Elegant Hotels Group PLC Update on Hodges Bay Resort & Spa (8684E)
July 09 2019 - 4:31AM
UK Regulatory
TIDMEHG
RNS Number : 8684E
Elegant Hotels Group PLC
09 July 2019
9 July 2019
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Elegant Hotels Group plc
Update on Hodges Bay Resort & Spa in Antigua
The Board of Elegant Hotels Group plc ("Elegant Hotels", the
"Company" or the "Group"), the owner and operator of seven upscale
freehold hotels and a beachfront restaurant on the island of
Barbados, today announces an update in relation to Hodges Bay
Resort & Spa in Antigua ("Hodges Bay").
Hodges Bay, which was originally due to open in July 2017,
remains incomplete due to ongoing issues with the construction of
the property, which are outside of Elegant Hotels' control.
However, Hodges Bay was being operated by Elegant Hotels on a
partially open basis.
The Company confirms that, although the operating term of the
management contract has not commenced, it has now received a
termination notice in relation to the management contract. The
Company disputes the validity of this termination notice and
intends to take all action necessary to preserve shareholder
value.
The Company can confirm that it has approximately $1.7m of
balances outstanding in relation to Hodges Bay; being $1.5m in the
form of a loan to the Hodges Bay management company, and $0.2m of
unpaid technical service fees. Under the terms of the management
contract, the loan is now immediately repayable to the Company
following receipt of the termination notice.
The Group's outlook for FY2019 and FY2020 remains unchanged.
For further information:
Elegant Hotels Group plc
Sunil Chatrani, Chief Executive Officer +1 246 432 6500
Jeff Singleton, Chief Financial Officer
Liberum Capital Limited (NOMAD and Broker)
Clayton Bush / Chris Clarke / William Hall +44 (0) 203 100
2222
Powerscourt
Rob Greening / Lisa Kavanagh / Jana Tsiligiannis +44 (0) 207 250
1446
Email: eleganthotels@powerscourt-group.com
Notes to Editors:
Elegant Hotels owns and operates seven luxury freehold hotels
and a beachfront restaurant, Daphne's, on the island of Barbados.
The Group's portfolio currently comprises 588 rooms, making it
twice as large (by room number) as the closest competitor in the
Barbados luxury hotel room market. Six of the seven 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 23 acres and an
aggregate beachfront of 2,600 feet.
In the year ended 30 September 2018, the Group reported revenue
of $62.9 million and EBITDA before non-recurring items of $19.7
million.
Together, the Group's seven existing hotels - Colony Club,
Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel &
Spa and Treasure Beach - offer styles encompassing classic and
contemporary, family-friendly and adults-only.
The Group's strategy is to leverage its position as a leading
hotel operator in Barbados and to expand both on Barbados as well
as further into the Caribbean.
Investor website: http://www.eleganthotelsgroup.com/
Commercial website: http://www.eleganthotels.com/
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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