The Hotel Corporation ( expanded and updated ).

Description :

Puma Hotels Plc operates a chain of four-star regional hotels under the Puma Hotels’ Collection name which includes such flagship properties as the Lygon Arms in Worcestershire and the Imperial hotel in Torquay. They are marketed as luxury, country, spa, coastal or historic city hotels

The company was founded in 1994 as Paramount Hotels by Michael Purtill (who now heads up Qhotels) just four months after he narrowly failed in a £65m management buy-out of his Principal Hotels group from receivership. 

Paramount was acquired in 2004 by Dawnay Shore Hotels (a vehicle set up by investment firms Shore Capital and Dawnay, Day) via the AIM-listed Hotel Corporation. By 2009, Hotel Corporation held a 49.9% stake in the business. Dawnay Shore Hotels was renamed Puma Hotels in 2008 following the collapse of Dawnay, Day.

In 2007, privately-owned Spanish hotel group Barceló signed a 45-year agreement to lease and manage the UK hotels, which took on the Barcelo brand name. The Puma Hotels’ Collection name was launched in 2012 when Barceló withdrew from its agreement.

Time Line :

THE 2010s

• November 2012 The group outlines plans to reposition its 21 hotels to highlight their individuality and local appeal to attract more leisure customers.
• September 2012 Puma reveals that it has negotiated with Irish Bank Resolution Corporation an option to extend its current debt facility until 31 December 2013. The group has debts of £300m.
• April 2012 The Puma Hotels’ Collection is launched after it takes over the 21 four-star properties previously operated by Spanish hotel company Barceló.
• April 2012 Barceló Hotels agrees to pay a £20.25m penalty fee after withdrawing early from its 45-year agreement tolease and manage Puma’s 21 hotels. Puma says it will resume operating the hotels with the transitional aid of Chardon Management (which runs 33 UK hotels) until September. It indicates that it will revive the Paramount name to replace the Barceló branding. Shore Capital continues to provide asset management services to Puma Hotels.
• November 2011 Barceló Hotels threatens to withdraw from the UK unless the rent it pays for the 21 hotels it operates is cut.
• September 2010 The Barceló Majestic in Harrogate reopens after a major fire in May that claimed the life of a kitchen porter.
• February 2010 Puma Hotels wins planning permission to develop a new 107-bedroom lodge hotel alongside Harrogate International Centre and to extend the nearby Barcelo Majestic hotel.

