GHL Gresham Hotel

RNS Number:2343W
Gresham Hotel Group Plc
21 May 2002


       Gresham Hotel Group plc - Statement re Takeover Panel adjudication

The Board ("the Board") of Gresham Hotel Group plc ("Gresham" or "the Company")
notes the announcement made today by the Irish Takeover Panel ("the Panel") in
relation to the relationship between Red Sea and Mr Ian Ilsley, which the Board
had asked the Panel to examine.

Gresham also notes the historical and continuing relationships between Red Sea
and Mr Soning (one of Red Sea's proposed nominees as director of Gresham), and
between Mr Soning and Mr Ilsley.

The Board of Gresham can now refocus its efforts on delivering shareholder
value. The Board of Gresham intend to achieve this through the stated strategy
of upgrading the existing portfolio of hotels and re-branding, through its
investment in staff training, the continued examination of releasing value from
the Company's extensive landbanks and focused acquisitions.

The Board has delivered significant value over recent years:

  • There has been dividend growth of 87% over the 5 year period from January,
    1997 to January, 2002 with ordinary dividends per share rising from 2.38
    cents to 4.457 cents. This includes an increase of 7% in the final dividend
    in the period to 31st January, 2002.

  • The share price has increased by 39% over the 5 year period from 63.5
    cents at 20th May,1997 to 88 cents at 20th May, 2002.

  • Earnings per share have increased by 4.66 cents to 10.63 cents in the 5
    years to January, 2001 representing growth of 128%. Earnings for the year to
    January, 2002, in common with many mid sized hotel companies, were
    significantly impacted by the outbreak of Foot and Mouth and the impact of
    September 11th. However, despite what was one of the most difficult years in
    living memory for the Irish Tourism sector, management this year maintained
    turnover at 2000 levels with an aggressive drive for customers.

  • Net asset value per share has increased by almost 115% over the last 5
    years, from €0.81 at January, 1997 to €1.74 at January, 2002. This
    represents an uplift in value from the property portfolio of approximately
    €60 million over the same period.

  • Gearing levels have been reduced, with group debt as a percentage of
    shareholders funds down to 53% at 31st January, 2002, compared to 70% at the
    prior year end.


The Board of Gresham has had no further contact from Red Sea, who, while they
have set out their desire to control the composition of the Board, have not
provided any detailed strategy. Red Sea had refused an offer to participate with
the Company management team, at director level, in developing a detailed
corporate strategy for consideration by the Board. The Board of Gresham, as
previously, would welcome the opportunity to discuss with Red Sea their views in
relation to the strategy of the Board and any ways in which the value for all
shareholders can be further enhanced.


The Board believes that in essence Red Sea has been seeking to gain control of
the Company without first making an offer to all shareholders. The Board
believes that this should not be allowed. The price of control of the Company
should be a full and fair offer to all shareholders, reflecting the inherent
value of Gresham.


For inquiries, please contact:

Sean Henneberry, Chairman                      Mon O'Driscoll, Managing Director

Patrick Coyle, Chief Executive                 Peter Coyne, Director

Fiona Gillespie

Gresham Hotel Group Plc.,                      AIB Corporate Finance,

23 Upper O'Connell Street,                     85 Pembroke Road,

Dublin 1                                       Ballsbridge,

                                               Dublin 4

Tel: +353 1 878 7966                           Tel: +353 1 667 0233


Ends.

                      This information is provided by RNS
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