17 June 2016
PPHE Hotel Group Limited
Disposal to Arenaturist
PPHE Hotel Group Limited (the Company), 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 that it entered into an agreement to sell its wholly owned Croatian operating companies (the Target Companies) to Arenaturist d.d. (Arenaturist) for HRK 108.55 million (€14.4 million) to be received in cash at completion, such consideration was determined by an independent third party valuation of the Target Companies. Completion of the disposal is expected to take place by 30 June 2016 subject only to the parties having performed in all material respects their respective obligations in connection with the disposal, as at that date.
The disposal forms part of the plans to develop Arenaturist (of which the Company owns 65.63% of the share capital and whose shares are traded on the Zagreb Stock Exchange) into a leading Central and Eastern European leisure and hospitality company with a business model that includes owning and managing its own assets and those of others, primarily under the Park Plaza brand.
As at 31 December 2015, the Target Companies had combined revenues of HRK 61.5 million (€8.18 million) and EBITDA of HRK 12.7 million (€1.69 million) and the Companies' net debt amounted to HRK 15.1 million (€2.01 million).
Boris Ivesha, President & Chief Executive Officer of the Company, commented:
"Arenaturist's acquisition of these three companies is the next step in the evolution of Arenaturist into a leading European leisure and hotel company and will allow for further growth and development in Croatia and other Central and Eastern European markets. We expect their integration to be seamless and to add value to Arenaturist's long term strategy."
Enquiries:
PPHE Hotel Group Limited |
|
Chen Moravsky, Deputy Chief Executive Officer
& Chief Financial Officer
|
Tel: +31 (0)20 717 8603 |
Hudson Sandler Financial 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, 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 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 also owns a controlling 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 five new hotel projects and one hotel extension and reconfiguration. These developments are expected to add nearly 1,100 rooms to our portfolio by the end of 2016 and an additional 500 rooms by the end of 2019.
Our Company:
www.pphe.com
Our Hotel Brands:
www.parkplaza.com
www.artotels.com
www.arenaturist.com
For images and logos visit www.vfmii.com/parkplaza
Forward-looking statements
This announcement may contain certain "forward-looking statements' which reflect the Company's and/or the Directors' current views with respect to financial performance, business strategy and future plans, both with respect to the Group and the sectors and industries in which the Group operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue" and similar statements are of a future or forward-looking nature. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Group's actual results to differ materially from those indicated in these statements. Any forward-looking statements in this announcement reflect the Group's current views with respect to future events and are subject to risks, uncertainties and assumptions relating to the Group's operations, results of operations and growth strategy. These forward-looking statements speak only as of the date of this announcement. Subject to any legal or regulatory obligations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to the Group or individuals acting on behalf of the Group are expressly qualified in their entirety by this paragraph. Nothing in this announcement should be considered as a profit forecast.
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