THE 2000s

• October 2009 The group reveals a £500,000 investment in the Barceló Apprentice Chef Academy.
• June 2009 Hotel Corporation issues new shares to pay down the debt in Puma Hotels, leaving it with a 49.9% stake in the company.
• May 2009 The group secures its mid-term future by extending its debt facility with Anglo Irish Bank to 2012.  Hotel Corporation holds 49.9% of Puma after issuing of new shares in June 2009 to pay down debt
• August 2008 Barceló becomes a Tesco Clubcard partner in a bid to generate £1.5m in new sales.
• July 2008 Dawnay Shore Hotels is renamed Puma Hotels to distance itself from the collapse of investment firm and backer Dawnay, Day Group during the credit crunch.
• July 2008 Dawnay, Day announces an emergency review of its businesses after calling in the administrators. It later insists the review will not affect its hotel interests. 
• January 2008 The UK hotels are rebranded as Barceló or Barceló Premium properties. The group also announces plans to revive its food and beverage operation with a new Mediterranean-themed menu devised in partnership with chef Phil Vickery.
• August 2007 As rumoured in July, Spanish hotel group Barceló signs a 45-year lease to manage the 21-strong Paramount chain. The move concludes the nine-month strategic review and transforms Dawnay Shore Hotels into a hotel investment company. Privately-owned Barceló, which was founded in 1931, currently operates some 130 hotels with more than 35,000 bedrooms in 14 countries. The deal completes in September.
• April  2007 The group signs a three-year marketing deal with conservation body English Heritage, starting in May. It involves special events and short-break offers and discounts to English Heritage’s 270,000 members. 
• January 2007 A number of hotel groups and private equity firms are reportedly preparing offers of between £550m and £600m for Dawnay Shore Hotels. 
• November 2006 Dawnay Shore Hotels hires financial advisers NM Rothschild & Sons and Shore Capital and Corporate to carry out a strategic review of the business that could see the hotels transferred into a REIT or sold.  It is the first UK hospitality group to publicly announce it is considering transferring its assets into a Real Estate Investment Fund.
• September 2006 Paramount announces plans to triple the number of top-end Signature-branded hotels to nine. Shrigley Hall, Walton Hall and Redworth Hall hotels are all earmarked for promotion after refurbishment.
• April 2006 The group says it is on track to achieving its target of 4,000 bedrooms within five years.
• February 2006 The group announces plans to add 200 new bedrooms to its 20 hotels, while the Lygon Arms hires celebrity chef Phil Vickery as consultant chef.
• January 2006 In a rebranding exercise, Dawnay Shore Hotels adds the Paramount name to 17 of its hotels and creates a top-tier sub-brand, Signature Hotels, for the three new Furlong hotels.
• December 2005 Dawnay Shore Hotels buys the four- and five-star Furlong Hotels group for £41m. The purchase includes the renowned Lygon Arms hotel in Worcestershire, Billesley Manor hotel near Stratford-upon-Avon, and Combe Grove Manor near Bath. 
• August 2005 Dawnay Shore Hotels clinches a £35m deal to run the UK’s first fully commercial teaching hotel in Bournemouth. The Paramount Oceanic school is scheduled to open in spring 2008.
• June 2005 Dawnay Shore Hotels buys Walton Hall near Stratford upon Avon for £15.2m. The property, which has 132 timeshare units and leisure facilities, is to undergo a £10m conversion into a 200-bedroom hotel, conference centre and spa.
• December 2004 Paramount buys three Hanover International hotels in Basingstoke, Hinckley and Daventry for £57m. The deal, which brings the hotel tally to 16, completes at the end of January 2005. The Hinckley Island hotel in Leicestershire becomes Paramount’s new head office.
• October 2004 Marston Hotels – a group of 15 three-and four-star hotels – puts itself on the market for £175m after its talks for a £150m takeover by Dawnay Shore Hotels collapse. Marston removes itself from the market in November, and is subsequently snapped up by Qhotels in November 2006. 
• August 2004 Dawnay Shore Hotels – which revealed in July that it was in talks to buy a second hotel group - is reported to be looking at Marston Hotels and Hanover International.
• July 2004 Dawnay Shore Hotels, a vehicle set up by investment firms Shore Capital and Dawnay, Day, buys the Paramount group of 13 four- and five-star hotels for £215m. It acquires both Alchemy’s 87% stake and the remaining 13% held by Paramount management. Hotel Corporation – set up to allow investors to gain an interest in Dawnay Shore Hotels – starts trading on the AIM market. Although the purchase price is £35m less than originally asked, Alchemy makes a £67m profit from its investment.
• February 2004 Quintessential buys the Crowne Plaza Midland hotel in Manchester for £34m from InterContinental Hotel Group for £34m, which is also to be managed by Paramount.
• November 2003 Despite initial interest from 50 firms, Alchemy lowers its price to £225m after a disappointing response.
• October 2003 Alchemy puts its stake in Paramount on the market for an estimated £250m.
• August 2003 Paramount sells the Old Waverley hotel in Edinburgh to Saphire Ridge for around £5.5m.
• 2003 In March, Paramount’s directors set up Quintessential Hotels (now Qhotels) which is also backed by Alchemy, following the purchase of two hotels (the Queen’s hotel in Leeds and Chesford Grange hotel near Warwick) from Le Méridien for £40m. Paramount manages the hotels in the Quintessential portfolio.
• September 2001 Paramount sells Hellaby Hall hotel in Rotherham for around £4m. It also offloads the Prince of Wales in Southport for around £5.75m during the course of the year.
• September 2000 Paramount puts its four-star, 52-bedroom Hellaby Hall hotel in Rotherham, South Yorkshire, on the market.
• July 2000 Alchemy puts £6m in the pot towards the £12m acquisition of the Oxford Moat House hotel, which is to benefit from a £7m refurbishment.

