Update on administration of UK Group of Hotels plc

17 September 2014

The Hotel Corporation plc

("HCP" or the "Company")

Update on the administration of UK Group of Hotels plc

Further to its announcement of 6 August 2014, the Company today announces an update on the administration of UK Group of Hotels plc ("UKGH", formerly Puma Hotels plc), in which the Company holds a 49.92 per cent. interest. Duff & Phelps Ltd ("Duff & Phelps") were appointed as joint administrators of UKGH on 4 August 2014, following its rebranding after the acquisition of its senior debt by LSREF III Wight Limited ("Lone Star") from Irish Bank Resolution Corporation Limited

The Company has now been informed by Duff & Phelps that they have also been appointed joint administrators of 18 further subsidiaries companies of UKGH, including all of the entities holding the 21 hotels within UKGH. Accordingly, all of UKGH's assets and business, including the hotels, have now been sold in pre-packed sales to new entities which are ultimately controlled by Lone Star funds.

Duff and Phelps have advised the Company that based on the realisations from the hotels, there is not expected to be any return to the shareholders of UK Group of Hotels. At the same time they have also confirmed that UK Hotels (Finance) plc (formerly Puma Hotels (Finance) plc) has been placed in to administration and there is not expected to be any return to the bondholders.

The Company expects to announce its interim results for the six months ended 30 June 2014 later in September 2014.

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