RHC The Real Hotel

    RNS Number : 8684Y
  The Real Hotel Company PLC
  11 July 2008
   

    The Real Hotel Company plc
    (the "Company", "Group" or "RHC")

    Results of Extraordinary General Meeting

    At the Extraordinary General Meeting of the Company, held today, 11th July 2008, two ordinary resolutions were unanimously passed in
favour of disposing of three London hotels for �18.6m.

    The transaction is expected to complete over the next four months and generate a substantial non trading profit over book value to the
Group. The proceeds will be used to firstly reduce bank borrowings by �14.5m and secondly provide the Group with further working capital of
�3.5m after paying expenses incurred on the transaction of �0.6m.

    Peter Catesby, Chairman, commented:

    "We are pleased with this transaction which has enabled us to realise the long term value of these businesses more quickly than we
anticipated whilst continuing to aggressively develop our new purple hotel brand".

    "We regard our exit from the London market as a temporary situation. We have an active development pipeline already in place with over
2000 rooms under offer and becoming a largely de-leveraged business will enhance our ability to deliver this plan".


    Michael Prager, Chief Executive, commented:

    "In line with our declared strategy we are focusing our growth on the premium limited service sector and we will exit our full service
hotels opportunistically where the deal terms are favourable. We've considered very carefully whether exiting the London market and
including one of our new purple hotels in the transaction was in the Company's shareholders' best interests and have come to the conclusion
that exiting London for a temporary period at this time allows us to extract maximum value from this transaction whilst concentrating the
regional strengths of the brand."



    For further information please contact

 RHC plc:                   020 8233 2001
 Michael Prager, Chief Executive
 Paul Mitchell, Chief Financial Officer

 Adhoc PR       020 7483 0030
 Deborah Parritt
                

    Notes to Editors:

    The Real Hotel Company plc (RHC)

    The Real Hotel Company is more than just a name. It is a statement of the Company's core values. To deliver the rich traditions of hotel
keeping to a 21st century market in a low cost environment. In short to be real hoteliers.

    The Company is an owner, operator and developer of branded hotels in the UK and Europe and operates 58 owned, leased or managed hotels
in the UK, France, Germany and Belgium. It also operates the New Connaught Rooms conference and banqueting suite situated in London's Covent
Garden.

    The Company owns the Purple Hotels* limited service brand - 'a real hotel for the price of an inn' which differentiates itself by adding
a touch of style and cool to a sector that has, so far, defined itself only by price.

    It also operates hotels under the franchise Choice brands of Quality, Comfort and Clarion as well as six Stop Inn hotels.

    The RHC management team has considerable experience in the hotel sector. Michael Prager was Managing Director of Utell International and
held senior positions in Intercontinental and Radisson Hotel groups. Paul Mitchell was formerly Vice President of Financial Planning and
Control for Europe, Middle East and Africa at Intercontinental Hotel Group in addition to holding senior finance positions in Granada, Forte
and Allied Lyons.



This information is provided by RNS
The company news service from the London Stock Exchange
 
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