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Acquisition Of Two Holiday Inn Express Hotels
International Hotel Group Limited
(previously RBDL Investments Limited)
(Incorporated in the British Virgin Islands)
(Company number 1862176)
JSE share code: IHL
ISIN: VGG7396G1046
(“IHL” or the “Company”)
ACQUISITION OF TWO HOLIDAY INN EXPRESS HOTELS
IHL, the hotel and leisure focused property investment company, announces that it has, today, completed the acquisition of two
Holiday Inn Express hotels, located in Redditch and Southampton, for an aggregate purchase price of GBP26 million plus costs.
The purchase price was partly settled through the proceeds of the GBP7 million private placement as announced on
30 March 2016. The balance of the purchase price of GBP19 million was funded through existing cash resources and senior bank
debt funding at a loan to value of circa 55%.
The 100 bedroom Holiday Inn Express Redditch was acquired for GBP7 million plus costs. The hotel was opened in 2007 and is
ideal for both corporate and leisure guests. It is located within easy reach of Birmingham's National Exhibition Centre and is in
close proximity to the West Midlands main motorway network. This hotel also provides access to various significant local tourist
attractions. 2015 occupancy was circa 75%.
The 176 bedroom Holiday Inn Express Southampton was acquired for GBP19 million plus costs. The hotel opened in 2003 and
underwent a bedroom extension in 2008 (adding 45 rooms). The hotel benefits from easy access to Southampton International
Airport, the local motorway network and several significant tourist attractions. 2015 occupancy was circa 84%.
Both hotels are freehold and benefit from new 20 year franchise agreements with InterContinental Hotels Group.
Commenting, CEO Helder Pereira said:
“The successful ‘off market’ acquisition of these high quality, branded, hotels further underpins IHL’s ability and reputation to
source, acquire and fund hotel transactions within the competitive UK hotel sector, whilst delivering on its core investment and
acquisition strategy”.
Commenting, CIO Jon Colley said:
“These hotels are excellent additions to our ever-growing portfolio of UK limited service hotels. Whilst they are mature
businesses in stable markets, we believe there is still growth potential at both properties with a professional operator on board. The
UK regional hotel market is still experiencing record occupancy rates and this is forecast to continue for the rest of 2016. Both
hotels have the potential for investment and possible future expansion.”
The Company is currently in negotiations to conclude a further acquisition, details of which will be announced in due course.
For further information please contact:
M Partners S.à r.l.
Luxembourg listing agent +352 263 868 610
Java Capital
JSE sponsor +27 (0) 11 722 3050
FTI Consulting
South African Public Relations Advisor
Max Gebhardt +27 (0) 11 214 2402
Notes to editors:
IHL is a hotel and leisure focused property Investment Company which owns eight hotels in the UK. The Company’s shares are
currently listed on the Euro MTF Market of the Luxembourg Stock Exchange, which constitutes its primary listing, and on the
AltX of the JSE which constitutes its secondary listing.
5 April 2016
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