PPHE Hotel Group Limited Update Statement (4990T)

TIDMPPH

RNS Number : 4990T

PPHE Hotel Group Limited

15 November 2019

15 November 2019

PPHE Hotel Group Limited

Update Statement

At this year's Annual General Meeting held on 15 May 2019 ("AGM"), PPHE Hotel Group Limited ("PPHE", "Company") received the following votes in respect of resolutions 8 and 9.

Resolution 8: To re-appoint Kevin McAuliffe as a Director of the Company:

 
 Total votes cast   For(*)                  Against(*)              Withheld 
                    Number        %         Number        % 
                   ------------  --------  ------------  -------- 
 25,893,876         23,569,039    91.02     2,324,837     8.98      0 
                   ------------  --------  ------------  --------  --------- 
 7,519,059**        5,194,222**   69.08**   2,324,837**   30.92**   0** 
                   ------------  --------  ------------  --------  --------- 
 

Resolution 9: To re-appoint Nigel Jones as a Director of the Company:

 
 Total votes   For(*)                  Against(*)              Withheld 
  cast 
               Number        %         Number        % 
              ------------  --------  ------------  -------- 
 25,893,876    23,569,039    93.05     1,759,667     6.95      565,170 
              ------------  --------  ------------  --------  ---------- 
 7,519,059**   5,194,222**   74.70**   1,759,667**   25.30**   565,170** 
              ------------  --------  ------------  --------  ---------- 
 

(each a "Resolution" and together the "Resolutions")

* Includes discretionary votes

** Votes cast by independent shareholders

Based on discussions with major independent shareholders, the Company understands that the voting decisions were centred on the perceived independence of Mr. McAuliffe and Mr. Jones due to their length of service of more than nine years. Consequently, shareholders had concerns about the composition of the Board Committees of which both were members prior to the AGM.

The independence of Mr. McAuliffe and Mr. Jones was carefully considered when proposing them both for re-election (including the matter of their respective tenures). Whilst the Board believes that both Mr. McAuliffe and Mr. Jones are highly effective and engaged members of the Board with a wealth of knowledge which is highly valued by the Company, the Board has given further consideration to the views of its independent shareholders and taken the following steps since the AGM vote.

As previously announced the Company has recently recruited a new independent non-executive director, Mr. Kenneth Bradley. Mr. Bradley has been appointed to the Audit and Remuneration Committees. Additionally, Mr. Bradley has joined the Nominations Committee which is now composed of four non-executive directors, three of which are deemed to be independent (reducing to three non-executive directors two of which will be independent when Mr Jones retires).

Resolution 8:

While the Board continues to believe that Mr. McAuliffe is independent in character and judgement, he is no longer deemed to be an independent director by virtue of his role as Deputy Chairman and has consequently stepped down from both the Audit and Remuneration Committees. Mr. McAuliffe will remain Deputy Chairman, primarily tasked with overseeing corporate governance.

Resolution 9:

Mr. Jones will retire from the Board prior to the annual general meeting to be held in 2020 following the publication of the 2019 annual financial results. In anticipation of Mr. Jones's retirement, the Company is currently looking for an additional independent non-executive director to join the Board.

The Company will continue to engage with independent shareholders and with the main proxy advisory agents on this and other matters as appropriate. Accordingly, a final summary will be provided within the Company's forthcoming Annual Report and Accounts.

Enquiries:

 
PPHE Hotel Group Limited 
Inbar Zilberman, General Counsel  Tel: [phone] 
 

Notes to Editors

PPHE Hotel Group is an international hospitality real estate company, with a GBP1.7 billion portfolio (valued as at summer of 2019) of primarily prime freehold and long leasehold assets in Europe.

PPHE Hotel Group's guiding principle is to generate attractive returns from operations and long-term capital appreciation.

Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises hospitality real estate. Its primary focus is full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations.

PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one of the world's largest hotel groups, to develop and operate Park Plaza(R) branded hotels and resorts in Europe, the Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel(R) brand and its Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments(R) and Arena Campsites(R) brands. This multi-brand approach enables PPHE Hotel Group to develop and operate properties across several segments of the hospitality market.

PPHE Hotel Group is one of the largest owner/operators of hotels in central London and its property portfolio comprises of 38 hotels and resorts in operation, offering a total of approximately 8,800 rooms and 8 campsites, offering approximately 6,000 units. PPHE Hotel Group's development pipeline includes two new hotels in London and one in New York City which are expected to add an additional 600 rooms by the end of 2022/2023.

PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange and a constituent of the FTSE 250. PPHE Hotel Group also holds a controlling ownership interest in Arena Hospitality Group, whose shares are listed on the Prime market of the Zagreb Stock Exchange.

Company websites

www.pphe.com

www.arenahospitalitygroup.com

For reservations

www.parkplaza.com

www.artotels.com

www.arenahotels.com

www.arenacampsites.com

For images and logos visit

www.vfmii.com/parkplaza

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November 15, 2019 02:00 ET (07:00 GMT)