Quintain Estates & Development PLC
09 August 2006
9 August 2006
Quintain Estates & Development PLC ('Quintain' / 'Company')
QUINTAIN SIGNS MANAGEMENT DEAL WITH HILTON
TO CONSTRUCT NEW WEMBLEY HOTEL
Simultaneous acquisition of existing Wembley Plaza hotel
Quintain is pleased to announce that a number of its wholly owned subsidiaries
have signed a conditional long term management agreement with Hilton
International for the construction of a new 400 bedroom full service hotel at
Wembley. The new hotel is scheduled to be completed by 2010 and will be operated
by Maple Hotels Management Company Limited, a wholly owned subsidiary of Hilton
Hotels Corporation (NYSE:HLT).
In addition to the new hotel, the transaction includes the purchase of Wembley
Plaza, an existing 306 bedroom Hilton property. This will continue to be
operated under a short term management agreement by Comfort Hotels Limited, a
wholly owned subsidiary of Hilton Hotels Corporation and then the site will form
part of the redevelopment of the western section of Wembley, after 2010.
The total transaction value is £103 million, comprising £91.5 million of new
build costs and a payment of £11.5 million for the acquisition of the Wembley
Plaza hotel. This sum also includes refurbishment costs of £1.5 million. It is
the Company's current intention that both the purchase price payable at
completion and the construction cost will be funded from the Company's existing
bank facilities. In the event that the construction of the new Hilton hotel has
not commenced by December 2009, a sum of £4 million of deferred consideration
will then be payable to Hilton for the Plaza hotel.
The forecast trading profits of the Wembley Plaza hotel for the first full year
of operation to 31st December 2007 are £1.2 million.
Nick Shattock, Quintain's Deputy Chief Executive, commented:
'The signing of a long term agreement with Hilton for the new full service hotel
and our simultaneous acquisition of their existing Wembley Plaza property marks
another significant step forward for our regeneration of Wembley. We will
continue to seek high quality international partners such as Hilton and Live
Nation, with whom we signed a 15 year management contract for the Arena in
January, in order to ensure Wembley takes its deserved place as a world-class
leisure and retail destination for visitors from all over the world.'
Quintain also confirmed today that 129 reservations with deposits paid have been
received for the 143 private apartments currently under construction at Wembley
in partnership with Genesis and Family Mosaic Housing Associations. The 143
apartments are part of a mixed-use development to the west of the Arena,
comprising a total of 286 apartments of which 48% are affordable and will be
delivered in joint venture with Genesis and Family Mosaic Housing Associations.
Additional facilities include retail, leisure and community space, totalling
13,000 sq ft.
For further information, please contact:
Nick Shattock / Rebecca Worthington
Quintain Estates and Development PLC
Tel: 020 7478 9418
Stephanie Highett / Dido Laurimore
Tel: 020 7831 3113
Director of Communications
Hilton UK & Ireland
Tel: 020 7856 8313
This information is provided by RNS
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