Sale of 3 Ryan Branded Hotels
09 Junho 2003 - 4:02AM
UK Regulatory
RNS Number:0629M
Gresham Hotel Group Plc
09 June 2003
Gresham Hotel Group plc
9 June 2003
Gresham Hotel Group plc
Announces the Sale of its three Ryan Branded Hotels for Euro35.75 million
Gresham Hotel Group plc announced today that (by separate transactions entered
into by wholly-owned-subsidiaries) it has agreed to dispose of its Ryan Branded
Hotels, namely the Killarney Ryan Hotel and Leisure Centre (Killarney Ryan), the
Limerick Ryan Hotel and Conference Centre (Limerick Ryan) and the Galway Ryan
Hotel and Leisure Centre (Galway Ryan), for an aggregate cash consideration of
Euro35.75 million. The Net Book Value of these properties as at 31 December 2002
amounted to Euro34.64 million.
Each of the purchasers will also acquire certain working capital assets
transferred at completion. The working capital assets transferred will be a
maximum balance of Euro0.8 million per transaction. These working capital assets
were Euro0.4 million in aggregate as at 31 December 2002. The consideration is
payable on the respective completion dates, anticipated to be mid-July 2003 in
respect of the Limerick Ryan and the Galway Ryan, and the end of November 2003
in respect of the Killarney Ryan.
Gresham Hotel Group plc has previously announced its intention to focus on four
star city centre hotels and to cluster its properties in appropriate locations.
The disposal of the Ryan Branded properties is consistent with this strategy.
It is intended that the funds raised from the disposals will be applied to
reduce debt, creating increased flexibility to further expand the Group in line
with its stated strategy.
Details of the sales proceeds and net book value of these properties as
reflected in the Group's Balance Sheet as at 31 December 2002, together with the
respective loss before taxation (after allocating central overheads and other
group costs) for the eleven months to 31 December 2002 are as follows:
Loss for 11 Months Net Book Value Sale Proceeds
Ended 31 Dec 2002 As at 31 Dec 2002 Euro000's
Euro000's Euro000's
Killarney Ryan 1,116 11,234 13,860
Limerick Ryan 305 11,064 11,000
Galway Ryan 651 12,339 10,890
The disposals are being made between the following parties in respect of the
properties:
Vendor Purchaser
Killarney Ryan Ryans Irish Hotels Limited Hepton Developments Ltd
Limerick Ryan Ryans Irish Hotels Limited Budelli Ltd
Galway Ryan Ryans Irish Hotels Limited and Valet Limited Elite Catering Ltd
Each of the respective purchasers has entered into an agreement with Choice
Hotels Ireland, the parent company of The Quality Hotel Group, which will manage
the properties going forward.
Patrick Coyle, Chief Executive commented "The decision to sell the three hotels
was taken following a review of the property portfolio last year. These
disposals put the Group in a strong position to optimise the value of its
remaining properties and to develop the Group going forward. On behalf of the
Board I would like to thank all staff for their service with the Group and wish
them well in what I am sure will be a very exciting future."
Patrick Coyle, Chief Executive, Gresham Hotel Group plc +353 1 817 6209
Peter Coyne, AIB Corporate Finance Limited +353 1 667 0233
Fiona Gillespie, Communications Consultant +353 87 250 2447
The directors of Gresham Hotel Group plc accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of the directors of Gresham Hotel Group plc (who have taken all
reasonable care to ensure that such is the case), the information contained in
this announcement for which they accept responsibility is in accordance with the
facts and does not omit anything likely to affect the import of such
information.
END
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