Acquisition of London Luton Airport Site

RNS Number : 8475H

PPHE Hotel Group Limited

25 June 2013

 



25 June 2013

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

Acquisition of London Luton Airport Site

PPHE Hotel Group, which 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 its wholly-owned subsidiary, Club Luton Hotel Holding B.V. ("Club Luton Hotel"), has today entered into a conditional development agreement ("Agreement") to lease a 2.57 acre site at Luton airport (the "Site") from London Luton Airport Operations Limited (the "Landlord").

The Site, for which planning consent has already been granted, will be used by the Group to develop a new Park Plaza hotel comprising a minimum of 128 bedrooms. The Agreement is conditional upon the Company obtaining funding for the development of the hotel.

Under the Agreement, the lease for the Site will be granted following the later of obtaining the development funding; or the Landlord's approval of the specifications for construction of the hotel. Club Luton Hotel's obligations under the Agreement are guaranteed by the Company until 12 months following the date of practical completion of the hotel.

Once granted, the lease will be for 150 years with an annual rent of £120,000 (indexed to the Retail Price Index) with such rent commencing on 23 December 2014. The Company has paid to the Landlord a deposit of £60,000.

Boris Ivesha, President & Chief Executive Officer of PPHE Hotel Group, said:

"The Board is delighted with the opportunity to develop a hotel at London Luton Airport, a key airport linking London to international destinations. Fronting both airport access roads, the hotel will be within convenient walking distance from the terminal and will offer our guests a range of leading amenities." 

Enquiries:

PPHE Hotel Group Limited

Chen Moravsky, Chief Financial Officer                                                   Tel: [phone]

Hudson Sandler                                                                                    Tel: [phone]

Wendy Baker / Kate Hoare

Notes 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 Brands:                             Our Company:

www.parkplaza.com                   www.pphe.com

www.artotels.com

www.arenaturist.com

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

 

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