INTERNATIONAL HOTEL PROPERTIES LIMITED - Acquisition of the Holiday Inn Express Edinburgh City Centre

Release Date: 16/01/2017 08:00
Code(s): IHL
 
Wrap Text
Acquisition of the Holiday Inn Express Edinburgh City Centre

International Hotel Properties Limited
(previously International Hotel Group Limited)
(Incorporated in the British Virgin Islands)
(Company number 1862176)
JSE share code: IHL
ISIN: VGG487261064
(“IHL” or the “Company”)


ACQUISITION OF THE HOLIDAY INN EXPRESS EDINBURGH CITY CENTRE


IHL, the hotel and leisure focused property Investment Company, announces that on 13 January 2017 it completed on
the acquisition of the Holiday Inn Express Edinburgh City Centre for the purchase price of GBP17.7 million plus
costs. The property adds a further 161 hotel bedrooms and takes IHL’s portfolio to nine hotels with a total of 1,135
bedrooms.

The purchase price was partly settled through GBP9.6 million of existing cash reserves with the balance raised
through debt funding with Santander, which will increase the loan to value ratio for the Company’s total portfolio to
51%.

Edinburgh is a major tourist destination and is one of the UK’s most popular conference destinations outside of
London. Occupancy and daily rates for the hotel peak during the month of August and are supported by a consistent
corporate demand, resulting in a RevPAR (Revenue Per Available Room) in excess of £70, which is among the
highest in the UK.

Jon Colley, IHL’s Chief Executive Officer, said: “This is a high-quality asset in the most stable hotel market in the
UK, outside of London, and is an excellent addition to IHL’s growing portfolio. The hotel, which will continue to
operate under a franchise agreement with IHG and a management agreement with RBH, consistently trades at a very
high occupancy and is a mature, stable business having been in operation for over 12 years. The hotel also has the
potential for the addition of extra hotel rooms, which management are exploring. The acquisition underpins IHL’s
investment strategy and business plan of investing in good quality hotels in strong locations with international brands
that have the potential to deliver consistent cash returns to shareholders.”


For further information, please contact:

M Partners
Luxembourg listing agent                                 +352 263 868 602

Java Capital
JSE sponsor                                              +27 (0) 11 722 3050

FTI Consulting
South African Public Relations Advisor
Sherryn Schooling                                        +27 (0) 21 487 9027

Company Secretary
Osiris Secretarial Services Ltd                          +1 (284) 494 9820

Notes to editors:

IHL is a hotel and leisure focused property Investment Company that owns nine 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.

16 January 2017

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