PPHE Hotel Group Limited Refinancing of four UK hotels (8280S)

TIDMPPH

RNS Number : 8280S

PPHE Hotel Group Limited

28 June 2018

PPHE Hotel Group Limited

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

Refinancing of four UK hotels

PPHE Hotel Group, an international hospitality company which together with its subsidiaries (the Group) owns and develops hotels and resorts, operates the Park Plaza(R) brand in EMEA and owns the art'otel(R) brand, is pleased to announce that it has entered into an agreement to refinance its interests in four hotels in the United Kingdom (namely, Park Plaza London Park Royal, Park Plaza County Hall London, Park Plaza Leeds and Park Plaza Nottingham) (together, the Hotels).

Banque Hapoalim (Luxembourg) S.A. (BHI) will be providing the new GBP45 million facility, which will be for a term of 7 years and will bear a fixed interest rate of 4.367% per annum (the Facility).

The Facility contains customary debt service cover and loan to value financial covenants which must be complied with at all times from 31 March 2019, subject to an ability to cure in certain circumstances through the injection of equity or prepayment (to the extent necessary) of the Facility.

The Facility will be secured by, among other things, mortgages over the Group's ownership interests in the Hotels and security over the shares in the Group companies that own such interests in the Hotels.

The Facility will be used (among other things) to refinance the existing 2016 Park Plaza London Park Royal construction facility with BHI in full, to repay certain shareholder loans and for general corporate purposes.

Drawdown under the Facility is subject to certain conditions precedent being fulfilled and funding is expected to take place by the end of June 2018. The Facility is further subject to certain conditions subsequent being fulfilled within one year.

Enquiries:

 
PPHE Hotel Group Limited 
 
                                                       Tel: [phone] 
Robert Henke, Executive Vice President of Corporate    8600 
 Affairs 
 and Customer Experience                               Tel: [phone] 
 Lisa Woodman, Director of Corporate Communications    4800 
finnCap Ltd 
Matt Goode / Emily Watts (Corporate Finance)         Tel: + 44 (0)20 
 Andrew Burdis (ECM)                                  7220 0500 
Berenberg 
                                                     Tel: [phone] 
Ben Wright / Mark Whitmore / James Brooks             7800 
Hudson Sandler 
                                                     Tel: [phone] 
Wendy Baker/ Sophie Lister                            4133 
 

Notes to editors

The Company is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full-service upscale, upper upscale and lifestyle hotels in major gateway cities, regional centres and select resort destinations, predominantly in Europe.

The majority of the Group's hotels operate under the Park Plaza(R) Hotels & Resorts or art'otel(R) brands. The Group has an exclusive licence from the Radisson Hotel Group, one of the world's largest hotel groups, to develop and operate Park Plaza(R) Hotels & Resorts in Europe, the Middle East and Africa.

The art'otel(R) brand is wholly owned by the Group.

The Group has a controlling ownership interest (51.97% of the share capital) in Arena Hospitality Group, one of Croatia's best-known hospitality groups.

The Group's portfolio of owned, leased, managed and franchised hotels comprises 39 hotels in operation offering a total of approximately 9,000 rooms. The Group's development pipeline includes two new hotels which are expected to add an additional 500 rooms by the end of 2022.

Company websites:

www.pphe.com

www.arenahospitalitygroup.com

For reservations:

www.parkplaza.com

www.artotels.com

www.arenaturist.com

For images and logos visit www.vfmii.com/parkplaza

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June 28, 2018 02:00 ET (06:00 GMT)