Action Hotels PLC New hotel in Saudi Arabia (0533L)

TIDMAHCG

RNS Number : 0533L

Action Hotels PLC

23 April 2015

Action Hotels PLC

("Action Hotels", "Action", "the Group" or "the Company")

Action Hotels announces new three star hotel in Riyadh, Saudi Arabia

Action Hotels, a leading owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, is pleased to announce an addition to its stated hotel pipeline.

The 130-bedroom three star hotel is located in a prime location on Olaya Street in the Olaya district of Riyadh, Saudi Arabia and will be developed by the conversion of an existing office building. The Olaya district is the fast growing financial and hospitality heart of Riyadh City.

There is a limited supply of quality internationally branded economy and midscale hotels in Saudi Arabia. The Riyadh hotel market is a mature market with considerable demand from the corporate segment that has seen a sharp rise in RevPAR since 2008. Among Saudi Arabia's major cities, Riyadh achieved one of the highest Average Daily Rates in the region during 2014 (STR Global, March 2015).

Action Hotels has signed a 20 year operating lease agreement and will convert the property into a three star hotel. The project is expected to be completed within 12 months and the hotel is expected to open in Q2 2016. The expected project cost to Action Hotels is approximately US $8m and will be funded by existing cash and debt facilities available to the Group.

The new hotel will be operated by an internationally branded hotel group and Action Hotels is finalising the terms of a long-term management agreement which will be announced in due course.

The addition of this hotel in Riyadh brings Action Hotels' committed development pipeline to a total of 9 hotels with 1,514 rooms and a combined operating hotels and committed pipeline of 3,002 rooms. This is an increase of 19% on the 2,516 rooms committed at the time of IPO.

Sheikh Mubarak A. M. Al Sabah, founder and Chairman of Action Hotels stated;

"We are proud to announce this primely located addition to the Action Hotels portfolio. Saudi Arabia is an attractive market for us, being the largest country in the region and having recently undertaken a widespread, long-term strategy for non-oil economic diversification driving business travel. This new hotel is a great addition to Action Hotels' portfolio and the prime location of the property is a very strong statement for our first hotel in Saudi Arabia's capital city.

For more information contact:

Action Hotels plc +44 (0) 20 7907 9663

Alain Debare, Chief Executive Officer

Katie Shelton, Director of Corporate Affairs

finnCap (Nominated adviser & broker) +44 (0) 20 7220 0500

Stuart Andrews / Grant Bergman / Scott Mathieson

This information is provided by RNS

The company news service from the London Stock Exchange

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