Refinancing of existing banking facilities

RNS Number : 7156H

Park Plaza Hotels Limited

02 June 2011

2 June 2011

Park Plaza Hotels Limited
("Park Plaza")

Refinancing of existing banking facilities for Park Plaza Westminster Bridge London

Park Plaza is pleased to announce that its wholly-owned subsidiary, Marlbray Limited (Marlbray), has completed the refinancing of the existing banking facilities in relation to the Park Plaza Westminster Bridge London with Bank Hapoalim for a further seven years until 1 June 2018. As at 31 December 2010, the outstanding amount of the existing facilities was £93.4 million (€108.4 million).

The amended facilities (the Facilities) are for an overall amount of £115.0 million, comprising the existing indebtedness of circa £93.9 million and a new facility of circa £21.1 million for working capital, general corporate purposes and projects.

The Facilities are repayable in quarterly instalments commencing in September 2011 and will bear interest at the rate of 2.65% per annum over 3-month Sterling LIBOR, which rate will increase by 2% on any part of the loan that causes the loan to value ratio to exceed 70%.

The Facilities are secured by, inter alia, the existing debenture over Marlbray's assets and charges over the shares in Marlbray together with new debentures granted by three of Marlbray's related companies (Westminster Bridge Holdings B.V., Park Plaza Hospitality Services (UK) Limited and Westminster Bridge Hotel Operator Limited) and security over the shares in each of these companies.

Commenting on the refinancing, Boris Ivesha, Chief Executive Officer of Park Plaza, said:

"We are delighted to have refinanced our existing banking facilities for Park Plaza Westminster Bridge London, our new 1,019 room flagship hotel which opened in 2010. This agreement builds on our existing relationship with Bank Hapoalim and will enable us to focus on continuing to grow our market share and deliver great customer service."

Enquiries:

Park Plaza Hotels Limited
Boris Ivesha, Chief Executive Officer Chen Moravsky, Chief Financial Officer	Tel: +44 (0)20 7034 4800 Tel: +31 (0)20 717 8603
Hudson Sandler	Tel: +44 (0)20 7796 4133
Wendy Baker / Kate Hough
Investec	Tel: +44 (0)20 7597 4000
James Grace / Grant Bergman

Notes to Editors

About Park Plaza

Park Plaza Hotels Limited is an owner, operator, developer 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), over which the Group has exclusive rights in 56 countries in EMEA, or art'otel, a brand which the Company fully owns.

Through its strategic partnership with Carlson, one of the world's largest travel and hospitality companies, Park Plaza has access to Carlson's powerful reservation and distribution system, airline partnerships with 20 airlines, loyalty programmes such as Club Carlson^SM for guests and look to book® for travel agents and cross-selling opportunities.

The Group currently has 25 Park Plaza hotels and art'otels, with 5,447 rooms in operation. New projects under development include Park Plaza Nuremberg (2012), art'otel amsterdam (2012), a 60-room extension of art'otel berlin city center west (2012) and art'otel london hoxton (2013).

Park Plaza also part owns Arenaturist, one of Croatia's leading hospitality companies, and operates 8 hotels and 5 apartment complexes (with a total of 2,869 rooms) and 7 campsites in three resorts in Pula and Medulin.

Park Plaza's shares are admitted to trading on AIM, a market operated by the London Stock Exchange.