THE 1990s

• August 1999 Alchemy provides £14m for the £57m takeover of Scottish Highland Hotels, which adds seven two- and three-star hotels to the group. They include the four-star Carlton hotel in Edinburgh, Redworth Hall in County Durham, Marine in Troon, and Stirling Highland hotel and two three-star properties - the Old Waverley in Edinburgh and the Buchanan Arms near Glasgow.
• April 1999 Paramount buys the 152-bedroom Old Ship in Brighton for around £5.5m.
• June 1998 UK venture capitalist Alchemy Partners invests £27m in a £77m buy-out of Advanced Synergy’s stake in Paramount following its £34m acquisition of three former Forte hotels – the five-star Imperial in Torquay, the Blackpool Imperial and the Majestic in Harrogate. The acquisition boosts its portfolio to eight hotels.
• July 1997 Alangka-Suka International - a division of Malaysian-owned Advanced Synergy Berhad - buys out Schroders’ 87% stake for £37.5m.
• March 1997 Rumours grow that the five-strong Paramount group is for sale as property agent JLW Hotels prepares a brochure to approach prospective buyers. Purtill claims the group is seeking funding for acquisitions from South-east Asia.
• April 1996 Purtill abandons his bid for the Norfolk Royale in Bournemouth after learning it is to lose a substantial corporate client.
• February 1995 Paramount buys the Cheltenham Park hotel for around £5m and plans a £1m refurbishment. 
• July 1994 Paramount is trumped in its bid for Rank Hotels’ Unicorn hotel in Bristol by Jurys Hotel Group.
• August 1994 Purtill plans to float on the stock market when Paramount reaches 15 to 20 properties.
• July1994 Paramount is founded by Michael Purtill with the £16m purchase of four hotels– the Angel in Cardiff, Shrigley Hall in Cheshire, the Palace at Buxton and the Prince of Wales in Southport. The move comes less than four months after Purtill narrowly fails in a £65m management buy-out from receivership of the 22-strong Principal Hotels group he founded. Schroders Ventures (which was involved in the attempted management buy-out of Principal Hotels) takes a 75% stake in Paramount, after providing 45% (or £7.35m) of the funding. 

Financial Snapshot :

Full year (ending 31 December 2011)Turnover £31.4m*
Operating profit -£175m
Net profit £5.5m (2010: £6.3m)
* includes £30.3m rent from Barceló Hotels


Half year (ending June 30 2012)Turnover £25.9m (2011: £15.4m)
Operating profit £16m (2011: -£300,000)
Net profit £16m (2011: -£276,000

Operating Data :

Number of UK hotels 21 four-star hotels (September 2012).
Bedrooms 2,859
Conference and meeting space 20,000 sq metres
Facilities also include health clubs, spas and beauty rooms, and golf (at two hotels)

Basingstoke Country Hotel, Hampshire
Combe Grove Manor Hotel, Bath
Imperial Hotel Torquay, Torquay
Old Ship Hotel Brighton, Brighton
Billesley Manor Hotel, Nr. Stratford-Upon-Avon
Cheltenham Park Hotel, Cheltenham
Daventry Court Hotel, Northamptonshire
Hinckley Island Hotel, Leicestershire
Lygon Arms, Broadway, Worcestershire
Oxford Hotel, Oxford
Walton Hall & Hotel, Wellesbourne, Warwickshire (operate as two hotels)
Redworth Hall Hotel, County Durham
Shrigley Hall Hotel, Golf & Country Club, Cheshire
Imperial Hotel Blackpool, Blackpool
Majestic Hotel Harrogate, Harrogate
Palace Hotel Buxton, Derbyshire
Carlton Hotel Edinburgh, Edinburgh
Marine Hotel, Troon
Stirling Highland Hotel, Stirling
Angel Hotel, Cardiff

