TIDMPPH
RNS Number : 3356B
PPHE Hotel Group Limited
16 June 2016
16 June 2016
PPHE Hotel Group Limited
Refinancing of London and Dutch hotels
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 has entered into an agreement to
refinance its interests in two of its London hotels (Park Plaza
Sherlock Holmes and Park Plaza Riverbank) (the London Hotels) and
all six of its Dutch hotels (art'otel amsterdam, Park Plaza
Victoria Amsterdam, Park Plaza Vondelpark, Amsterdam, Park Plaza
Amsterdam Airport, Park Plaza Eindhoven, and Park Plaza Utrecht)
(the Dutch Hotels).
Aareal Bank AG (Aareal) will be providing two separate
facilities, one for the London Hotels and the other for the Dutch
Hotels which will be standalone facilities and which will refinance
an existing single facility also provided by Aareal in December
2013.
The facility for the London Hotels is for GBP150 million, a term
of 10 years and will bear a fixed interest rate of 3.248% per
annum.
The facility for the Dutch Hotels is for EUR182 million
(GBP144.3 million), a term of 10 years and will bear a fixed
interest rate of 2.165% per annum.
Following this refinancing and the successful refinancing of
Park Plaza Victoria London and Park Plaza Westminster Bridge London
in April and May this year respectively, the Group has extended the
weighted average term to maturity of its debt facilities from 2.7
years to 9.3 years.
The facility for the London Hotels will be secured by, inter
alia, mortgages over the Group's ownership interests in the London
Hotels and security over the shares in the various companies that
own such interests in the London Hotels. The Dutch Hotels will be
secured by a similar security package over the Group's ownership
interests in the Dutch Hotels and security over the shares in the
various companies that own such ownership interests. The Dutch
Hotels and shares in the relevant entities will not stand as
security for, and the entities that own interests in the Dutch
Hotels will not guarantee, the facility for the London Hotels and
vice versa.
As part of the process of putting the new facilities in place an
independent valuation of the Group's interests in the hotels was
obtained that valued such interests in the London Hotels at GBP254
million and the Dutch Hotels at EUR279.2 million (GBP221.1 million)
with such valuations reflecting the impact of certain
refurbishments that the Group is intending to undertake at some of
the hotels as part of its rolling programme of works on a large
number of the Group's hotels and the Group has agreed with Aareal
to implement some of the works by the second anniversary of the
facilities. The combined book value of the London Hotels and the
Dutch Hotels as at 31 December 2015 was GBP342.9 million and the
estimated book value after the refurbishment is GBP380 million.
The new facilities will be used among others to repay GBP100.8
million and EUR141.9 (GBP112.5 million) which together represent
the entire amount outstanding of the 2013 Aareal facility and for
general corporate purposes.
The new facilities are subject to certain conditions precedent
being fulfilled, and funding is expected to take place on Friday 17
June 2016.
Boris Ivesha, President & Chief Executive Officer of the
Company, commented:
"This refinancing is part of our ongoing programme to refinance
assets within the Group with longer term facilities which enable us
to continue to invest in refurbishment works at these hotels, as we
remain focused on growing our market share and delivering customer
service."
Enquiries:
PPHE Hotel Group Limited
Chen Moravsky, Deputy Chief Executive Tel: +31 (0)20
Officer 717 8603
& Chief Financial Officer
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(R) Hotels & Resorts and art'otel(R) . The
Group has an exclusive licence from Carlson, a global privately
held hospitality and travel company, to develop and operate Park
Plaza(R) Hotels & Resorts in Europe, the Middle East and
Africa. The art'otel(R) 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.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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