2015

 



Press Release

1^st July 2015

Diageo announces sale of Gleneagles Hotel

Diageo plc today announces it has sold Gleneagles Hotel Limited to a private investment group led by Ennismore for an undisclosed amount. Ennismore is a real estate hospitality firm which owns The Hoxton brand, and develops and operates a series of unique hotels in Europe and the United States. The group has its origins in Shoreditch, East London.

Gleneagles Hotel was opened in 1924 and has been wholly owned by Diageo since 1984.  In the year ended 30 June 2014 the business generated revenues of £43.5 million and an operating profit of £2.6 million with a return on invested capital of 4% based on book value for the year ended 30 June 2014.

Ivan Menezes, Chief Executive, commented: "Diageo is proud to have been the owner of Gleneagles but the hotel is not a core business for us and therefore following the success of the Ryder Cup we feel this is an appropriate time to realise value through this transaction. I am pleased that Diageo's brands, especially our scotch brands, will continue to be an important feature at this iconic Scottish hotel. We wish Ennismore and all the staff at the hotel a successful future."

For further information

Media relations

Vickie Sheriff [phone]

Victoria Ward + 44(0)208 978 4353

[e-mail]

Investor relations
Pier Falcione [phone]

[e-mail]

About Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer and wine categories. These brands include Johnnie Walker, Crown Royal, JεB, Buchanan's, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com. Visit Diageo's global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice.

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This announcement contains certain forward-looking statements relating to the financial condition, results of operations and business of Diageo and certain plans and objectives of Diageo. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aims", "continue", "will", "may", "should", "would", "could", or other words of similar meaning. These statements are based on assumptions and assessments made by Diageo in light of its experience and its perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and circumstances could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. In particular, no statement regarding earnings per share should be interpreted to mean that earnings per share will necessarily be greater than those for any relevant preceding financial period. Diageo assumes no obligation to update or correct the information contained in this announcement (whether as a result of new information, future events or otherwise), except as required by applicable law.

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