EHG.L Regulatory News (EHG)

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, AUSTRALIA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION MAY CONTRAVENE LOCAL SECURITIES LAWS OR REGULATIONS.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction in which such offer or solicitation is unlawful. Investors should not purchase any transferable securities referred to in this announcement except on the basis of the information in the admission document (the "Admission Document") published by Elegant Hotels Group Plc (the "Company") in connection with the proposed admission of its ordinary shares ("Ordinary Shares") to trading on the AIM Market of London Stock Exchange plc ("Admission"). Copies of the Admission Document are available at the registered office of the Company, subject to applicable securities laws or regulations.

Elegant Hotels Group plc

("Elegant Hotels", the "Company" and, together with its subsidiaries the "Group")

26th May 2015

First day of dealings on AIM

Elegant Hotels Group plc (AIM: EHG.L), the owner and operator of five upscale, freehold beachfront hotels and a beachfront restaurant on the island of Barbados, is pleased to announce that trading in its Ordinary Shares is due to commence on AIM today. At Admission, Elegant Hotels will have a market capitalisation of approximately £88.8 million. It is the Directors' intention that the total annual dividend payable will equate to an ongoing annual dividend yield of 7% (calculated on the basis of the Placing Price). The value attributed to Elegant Hotels' freehold properties as at 15 April 2015 is $235.5 million, with Group debt on Admission of $46.4 million representing a loan to value ratio of approximately 20 per cent.

The Company, together with Zeus Capital, has successfully raised aggregate placing proceeds of £63.0 million, including gross proceeds receivable by the Company of £32.2 million which will be used to repay approximately £27.0 million of the Group's existing debt which will reduce the Group's gearing and annual interest costs.

The balance of funds raised will be used by the Company to pay transaction related fees as well as provide additional working capital to support and implement the Group's growth strategy.

The remaining gross proceeds of £30.8 million raised via the placing are receivable by certain shareholders of the Company who have sold ordinary shares as part of the placing.

Sunil Chatrani, Chief Executive Officer of Elegant Hotels, commented:

"Our AIM listing will increase the profile of the Company and its brands and, with the funds raised via our flotation strengthening our balance sheet, also provides the platform for Elegant Hotels to pursue its longer term expansion plans in the Caribbean.

Elegant Hotels is run by a proven management team and we all remain focused on generating value for our new shareholders."

Further information in relation to Elegant Hotels, including the AIM Admission Document can be found at www.eleganthotelsgroup.com.

Enquiries:

Notes to Editors

The Company's portfolio consists of five luxury (four to five star) hotels, making up almost 25% of the quality leisure tourist room stock in Barbados, and a beachfront restaurant (together, the "Elegant Portfolio"). The hotels consist of 333 suites and 150 rooms (483 in total) situated along the west and south Barbados coastlines. Four of the five Group hotels are situated along the prestigious west coast of Barbados commonly known as the "Platinum Coast". The value attributed to the Elegant Portfolio as at 15 April 2015 is $235.5 million. The properties are all freehold with a total aggregate plot size of approximately 20 acres and an aggregate beachfront of 2,300 feet, 1,700 feet of which is on the Platinum Coast.

The Directors believe that Elegant has a number of key strengths and advantages that are important to the success of the business:

· the Group's portfolio is almost twice as large (by room number) as the closest competitor in the Barbados luxury leisure tourist market (four to five star);

· the majority of the Directors and the Group's senior managers each have over 15 years of industry experience;

· the Group is able to cater for families and adult-only customers, for all-inclusive and traditional meal plans, and offers special packages for honeymoons and weddings; and

· Elegant has a strong brand positioned in the luxury tourist market of the Barbadian hotel industry, which is recognised by tour operators and online packaged-holiday providers, and which the Directors believe offers significant potential for growth.

