Acquisition of two hotels in Berlin

RNS Number : 6289C

PPHE Hotel Group Limited

18 April 2013

 



 18 April 2013

PPHE Hotel Group Limited

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

Acquisition of two hotels in Berlin

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 subsidiaries, amongst others, art'otel Berlin-Mitte/Park Plaza Betriebsgesellschaft mbH, (the "Purchasers") yesterday entered into an agreement to acquire the freehold interests in two hotels in Berlin which the Group currently leases and manages, namely art'otel berlin mitte and art'otel berlin kudamm respectively for a consideration of €17.5 million net of any applicable VAT (the "Acquisition").  

As part of the Acquisition, the Group has agreed with the seller that, on completion, the seller will pay to the Group €2 million which will be used for renovation works associated with the acquired hotels.

Completion of the Acquisition will be subject to receiving local authority consent and cannot occur prior to 31 May 2013. The Group is currently negotiating funding arrangements for the Acquisition from external resources. The Purchasers have paid a non-refundable €2 million cash deposit to the seller.

art'otel berlin mitte is a 109 guest room hotel located in Berlin Mitte. Facilities include a bar, restaurant and several meeting rooms in the historic Ermelerhaus which is integrated into the hotel. Georg Baselitz, one of Germany's best known painters is the signature artist for this hotel.   

art'otel berlin kudamm is located just off the Kurfürstendamm, one of Berlin's most famous avenues and known for its excellent shops and restaurants. The hotel offers 133 guest rooms, a bar and several meeting rooms. The signature artist for this art'otel is the German painter and sculptor Wolf Vostell.

Boris Ivesha, President & Chief Executive Officer of the Company, said:

"The Board is delighted with the acquisition of the freeholds of these two hotels in the heart of Berlin which we have managed under our wholly owned art'otel brand for a number of years already. The Group's portfolio in Berlin consists of five hotels and this latest acquisition highlights our commitment to our presence in gateway cities in Europe."

Enquiries:

PPHE Hotel Group Limited

Chen Moravsky, Chief Financial Officer                                                   Tel: [phone]

Hudson Sandler                                                                                    Tel: [phone]

Wendy Baker / George Parker

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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