Park Plaza Hotels expects to more than double its number of rooms with new developments signed in Russia, Croatia and the UK.

Jun 20, 08 | 1:57 am

Park Plaza Hotels is celebrating the recent signing of management contracts and hotel developments in Russia, Croatia and the UK that it expects will lead the Company to exceed the aggressive development target outlined at the time of its London AIM listing in July 2007. These recent signings are expected to more than double the current number of rooms to over 13,200 by 2012.

The deals - all signed within a few weeks of each other - include new hotel developments in Russia's premier business travel destinations such as Moscow and St. Petersburg, resort and conference hotels on the breathtaking Istrian Coast, and the Company's first art'otel in the UK in London's Hoxton area of the City. 

Boris Ivesha, President and CEO of Park Plaza Hotels comments:

"I am delighted to be able to announce such key developments for Park Plaza Hotels that not only expand our brand network into new markets but that we anticipate will exceed the goals set last July at the time of our AIM listing.  We have a commitment to our stakeholders to grow the business through contracts with reputable strategic partners and these valuable developments in key destinations are testament to that dedication.  

Park Plaza Hotels offers one of the most flexible models in the management, franchise and development market today with two brands - Park Plaza Hotels & Resorts and art'otel - providing affordable luxury to the discerning needs of the modern-day business and leisure traveller."

Russian Federation

The agreement for 15-20 new hotels (with a total of approximately 3,500-4,000 rooms) in Russia was entered into on 17 April with Ferens Management Limited (Ferens) who will develop a chain of Park Plaza branded hotels which will be operated by Park Plaza Hotels under 20-year management contracts.  Park Plaza Hotels will provide technical services to Ferens, including assisting in the identification and planning of the new hotels which are due for completion by 2012.  The hotels will be located in major Russian cities, with populations of more than 500,000, and hotels are planned for several of Russia's principal business travel destinations, including Moscow and St Petersburg.  Ferens is part of the Renova Stroygroup, one of Russia's leading development companies.

Croatia

Park Plaza Hotels entered into a long-term management agreement contract in mid April with Arenaturist Group, who own eight hotels and five apartment complexes in Pula and Medulin on the idyllic Istrian Coast of Croatia.  The accommodation currently has approximately 2,800 rooms primarily marketed to the growing numbers of leisure visitors, many of whom are international.  Several of the existing Arenaturist hotels will carry the Park Plaza Hotels & Resorts flag and offer accommodation and services in line with the core values of affordable luxury associated with the brand.  Plans are already underway to enhance and reposition the portfolio through significant investment, including possible upgrades to the conference and leisure facilities to broaden the customer base. Park Plaza Hotels has also taken a 20% stake in WM/DMREF Bora B.V. (Bora) from a group of real estate investment funds sponsored and managed by Goldman Sachs. Bora currently owns approximately 74% of Arenaturist and 100% of three related private companies.

United Kingdom

Park Plaza Hotels expect to bring its unique art'otel brand to London having entered into a joint venture in mid-March with Aldersgate Investments Limited - the property vehicle of the Reuben Brothers - to develop an art'otel in London's trendy Hoxton on the edge of the City.  The art'otel brand is built on the concept of individually themed boutique hotels, each of which pays homage to a well-know modern artist. Park Plaza Hotels and the Reuben Brothers, famous for their highly successful property developments and plethora of real estate, will both have considerable involvement in the hotel's planning and design alongside the hotel's chosen signature artist.   The hotel will offer exclusive guest rooms and suites, a restaurant and bar, two auditoriums and an art gallery, appealing to a sophisticated clientele with an interest in art and culture.

Park Plaza Hotels continues to work on its development plans with significant openings planned in Germany - Park Plaza Nuremberg (2009) and art'otel cologne (2009), Morocco - Park Plaza Marrakech (2009) and art'otel marrakech (2009) and the United Kingdom - Park Plaza Westminster Bridge London, opening in 2010 with 1,037 guest rooms and conference space for over 1,200 delegates, representing the largest new hotel development in the capital for decades.

With these committed developments, Park Plaza Hotels is on track to deliver more than the original target of 10,000 rooms by 2010, well within the timeframe.  Park Plaza Hotels is fast living up to its reputation of becoming one of the most dynamic hotel companies in the industry today.

About Park Plaza Hotels

Park Plaza Hotels Limited is owner, operator and franchisor of hotels in Europe, the Middle East and Africa.  The majority of the group's hotels operate under the Park Plaza Hotels & Resorts brand (part of Carlson Hotels Worldwide), over which the Group has exclusive rights in 56 countries in EMEA or art'otel, a brand to which the Group has exclusive worldwide rights.  Park Plaza Hotels also manages the luxury all-suite Plaza on the River - Club and Residence, London.

Through it strategic partnership with Carlson, one of the world's largest travel and hospitality companies, Park Plaza Hotels has access to Carlson's powerful reservation and distribution system, airline partnerships with 19 airlines, loyalty programmes such as goldpointsplusSM for guests and Look To Book® for travel agents, and cross-selling opportunities. 

There are currently 39 hotels and aparthotels and over 7,300 rooms in the Group's portfolio.  By 2012, the Group's committed projects and territorial franchise agreements are expected to increase the number of rooms to over 13,200.

Projects already under development include Park Plaza Marrakech (2009), Park Plaza Nuremberg (2009), art'otel cologne (2009), art'otel marrakech (2009), Park Plaza Westminster Bridge, London (2010) and art'otel London (2012).

Park Plaza Hotels floated on London's AIM Stock Market in July 2007.