Acquisition

Park Plaza Hotels Limited
10 April 2008



                                                                   10 April 2008

                         Park Plaza Hotels Limited
                      ('Park Plaza' or 'the Company')

              Acquisition of shareholding in Croatian hotel owner


Park Plaza, owner, operator and franchisor of hotels in Europe, the Middle East
and North Africa, today announces that it has acquired, through its wholly-owned
subsidiary, Euro Sea Hotels N.V., a 20% stake in WM/DMREF Bora B.V. (Bora) from
a group of real estate investment funds sponsored and managed by Goldman Sachs.
As part of the transaction, Park Plaza is also acquiring 20% of the debt
currently provided to Bora by its shareholders.   The total cost of the
acquisition, including the debt being acquired, is €22.3 million, which will be
funded from Park Plaza's existing cash resources.

Bora was formed on 23 July 2007 for the purpose of acquiring a controlling
interest in Arenaturist d.d. (Arenaturist), a public company listed on the
Zagreb (Croatia) Stock Exchange, and three related private companies. Bora
currently owns approximately 74% of Arenaturist and 100% of the three private
companies. These companies together own eight hotels and five apartment
complexes in and around Pula on the Istrian coast of Croatia.  The hotels and
apartment complexes currently have approximately 3,000 keys, suites and
apartments, and provide accommodation and services primarily for leisure
travellers.  Arenaturist and the three related companies also operate five
island and coastal properties, which are currently used as campsites, and a
number of other properties also near Pula.

Bora intends to significantly upgrade and refurbish the hotels and apartment
resorts.  A number of the hotels will be branded Park Plaza Hotels & Resorts and
will offer accommodation and services in line with the core values of affordable
luxury associated with the brand.  There are also plans to enhance and
reposition the portfolio through significant investment and possible upgrades to
the portfolio's conference and recreation facilities in order to broaden the
revenue and target customer base of the properties.

In addition to its investment in Bora, Park Plaza and Arenaturist will also
enter into an agreement under which the Park Plaza group will manage and operate
the portfolio of properties for an initial term of 20 years.

As at 31 December 2007, the net asset value of Bora, based on unaudited
management accounts was €1.1 million.  For the period ended 31 December 2007,
based on unaudited management accounts, Bora made a loss of €0.2 million.  As at
31 December 2007, the audited net asset value of Arenaturist was €0.7 million.
For the year ended 31 December 2007, Arenaturist made an audited profit of €0.5
million.

Park Plaza's management believes that Bora's portfolio of properties is well
placed to benefit from Croatia's growing status as a popular destination for
international travellers.  According to the Croatian Ministry of Tourism, the
number of international visitors to Croatia almost doubled between 2000 and
2006, with Istria, in which Pula is located, being the most visited area of the
country.  As a result, there is strong demand for leisure travel accommodation,
with opportunities in other segments including business travel.  Upscale segment
hotels in the country are currently achieving average room rates at European
levels, and the pricing environment is expected to benefit from the continuing
shortage of available high quality hotel rooms.  Lowscale segment hotels
experience high levels of seasonal volatility and low occupancy rates for the
year as a whole, due to the current industry emphasis on one week summer
holidays and insufficient low season offerings.

The Bora properties are located in an area with good transport links to large
tourist markets, such as Italy, Germany and Austria.  In addition, Park Plaza's
strategic partnership with Carlson group of companies (Carlson), one of the
world's largest travel and hospitality companies, will give Arenaturist's
portfolio access to Carlson's reservation and distribution system, partnerships
with 19 airlines, loyalty programmes for guests and travel agents, and
cross-selling opportunities.  Besides Park Plaza, Carlson brands include Regent,
Radisson, Country Inn & Suites, Park Inn and Carlson Wagonlit Travel.  Carlson's
platform, which also supports the cross marketing of nearly 1,000 hotels and
resorts in 70 countries provides a powerful tool for marketing the Arenaturist
portfolio to a significant database of mid to upscale segment business, leisure
and resort travellers.

Boris Ivesha, Chief Executive Officer of Park Plaza, said: 'This investment
provides an excellent opportunity to capitalise on our expertise in the
redevelopment and management of hotel properties and conference centres.  Our
affiliation with the Carlson hotel and resort network gives us a distinct
advantage in the marketing of these properties, which are located in a prime
area of outstanding natural beauty that is attracting a growing number of
travellers.

'Over the next three to four years, we believe there is a substantial
opportunity to increase the value of our investment in Bora and grow the Park
Plaza Hotels & Resorts brand by broadening the revenue and target customer base
of the Arenaturist properties.'


                            www.parkplazahotels.net

Enquiries:


Park Plaza
Boris Ivesha, Chief Executive Officer                  Tel: [phone]
Chen Moravsky, Finance Director                        Tel: [phone]

Hudson Sandler                                         Tel: [phone]
Jessica Rouleau/Wendy Baker




Notes to Editors



The Park Plaza group is owner, operator and franchisor of hotels in Europe, the
Middle East and Africa.  The group operates under two brands: Park Plaza Hotels
& Resorts (part of Carlson Hotels Worldwide), over which the group has exclusive
rights in 56 countries in EMEA and 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 26 properties and over 4,700 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 8,000.



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



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



                                      END


                      This information is provided by RNS
            The company news service from the London Stock Exchange