Hotel Properties to book S$29m gain from disposal of stake in 2 JV companies

HOTEL Properties H15 has, through its 80 per cent-owned joint venture (JV) company HPL Olympia, entered into a share purchase agreement with an unrelated party to sell its entire 100 per cent stake in the share capital of 2 JV companies - HPL (Olympia) and Maple Olympia Propco 4 S.à.r.l.

In a bourse filing on Saturday (Apr 9), Hotel Properties said the total consideration of the transaction is £40.8 million (S$72.4 million), and the sale of the ownership interest will result in a gain of about S$29 million for the group.

The cost of the transaction was negotiated at arm's length on a "willing buyer and willing seller" basis and will be satisfied wholly in cash, said Hotel Properties.

Maple Olympia Propco 4 S.à.r.l is a private limited company incorporated in Luxembourg, and owns the Hilton London Olympia. This hotel has 405 keys and is located near to the Olympia Exhibition Centre at the western end of Kensington High Street.

HPL (Olympia) is the Hilton Hotel Olympia operating company which leases the property from Maple.

Following the disposal, both HPL (Olympia) and Maple Olympia Propco 4 S.à.r.l will cease to be indirect JV companies of Hotel Properties.

This transaction is not expected to have any material effect on the net tangible asset value per share of Hotel Properties based on the audited consolidated accounts for the year ended Dec 31, 2021.

Shares of Hotel Properties ended Friday at S$3.57 on a cum dividend basis, up 0.3 per cent or S$0.01.