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PPHE Hotel Group has announced that it has begun a strategic review that will consider options ranging from introducing new capital to a potential sale of part or all of the company.
The group, which owns and operates hospitality real estate across Europe, confirmed that the review will take account of shareholder and stakeholder views.
Major shareholders Eli Papouchado and Boris Ivesha, who together hold about 44% of voting rights, are supportive of the process. Rothschild has been appointed as financial adviser.
The review includes the launch of a formal sale process under the UK Takeover Code.
PPHE said that it is not in active discussions with any potential bidder and has not received an approach.
Interested parties will be invited to enter non-disclosure and standstill agreements before gaining access to further information. The Takeover Panel has granted dispensations from certain disclosure rules to allow the targeted process to proceed.
PPHE’s portfolio has an estimated value of £2.2bn and includes primarily freehold and long leasehold assets.
Its operations cover full-service upscale and lifestyle hotels, resorts and campsites. The group holds a perpetual licence from Radisson Hotel Group to develop and operate the Park Plaza brand in Europe, the Middle East and Africa, and wholly owns Art’otel.
It also controls Arena Hospitality Group, which is listed in Zagreb.
The PPHE board said: “The board reserves the right to alter any aspect of the process as outlined above or to terminate the process at any time and in such cases will make an announcement as appropriate. The board also reserves the right to reject any approach or terminate discussions with any interested party at any time.”
