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of Golden Tulip Hospitality; Partnership Will Comprise 534 hotels in 45 Countries |
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| Sydney (Australia), Amersfoort (The Netherlands), 17th January 2005
� ASX listed Tourism Hotels & Leisure (�THL�) (formerly Travel Holdings
Limited) and Golden Tulip Hospitality B.V. (�Golden Tulip�), based in The
Netherlands, today announced that the companies have entered into a strategic
partnership involving a cross shareholding structure that will see the
new combined group become one of the largest operators of hotels in the
world, with properties located in five continents.
Under the terms of the Agreement executed by both companies, THL will acquire a 30% stake in Golden Tulip�s share capital through a mix of THL shares and cash which values Golden Tulip at approximately Euro 18.5 million. The share consideration will see Golden Tulip take up a 19.9% equity stake in THL. In addition, THL has the option to acquire an additional 18% equity stake in Golden Tulip in two tranches exercisable over the next two years subject to certain conditions. The strategic partnership between Golden Tulip and THL will comprise 534 hotels, 52,150 hotel rooms, located in 362 cities in 45 countries. With reference to the latest publicly available information, the companies believe that the combined group will rank the 11 th largest hotel organization worldwide (based on number of hotel properties under management and franchise) or the 16 th largest hotel organization worldwide (based on number of rooms under management and franchise). As part of the Agreement, Golden Tulip will extend its marketing and distribution platform to THL�s portfolio of Pacific International Hotels, Pensione Hotels and the company�s recently acquired Plaza Hotels chain. Pacific International Hotels comprises 21 hotels, suites, resorts and apartments in the deluxe and superior first class category located in Australia, Thailand and China. Plaza Hotels is a group of 30 hotels located mainly in regional Australia in the mid market category. Golden Tulip Hospitality B.V. owns and franchises the brands Golden Tulip and Tulip Inn. The current portfolio comprises some 251 hotels with 27.500 rooms in 37 countries. Through its hotel management business, Golden Tulip operates thirteen hotels and four conference centres. The Agreement will see each company provide assistance to the other in order to facilitate the growth of Golden Tulip and Pacific International Hotels as genuine global brands. Specifically, THL will become Golden Tulip�s development partner for the Asia Pacific region, through which the parties envisage an additional 40 new Golden Tulip Hotels, Inns & Resorts within five years. The companies are also in the process of finalizing an agreement which will see a subsidiary company of Golden Tulip appointed as the sole and exclusive hotel development, marketing and commercial representative of the Pacific International brand in Europe. The brands Golden Tulip and Tulip Inn represent the four and three star category respectively. Golden Tulip has set as its strategy to create a multi-brand company, which aims to cover a scope of brands ranging from one star to five stars in traditional hotels, suites and long-stay accommodation and potentially other niche markets, such as boutique or lifestyle hotels. In light of these developments, the Pacific International brand will take a position in the moderate deluxe and superior first class �Suites & Apartments� category. In an effort to fulfil its strategy, Golden Tulip has previously entered into commercial alliances with the following companies:
THL is currently the owner of fours brands, Grand Pacific Suites & Resorts, Pacific International Suites & Apartments, Pensione and Plaza Hotels. Grand Pacific Suites & Resorts is positioned in the deluxe category, Pacific International Suites, Apartments and Resort is positioned in the moderate deluxe and superior first class category. Pensione Hotels are positioned in the superior tourist class category and Plaza Hotels is positioned in the first class category located in popular regional centres and holiday areas. THL�s objective was to form a strategic partnership with a successful international hotel company with a sophisticated global sales and marketing distribution platform in order to expand its portfolio. THL�s expansion is targeted both in the Asia and Pacific Region but a primary focus with an eye in the high potential markets of Asia. Mr Hans W.R. Kennedie, President & CEO of Golden Tulip Hospitality B.V., said, �I am delighted about this agreement with THL � it represents an important step in the history of our company. Both Golden Tulip and THL share a common vision to become truly global players in the hotel and accommodation industry. This arrangement provides mutual benefits to assist each company in realising this vision.� Mr Simon Wan Joint Managing Director of THL said, "We are extremely pleased to have entered into this agreement with Golden Tulip, a company whose operations and geographical footprint complement those of THL. As a result, THL is now the only ASX-listed hotel and tourism company with a global hotel operating and franchise platform deriving earnings from operations in Asia Pacific, Europe, the Middle East, Africa and the Americas.� Mr Nigel Corne Joint Managing Director of THL added, �For some time, we have been seeking to identify a global partner to assist in the continued expansion of our successful Pacific International brand. The agreement with Golden Tulip represents a significant step in the development of Pacific International as a truly global hotel and accommodation provider.� Mr Dan Larkin, Non � Executive Director of Golden Tulip Hospitality B.V. confirms: �The match between THL and the Golden Tulip Group is complementary and we are confident that our partnership will successfully lead the group to becoming a strong global hotel company.� Pursuant to this transaction, Messrs Hans Kennedie and Dan Larkin will be appointed to the THL Board of Directors. THL Chairman Mr George McMaster and Mr Wan have been appointed to the Supervisory Board of Golden Tulip. The Agreement is effective immediately and is expected to become fully
operational during the first quarter of calendar year 2005. All hotels
within the group will begin to experience the synergy benefits of using
shared platforms and the enhanced global reach of the two groups from the
second quarter of calendar 2005 onwards.
About Tourism Hotels & Leisure Tourism Hotels & Leisure Limited with its head office based in Sydney, Australia is an accommodation management company listed on the Australian Stock Exchange (code: TRV). The key business assets of the company are the intellectual properties, operating system and management agreements of Grand Pacific Suites, Pacific International Hotels and Pensione Hotels located in Australia in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth, as well as Shanghai, China and Phuket, Thailand. The company also recently acquired Plaza Hotels, comprising a group of 30 hotels in the mid market category, mainly located in regional Australia. THL currently manages 51 hotel properties located in 32 cities in 3 countries with 4,600 rooms. About Golden Tulip Hospitality B.V. Golden Tulip Hospitality B.V. with its head office based in Amersfoort, the Netherlands, is the owner of Golden Tulip Hotels, Inns & Resorts, franchising some 251 hotels across 37 countries, with the majority of hotels being located in urban destinations across Europe, the Middle East & Africa. Through its commercial alliance with TOP International Hotels, a German based hotel consortium and the B & B Group, the combined portfolio comprises over 47,500 rooms in approximately 483 hotels. Golden Tulip offers a unique franchise concept for two brands, designed to implement international standards, whilst maintaining local flavours: Golden Tulip for the four star business and resort hotels and Tulip Inn for the three star category. TOP International Hotels offers hotel reservations, marketing and sales services to independent hotels. B&B Hotels are comfortable two star hotels throughout France and Germany. EuroTulip Hospitality Management B.V., a subsidiary of Golden Tulip Hospitality B.V., operates seven Golden Tulip and Tulip Inns in the Netherlands. |
| Contact:
Ms. Rachna Taneja � Strategic Development Director
Ms Fiona Godfrey
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