Park Plaza in London hotel deal

Park Plaza Hotels Europe Holdings has acquired the interests in, and related loans to three hotels in London which it does not already own: the Park Plaza Sherlock Holmes Hotel, Park Plaza Victoria Hotel and Park Plaza Riverbank Hotel . The group acquired the properties from a subsidiary of Israeli firm Elbit for a consideration of £21 mln (EUR 25.1 mln).

Currently the Park Plaza group owns 50% of Victoria and 55% of each of Grandis and Riverbank. The hotels are operated under the direction of Park Plaza Hotels Europe. Based on the most recent valuation of the hotels after the deduction of debt, the assets to be acquired have a net value of £26.2 mln. For the year ended 31 December 2009 the three hotel companies made a pre-tax loss of £5.4 mln.

As at 31 December 2010 the three hotel companies are expected to have bank debt of £179 mln of which Park Plaza would have consolidated £95 mln had it not acquired Elbit's interests.

Boris Ivesha, Park Plaza's Chief Executive Officer, commented: 'We are delighted to announce this transaction which will result in Park Plaza owning 100% of Park Plaza Sherlock Holmes Hotel, Park Plaza Victoria Hotel and Park Plaza Riverbank Hotel. These three well established London hotels, which Park Plaza operates under contract, continue to perform well. Our experienced management team remains as always focused on delivering great facilities and service to our customers.'

Park Plaza Hotels Limited is owner, operator and franchisor of hotels in Europe, the Middle East and Africa. The majority of the group's hotels operate under the Park Plaza Hotels & Resorts brand (part of Carlson Hotels Worldwide), over which the Group has exclusive rights in 56 countries in EMEA, or art'otel, a brand which the company fully owns. Park Plaza Hotels also manage the luxury all-suite Plaza on the River- Club and Residence, London.