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do Lago, Algarve, Portugal for $40 million; 16 times Current Year EBITDA |
from Prince Khalid bin Fahd Al Faisal
Mr James B Sherwood, Chairman, said that the primary purpose of the hotel sale and sale of common shares is to raise additional capital for purchase of hotels and related businesses and to fund capital investment in some existing owned properties. The Hotel Quinta do Lago sale was considered appropriate in that this property lacked its own golf course while intensive development of small homes in the area has put enormous pressure on the nearby golf courses for start times. Another luxury hotel with its own golf course is currently under construction on the same estate. A significant gain on sale of the hotel will be realized and be included in fourth quarter results. Mr Simon Sherwood, President, said that the company has a number of interesting investment opportunities which are under negotiation and also wishes to fund an annex building for its Windsor Court Hotel in New Orleans and a large spa at Reid's Palace Hotel in Madeira. In order to complete these investments without straining equity to debt ratios the board has deemed it prudent to raise a moderate amount of additional capital. The company currently has 30.8 million shares outstanding so the sale of 3 million additional shares would increase the shares outstanding by 10%. The registration statement relating to the offering has been filed but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. |
Contact:
www.orient-express.com |