30th Aug 2007 08:00
Peel Hotels PLC30 August 2007 PEEL HOTELS PLC ("Peel Hotels" or the "Company") Disposal of Avon Gorge Hotel Peel Hotels announced today that it has reached agreement for the sale of thebusiness and assets, together with the freehold property, known as the AvonGorge Hotel in Bristol together with the associated staff house at 10, CaledoniaPlace in Bristol for an aggregate consideration of £15,500,000 to be paid incash at completion, with completion expected on Monday 3 September 2007.Attributable Earnings for the Avon Gorge Hotel for the Financial Year ended 11February 2007 before Interest, Tax and Depreciation was £747,694. Peel Hotels also announced today that it had reached agreement on Friday 24August 2007 for the sale of the freehold of three quarters of an acre of landwith planning permission for 99 new apartments, office space and associated carparking in Salem Street, Bradford for a consideration of £2,000,000 to be paidin cash at completion, with completion expected on 26 November 2007. This landhad been acquired by Peel Hotels in conjunction with the acquisition of theMidland Hotel, Bradford in 1998. Attributable Earnings from Car Parking incomeat the Salem Street site for the Financial Year ended 11 February 2007 beforeinterest, Tax and Depreciation was £55,658. The aggregate consideration receivable will leave Peel Hotels PLC with no netdebt and cash on deposit of approximately £2,000,000. The Company will own andoperate eight hotels after the sale of the Avon Gorge. Current Trading The financial period for the 6 months ending on Sunday 26 August 2007 finishedwith turnover up 2.2% and Revpar up 4.2% when compared to the same period lastyear. The Company's interim Results will be announced on Tuesday 9 October 2007. Chairman Robert Peel said: "Our interim results will show encouraging progressfrom a trading perspective. In simple terms the net effect of the asset salesannounced today (apart from significant capital gain) will be to leave theCompany totally debt free at a time, perhaps when there is upwards pressure onthe cost of borrowing and downward pressure on the value of assets. Thisenvironment should give the Company acquisition opportunities going forward." Enquiries: Peel Hotels Plc Robert Peel (Executive Chairman): 0207 266 1100 KBC Peel Hunt (Nominated Adviser and Broker) Capel Irwin / Matt Goode 020 7418 8900 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Peel Hotels