ATLANTA, Jan. 18, 2000 - Bass Hotels Resorts today announced
that one of its affiliate companies, Bass Overseas Holdings, Limited has
entered into an agreement with business interests of the Pritzker family
to purchase the share capital of Hale International Limited (Hale) which
owns, leases, manages or franchises 59 hotels throughout the Asia pacific
region through its subsidiary the Southern Pacific Hotels Corporation (SPHC).
| The agreement includes 24 hotels
in Australia (including 6 owned or leased) plus 13 hotels in New Zealand,
8 in the Southern Pacific Islands and 14 in the rest of Asia. SPHC owns,
leases, manages or franchises under the Parkroyal and Centra brands with
5 hotels currently unbranded. |
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The consideration, which is to be settled in cash, is $A 313.1 million
(128 million pounds sterling at Friday, 14 January 2000 exchange rate)
and excludes the Travelodge business which will continue to be operated
by the business interests of the Pritzker family. The acquisition will
be earnings enhancing pre goodwill amortization from the outset and will
cover Bass� WACC from the second year.
Bass Hotels Resorts (BHR) operates a 102-strong hotel portfolio in the
region under the Inter-Continental, Crowne Plaza and Holiday Inn brands
and this purchase confirms Bass Hotels Resorts as the largest hotel company
in the growing Asia Pacific market with 161 hotels and over 40,000 rooms.
Commenting on the deal, Tom Oliver, chairman and CEO of Bass Hotels Resorts
said, �This is an excellent opportunity for Bass to strengthen our number
one position in the Asia Pacific market. We are looking forward to working
with the owners of the hotels to build the returns as the properties are
incorporated into Bass� global reservations system. Our customers will
experience improved benefits through the linking of BHR�s customer frequency
program, �Priority Club� with SPHC�s �Pacific Privilege�.
�This agreement will afford Bass Hotels Resorts unprecedented growth
in its hotels distribution in the Asia Pacific region,� Tom Oliver continued.
�SPHC is the second largest hotel operator in Australia and 10th largest
across the Asia Pacific region. The hotels are well managed and the current
branding has established a good reputation in the regional markets. There
is clear opportunity to build upon this strength by introducing Bass Hotels
Resorts world-class global brands to the properties.�
Bass Hotels Resorts(SM), the hotel business of Bass PLC (NYSE: BAS)
of the United Kingdom, operates or franchises more than 2,800 hotels and
450,000 guest rooms in more than 90 countries and territories.
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Business Interests of the Pritzker Family
Reach Accord with Bass PLC Regarding the Sale of Southern Pacific Hotel
Group�s Centra and Parkroyal Brands
CHICAGO, Jan. 17, 2000 - Business Interests of the Pritzker
family of Chicago, Ill., (Pritzker Interests) announced today an agreement
to sell to Bass PLC (Bass Hotels Resorts) all of the outstanding share
capital of Hale International Limited which through its Southern Pacific
Hotel Corporation (SPHC) group subsidiaries owns, leases, manages and franchises
hotel properties in the Asia Pacific region under the brand names Centra
and Parkroyal.
A spokesman for the Pritzker Interests said, �The SPHC
hotels have developed a good reputation in the Asia Pacific markets and
we hope that they benefit from this new association with the Bass Hotels
Resorts� brands and systems.� The transaction is subject to customary conditions,
including receipt of certain government approvals.
Prior to the consummation of the sale transaction with
Bass, the Travelodge brand and related assets will be transferred to other
Pritzker Interests which will retain ownership. The Travelodge brand in
the Asia/Pacific region will continue to be pursued as a major development
program in Australia and New Zealand. Travelodge properties being developed,
owned and operated by Pritzker Interests will produce a total of 1,080
rooms open by June, 2000. An additional 6 properties currently under development
will increase the total number of rooms to 1,985 by May, 2002. In Australia
and New Zealand the group expects to have a portfolio of 35 Travelodge
properties with a total of nearly 5,000 rooms within the next five years.
On the other side of its growing hotel portfolio, the
Pritzker Interests have fully endorsed aggressive pursuit and expansion
of Hyatt International�s five-star hotel and resort operations in the Asia/Pacific
region and worldwide. There are 191 Hyatt Hotels and Resorts around
the world. Hyatt International, through its subsidiaries, operates 59 hotels
and 20 resorts in 35 countries, with an additional 25 hotels under development.
In connection with the foregoing, Hyatt�s Asia Pacific operation includes
9 hotels currently operating in Australia and New Zealand and 39 hotels
in Asia.
Contact:
Cristina Tabora
The Pritzker Organisation,
312-750-8330
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