FORWARD-LOOKING STATEMENTS

This announcement includes forward-looking statements relating to the Group's future prospects, developments and strategies and are based on the Directors' current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements are sometimes identified by the use of terms and phrases such as "believe", "expects", "envisage", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned", "targets" or "anticipates" or the negative thereof, variations or comparable expressions, including reference to assumptions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group relating to the Group's future prospects, developments and strategies and are based on assumptions and estimates and involve risks, uncertainties and other factors that may cause the actual results, financial condition, performance or achievements of the Group or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward looking statements. No assurance can be given that such future results will be achieved. New factors may emerge from time to time that could cause the Group's business not to develop as it expects and it is not possible for the Group to predict all such factors. Each forward-looking statement contained in this announcement speaks only as of the date of the particular statement. The Company, the Directors, selling shareholders and the Nominated Adviser expressly disclaim any obligation to update these forward-looking statements contained in this announcement to reflect any change in their expectations or any change in future events or developments on which such statements are based unless required to do so by applicable law or regulation, the AIM Rules for Companies or the AIM Rules for Nominated Advisers.

Important Notices

The contents of this announcement, which has been prepared by and is the sole responsibility of the Company, have been approved by Zeus Capital Limited ("Zeus") solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended).

Neither this announcement nor any copy of it may be taken or transmitted, published or distributed, directly or indirectly, in, into or from the United States of America (including its territories and possessions, any state of the United States and the District of Columbia (the "United States" or the "US")), Australia, Canada, Japan or South Africa or to any persons in any of those jurisdictions or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction (each a "Restricted Jurisdiction"). Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian, Japanese or South African securities laws.

This announcement does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities in any Restricted Jurisdiction. The Placing and the distribution of this announcement and other information in connection with the Placing and Admission in certain jurisdictions may be restricted by law and persons into whose possession this announcement, any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Neither this announcement nor any part of it nor the fact of its distribution shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.

This announcement is directed only at persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principal or agent) for the purposes of their business and who have professional experience in matters relating to investments and are: (i) if in a member state of the European Economic Area, qualified investors within the meaning of article 2(1)(e) of the Prospectus Directive ("Qualified Investors"); or (ii) if in the United Kingdom, Qualified Investors and fall within: (a) article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"); or (b) article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order (all such persons together being referred to as "Relevant Persons"). The term "Prospectus Directive" means Directive 2003/71/EC as amended and includes any relevant implementing measures in each member state of the European Economic Area.

This announcement must not be acted on or relied on by persons who are not Relevant Persons. Persons distributing this announcement must satisfy themselves that it is lawful to do so. Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This announcement does not itself constitute an offer for sale or subscription of any securities in the Company.

The Ordinary Shares referred to in this Announcement have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The Ordinary Shares have not been and will not be approved or disapproved by the US Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Placing or the accuracy or adequacy of this announcement. Any representation to the contrary is a criminal offence in the United States.

Any subscription for or purchase of Ordinary Shares in the proposed Placing should be made solely on the basis of the information contained in the final Admission Document published by the Company in connection with the Placing and Admission. The information in this announcement is for background purposes only and does not purport to be full or complete. No reliance may or should be placed for any purposes whatsoever on the information contained in this announcement or its accuracy, completeness or fairness. The information in this announcement is subject to change. However, the Company does not undertake to provide the recipient of this announcement with any additional information, or to update this announcement or to correct any inaccuracies, and the distribution of this announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing or any transaction or arrangement referred to in this announcement. This announcement has not been approved by any competent regulatory authority.

In connection with the Placing, Zeus and any of their respective affiliates, acting as investors for their own accounts, may subscribe for or purchase Ordinary Shares and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts in such Ordinary Shares and other securities of the Company or related investments in connection with the Placing or otherwise. Accordingly, references in the Admission Document to the Ordinary Shares being offered, subscribed, acquired, placed or otherwise dealt in should be read as including any offer to, or subscription, acquisition, placing or dealing by Zeus and any of their respective affiliates acting as investors for their own accounts. In addition, Zeus or their respective affiliates may enter into financing arrangements and swaps in connection with which Zeus or their respective affiliates may from time to time acquire, hold or dispose of Ordinary Shares. Zeus does not have any intention to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.

Zeus which is authorised and regulated by the Financial Conduct Authority in the United Kingdom is acting exclusively for the Company and no one else in connection with the Placing and Admission will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing and Admission or any other matters referred to in this announcement.

Neither Zeus nor any of its subsidiary undertakings, affiliates or any of its partners, directors, officers, employees, advisers, agents or any other person accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith.

The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.

Certain figures in this announcement, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly with the total figure given.