AHCG.L Regulatory News (AHCG)

14 October 2014

Action Hotels PLC

("Action Hotels", "Action", "the Group" or "the Company")

Action Hotels announces partnership with Golden Tulip

for Ras Al Khaimah hotel development

Action Hotels, a leading owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, is pleased to announce that it has signed a memorandum of understanding with worldwide hotel group Golden Tulip for the operation and management of the 104-room property in Ras Al Khaimah announced on 2 October 2014.

Golden Tulip is a leading international hotel brand and part of the French hotel group Louvre Hotels Group ("Louvre"). Louvre is Europe's second largest hotel group and a major player in the international hotel industry with more than 1,100 hotels in 47 countries. Louvre owns various hotel brands across the mid-market hotel space including Campanile, Kyriad, Tulip Inn and Golden Tulip. The Tulip Inn hotel brand is well established in the Middle East with over 60 hotels in the region and is well positioned to understand the requirements of the local markets. Tulip Inn Ras Al Khaimah will be Action Hotels' first partnership with Golden Tulip. The Board of Directors believes the management and the brand benefit from a good reputation in the regional mid-market arena, have a strong understanding of local dynamics and a positive outlook of the tourism industry in Ras al Khaimah.

Amine E. Moukarzel, President of Golden Tulip MENA said, "We take this opportunity to thank Action Hotels for partnering with us on this new hotel development, Tulip Inn Ras Al Khaimah. We know the region well and are excited to be adding a 3 star hotel in Ras Al Khaimah in addition to our existing 5 star resort, Golden Tulip Khatt Springs in this area. This new hotel is ideally located and is a great addition to our portfolio and is expected to be well received by the regional travellers in a market that is currently undersupplied in the economy sector. Golden Tulip is actively working with the Ras al Khaimah Tourism authority to continue promoting the destination that has seen its local visitations grow by 31.6% between 2010 and 2012"

Action Hotels Chairman, Sheikh Mubarak A.M. Al-Sabah stated, "We are pleased to announce our first partnership with Golden Tulip for this new development in Ras al-Khaimah. Ras al Khaimah stands today as one of the UAE's strongest economic producers and we are confident that the Emirate will see continued economic growth and continue to grow as a key regional tourism destination. This new property will enable Action Hotels to fill a gap in the supply of economy and mid-market hotels and will positively contribute to our EBITDA levels starting from 2015."

For more information contact:

Action Hotels plc +44 (0) 20 7907 9663

Alain Debare, Chief Executive Officer

Katie Shelton, Communications Director

finnCap (Nominated adviser & broker) +44 (0) 20 7220 0500

Matthew Robinson / Grant Bergman / Scott Mathieson