9th Aug 2006 14:23
Quintain Estates & Development PLC09 August 2006 9 August 2006 Quintain Estates & Development PLC ('Quintain' / 'Company') QUINTAIN SIGNS MANAGEMENT DEAL WITH HILTON TO CONSTRUCT NEW WEMBLEY HOTEL Simultaneous acquisition of existing Wembley Plaza hotel Quintain is pleased to announce that a number of its wholly owned subsidiarieshave signed a conditional long term management agreement with HiltonInternational for the construction of a new 400 bedroom full service hotel atWembley. The new hotel is scheduled to be completed by 2010 and will be operatedby Maple Hotels Management Company Limited, a wholly owned subsidiary of HiltonHotels Corporation (NYSE:HLT). In addition to the new hotel, the transaction includes the purchase of WembleyPlaza, an existing 306 bedroom Hilton property. This will continue to beoperated under a short term management agreement by Comfort Hotels Limited, awholly owned subsidiary of Hilton Hotels Corporation and then the site will formpart of the redevelopment of the western section of Wembley, after 2010. The total transaction value is £103 million, comprising £91.5 million of newbuild costs and a payment of £11.5 million for the acquisition of the WembleyPlaza hotel. This sum also includes refurbishment costs of £1.5 million. It isthe Company's current intention that both the purchase price payable atcompletion and the construction cost will be funded from the Company's existingbank facilities. In the event that the construction of the new Hilton hotel hasnot commenced by December 2009, a sum of £4 million of deferred considerationwill then be payable to Hilton for the Plaza hotel. The forecast trading profits of the Wembley Plaza hotel for the first full yearof operation to 31st December 2007 are £1.2 million. Nick Shattock, Quintain's Deputy Chief Executive, commented: "The signing of a long term agreement with Hilton for the new full service hoteland our simultaneous acquisition of their existing Wembley Plaza property marksanother significant step forward for our regeneration of Wembley. We willcontinue to seek high quality international partners such as Hilton and LiveNation, with whom we signed a 15 year management contract for the Arena inJanuary, in order to ensure Wembley takes its deserved place as a world-classleisure and retail destination for visitors from all over the world." Quintain also confirmed today that 129 reservations with deposits paid have beenreceived for the 143 private apartments currently under construction at Wembleyin partnership with Genesis and Family Mosaic Housing Associations. The 143apartments are part of a mixed-use development to the west of the Arena,comprising a total of 286 apartments of which 48% are affordable and will bedelivered in joint venture with Genesis and Family Mosaic Housing Associations.Additional facilities include retail, leisure and community space, totalling13,000 sq ft. For further information, please contact: Nick Shattock / Rebecca Worthington Quintain Estates and Development PLC Tel: 020 7478 9418 Stephanie Highett / Dido Laurimore Financial Dynamics Tel: 020 7831 3113 Katrina Jones Director of Communications Hilton UK & Ireland Tel: 020 7856 8313 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Quadrise