HALS21 Oct 2011 08:11
SIGNING OF THE MAJOR TRANSACTION WITH FAIRMONT HOTELS & RESORTS
MOSCOW, RUSSIA - October 21, 2011 - HALS-Development (LSE, MICEX, RTS: HALS), a major Russian real estate company, announces that on October 19, 2011 it's Subsidary - JSC «Hotel «Peking» has signed the major transaction with Fairmont Hotels & Resorts (owned by FRHI Holdings Limited, a leading global hotel company with over 100 hotels under the Fairmont, Raffles, and Swissôtel brands) in the amount of RUR 650 658 516, including:
1) Trademark sub-license agreement for Fairmont Pekin, Moscow, whereby Sub-Licensor grants to
Sub-Licensee (JSC «Hotel «Peking») and Sub-Licensee accepts a limited, non-exclusive, non-transferable, non-assignable and not further-sublicensable right and (sub-) license to use the Trademarks: FAIRMONT Stylized, WILLOW STREAM, FAIRMONT, solely in connection with the exploitation of the Hotel Peking and solely during the validity period of the Trademarks and in the Licensed Territory (Russia).
2) Hotel management agreement for Fairmont Pekin, Moscow, whereby Owner (JSC «Hotel
«Peking») engages Operator as the exclusive operator and managing agent of the Hotel Peking during the Operating Term and Operator hereby accepts such engagement. Subject only to the provisions of this Agreement Operator shall have exclusive control, discretion and authority with respect to, and be responsible for, the Operation of the Hotel. Contract validity period - the date following completion of the project, upon which the Hotel opens for business to the general public, which shall be a date mutually determined by the Parties, and ending on December 31 of the twenty-fifth complete calendar year.
3) Centralised services agreement for Fairmont Pekin, Moscow, whereby the Services Provider
(1) provides Owner (JSC «Hotel «Peking») with Centralised Services (services which are (i) mandatory for substantially all of the Operator Hotels, and (ii) additional or optional, but which Owner each year approves for the Hotel), (2) provides Owner with access to the Global Reservations System, (3) reviews and approves all Capital Improvements, (4) directs Hotel Purchases. Contract validity period - the date following completion of the project, upon which the Hotel opens for business to the general public, which shall be a date mutually determined by the Parties, and ending on December 31 of the twenty-fifth complete calendar year.
4) Technical services agreement for Fairmont Pekin, Moscow, whereby Consultant shall from outside
of the Jurisdiction provide Technical Services to Owner (JSC «Hotel «Peking») and Owner shall pay Consultant for the Technical Services. Contract validity period -not later than January 01, 2019.