New York City, for $675 million
|13 August 2004 - On 12 August 2004, Plaza Operating Partners Ltd ('POP'),
in which Millennium and Copthorne Hotels plc ('M&C') has an effective
50% interest, entered into an agreement with CPS One LLC, an affiliate
of El Ad Properties NY LLC, a US property investment company, for the sale
of The Plaza, New York (including its hotel business) and the adjoining
property for a cash consideration of $675 million (approximately #370 million),
subject to completion adjustments. Completion of the transaction
is expected to take place in late 2004.
For the year ended 31 December 2003, M&C's share of turnover from
The Plaza amounted to $58.9 million (#35.9 million) and the share
of a loss before tax was $0.9 million (#0.6 million). M&C's investment
in POP as at 30 June 2004, which is accounted for as a joint venture,
carried a share of gross assets of $238.2 million (#130.3 million) and
a share of gross liabilities of $171.3 million (#93.7 million).
Kwek Leng Beng, Chairman of M&C said: Since their appointment as the joint interim chief executive officers of M&C group in March this year, Tony Potter and Wong Hong Ren have been tasked to review the operational performance of the worldwide hotel portfolio and to assess the potential of each property in the portfolio, as well as non-core assets, with a view to improving both revenue and profit opportunities. If appropriate, disposal of any asset will be made taking into account timing and price considerations amongst other factors. We believe that the decision to sell The Plaza is in line with these considerations. Compared with the recent earnings generated by the hotel, the sale price is an attractive exit earnings multiple. The Group's strategy of being an owner of hotel assets remains unchanged, especially in an improving trading environment.'
Millennium & Copthorne Hotels plc
|Also See:||Millennium Copthorne Hotels plc Transforming into a Global Hotel Owner/Operator; Results for the Year Ended 31 December 1999 / March 2000|