3 Apr 2017 07:00
This announcement contains inside information
3 April 2017
Elegant Hotels Group plc
Acquisition of Treasure Beach Hotel in Barbados
Elegant Hotels Group plc ("Elegant Hotels" or the "Group"), the owner and operator of six upscale freehold hotels and a beachfront restaurant on the island of Barbados, is pleased to announce that, through its subsidiary Treasure SL1 Limited, it has entered into a conditional agreement to acquire the entire issued share capital of Treasure Beach Limited, which holds the business, freehold property, and assets of Treasure Beach Hotel in Barbados ("Treasure Beach"). The consideration and renovation costs are expected to be approximately US$10.5 million in aggregate.
Treasure Beach is a 4-star, 35-room hotel in Paynes Bay, in the parish of St. James in Barbados. It is the adjoining property to Elegant Hotels' Tamarind hotel, which in turn is situated next to Daphne's and The House, which are also owned by the Group. As a result, the acquisition will mean that four of Elegant Hotels' properties will account for a continuous 300 metre stretch of the prestigious west coast, or "Platinum Coast", of Barbados. Treasure Beach occupies around 1.18 acres of land, and its amenities include a swimming pool, spa, and restaurant.
The agreement to acquire Treasure Beach is conditional upon completion of a credit agreement with the Group's bankers, The Bank of Nova Scotia. The condition is expected to be satisfied before the end of April 2017.
The hotel will be operated under the existing brand until the end of July 2017 whereupon it will be closed. It will be refurbished, repositioned and ultimately repriced before being rebranded as 'Treasure Beach by Elegant Hotels', and it is expected to re-open for business at the start of November 2017. The Group plans to operate Treasure Beach as an adults-only European Plan hotel with an emphasis on a high-quality food offering. Guests of Treasure Beach will also be able to make use of the facilities of the neighbouring Tamarind hotel.
The consideration and renovation costs will be funded by a combination of operating cashflow and US$8.0 million from the Group's existing credit agreement with The Bank of Nova Scotia. The acquisition agreement contains customary warranties and indemnities.
The Group expects Treasure Beach to be earnings enhancing for the 2017/18 financial year.
Commenting on the news, Sunil Chatrani, CEO of Elegant Hotels, said:
"Treasure Beach is a resort that we know very well, given its close proximity to a number of our other sites, and it is an extremely attractive property that has been a long-term target for the Group. We are therefore delighted to be acquiring it, given the clear potential for operational and financial synergies, and look forward to integrating it into our portfolio. More broadly, this should be taken as a clear sign that Elegant Hotels is more committed than ever to executing its long-term expansion strategy."
For further information:
Elegant Hotels Group plc Sunil Chatrani, Chief Executive Officer Jeff Singleton, Chief Financial Officer
| +1 246 432 6414 |
Zeus Capital Limited Dan Bate / Andrew Jones (NOMAD)John Goold (Broker)
| +44 (0) 203 829 5000 |
Powerscourt Rob Greening / Lisa Kavanagh Email: eleganthotels@powerscourt-group.com
| +44 (0) 207 250 1446
|
NOTES TO EDITORS:
Elegant Hotels owns and operates six luxury hotels and a beachfront restaurant, Daphne's, on the island of Barbados. The Group's portfolio comprises 553 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Five of the six properties 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 22 acres and an aggregate beachfront of 2,500 feet. In the year ended 30 September 2016, the Group achieved revenues of $57.0 million and EBITDA before non-recurring items of $19.6 million.
Together, the Group's six existing hotels - Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa - offer styles encompassing classic and contemporary, family-friendly and adults-only.
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, as exemplified by its recent signing of a management contract with Hodges Bay Resort & Spa in Antigua.
Investor website: http://www.eleganthotelsgroup.com/
Commercial website: http://www.eleganthotels.com/