Hotel Management Agreement

RNS Announcement

RNS Number : 7492C

PPHE Hotel Group Limited

20 October 2015

PPHE Hotel Group Limited

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

PPHE sign Hotel Management Agreement at Battersea Power Station

and notice of trading update

PPHE Hotel Group, which together with its subsidiaries (the "Group") 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 the signing of a hotel management agreement with Battersea Power Station Development Company (BPSDC) for a 160 plus bedroom, luxury lifestyle art'otel planned to open in 2019.

art'otel london battersea power station will be developed by Battersea Power Station and managed by PPHE Hotel Group, under the art'otel brand. The hotel will offer incredible guest amenities with a number of skyline floors boasting panoramic views, a roof garden, an outdoor rooftop pool and bar overlooking the iconic chimneys, a signature destination restaurant and double height bar with views across the Power Station and London skyline.

art'otel is a contemporary collection of hotels located in cosmopolitan centres across Europe that fuse exceptional architectural style with art-inspired interiors. With a powerful combination of world-class art from some of the world's most exciting artists and best-in-class service delivered by a talented team, art'otel offers a hotel experience like no other. art'otel redefines the traditional hotel experience by allowing guests to live within the creative process, surrounded by captivating art. At the brand's heart lies the art itself. The signature art'otel artist is yet to be revealed but is likely to be an acclaimed local or national artist. The art'otel brand is owned by the Group.

Boris Ivesha, President & Chief Executive Officer, PPHE Hotel Group said; "We are delighted to have signed this Hotel Management Agreement, which will further expand our presence in London. The Battersea Power Station Development will transform London's skyline; creating a new destination and hub for local communities, visitors and residents. As a company we take pride in opening hotels, restaurants and bars in areas which are embarking on new urban and community journeys and the Battersea Power Station project is a spectacular example of this. art'otel perfectly complements the shareholders of Battersea Power Station's vision and we look forward to working together to create a new chapter in London's history over the next four years."

Rob Tincknell, CEO of Battersea Power Station Development Company commented; "We are incredibly excited to be announcing this important transaction and for it to be with such an innovative hotel company. The selection process to find the right brand and operator was a very competitive and thorough one, involving the leading hotel brands from around the world. art'otel was a standout winner, a brand unlike anything we have seen in London to date, and it is particularly fitting for it to have art at the very heart of the brand and the hotel itself. I am confident that together with art'otel we will deliver a beyond expectations hotel."

The Company will be announcing a Trading Update in relation to the quarter ending 30 September on Wednesday 4 November 2015.

Enquiries

PPHE Hotel Group Limited

Chen Moravsky, Deputy Chief Executive Officer & Chief Financial Officer

Tel: +31 (0)20 717 8603

Hudson Sandler Public Relations

Wendy Baker / Katie Matthews

Tel: +44 (0)20 7796 4133

Notes to editors

PPHE Hotel Group Limited is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, develops, operates and franchises 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 Group has an exclusive licence from Carlson, a global privately held 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 portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of more than 8,300 rooms. The development pipeline includes four new hotel projects, one hotel extension and reconfiguration and one rebranding project. These developments are expected to add over 1,000 rooms to our portfolio by the end of 2016 and an additional 352 rooms by the end of 2019.