Update on acquisition of Waves Hotel and Spa

Elegant Hotels Group plc

("Elegant Hotels" or the "Company")

Update on acquisition of Waves Hotel and Spa, Barbados

1 March 2016: The Board of Elegant Hotels announces that, further to the statement dated 8 February 2016 relating to the acquisition of Waves Hotel and Spa, Barbados (the "Acquisition"), it has received the required approval from the Central Bank of Barbados. The Acquisition is also conditional on the Company completing a credit agreement with its bankers, The Bank of Nova Scotia, which the Board expects will be concluded shortly. The Board confirms that all other arrangements are in place for completion.

For further information:

NOTES TO EDITORS:

Elegant Hotels owns and operates five luxury hotels and a beachfront restaurant, Daphne's, on the island of Barbados. The Group's portfolio comprises 483 rooms, which represents almost 25% of Barbados' quality leisure tourist room stock. Four of the five Group hotels are situated along the prestigious west coast of Barbados commonly known as the "Platinum Coast". The properties are all freehold, with a total aggregate plot size of approximately 20 acres and an aggregate beachfront of 2,300 feet. The value attributed to Elegant's portfolio as at 15 April 2015 was $235.5 million.

The Group has a strong market presence and is a profitable, cash generative and financially stable business that has enjoyed continuous growth in both revenue and EBITDA over the last three financial years. In the year to 30 September 2015, it achieved revenues of $60.1 million and EBITDA before non-recurring items of $22.2 million.

The Group's shares were admitted to trading on the London Stock Exchange's AIM in May 2015. Its objective now is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados and further into the Caribbean.

Together, the Group's five hotels - Colony Club, Tamarind, The House, Crystal Cove, and Turtle Beach - offer styles encompassing classic and contemporary, family-friendly and adults-only offerings:

Investor website: http://www.eleganthotelsgroup.com/ 

Commercial website: http://www.eleganthotels.com/