Key People :

Chairman Howard Shore
Director Peter Procopis
Chief executive officer Fredrik Korallus
Commercial and financial director Paul Nisbett
Group operations director Nick Gamble

Hotel Corporation plc - extension of debt facility

The Hotel Corporation plc ("HCP")

1st July 2013

Puma Hotels plc announces extension of its debt facility

The Hotel Corporation PLC (the "Company" or "HCP"), an AIM listed investment company owning 49.9% of Puma Hotels plc ("Puma", or the "Group"), today announces that the directors of Puma have informed the Company that Puma has today made an announcement on the extension of its senior debt facility, the full text of the Puma announcement is reproduced below:

Puma Hotels, one of the UK's leading four star hotel owners and operators, today announces that it has successfully completed the extension of its £323 million senior debt facility with Irish Bank Resolution Corporation in Special Liquidation ("IBRC").

The refinancing of the loan provides committed funding for the 21-strong four star hotel group which employs more than 2,300 staff across its portfolio.

New terms have been agreed until 30 May 2014 with revised covenants to reflect the current operating environment.

Puma Director, Peter Procopis, said: "We are delighted to have agreed an extension of the loan facilities with IBRC. We see this is a significant vote of confidence in both the Group and the quality of management team recruited since operational control of the hotels was taken back in April 2012."

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Dawnay Day Group / Carpathian

European property trust Dawnay Day Carpathian has severed its relationship with former parent company Dawnay Day Group, completing a management buy-out.

The Dawnay, Day Carpathian PLC (DDC) 

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 fund will be renamed Carpathian with 50% of shares owned by management, significantly higher than the originally proposed 9.9%.

The remaining 50% will be owned by a new company managed by the two principals of the Dawnay Day property holding company Dawnay Day PanTerra.

Analyst Panmure Gordon reiterated its ‘buy’ recommendation on the trust, saying that at a 64% discount to net asset value at 46.3p, shares looked heavily oversold.

‘We believe that the group has been proactive in making changes, which should be seen as positive by investors. In our opinion, the stock is too cheap at current levels and we maintain our Buy recommendation.’

The sprawling Dawnay Day empire has struggled to liquidate assets in recent weeks as it attempted to meet creditor demands for cash and administrators have been appointed to several subsidiary companies.

Without citing sources, weekend papers said the remains of the £2 billion company, owned by Guy Naggar and Peter Klimt, had been put under the control of BDO Stoy Hayward

Charirman of Carpathian Rupert Cottrell said: ‘This new portfolio management agreement is very positive indeed and we look forward to continue working with our existing team headed by Paul Rogers and Massimo Marcovecchio. 

'The employees of Carpathian Asset Management have a track record of being one of the leading property teams focused in the CEE [central and eastern Europe] region with their ability to deliver in a marketplace that presents significant opportunities.’

The deal will also include several 75% holdings in subsidiary property management businesses in Romania and Hungary who operate Carpathian’s development programme.

Dawnay Day / Trevaria

  Similar story  of break-up and nice profits achieved by breaking up the group .

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• January 2007 A number of hotel groups and private equity firms are reportedly preparing offers of between £550m and £600m for Dawnay Shore Hotels. 
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• Today  the portfolio would realise about £494 , under my estimations . Less of course £325 million debt .

      

 That leaves valuation of £169 million ( our share £84 ( possible £91 million )) .Just a few bob more than current valuation £1.6 million. 

  Keep a close watch out for underhand dealings ,with all this unrealised value , some skulduggery may be anticipated .

 Ask yourself the question why have Shore being buying back in ?

 Will IBRC continue to back HCP ?

 Remember Carpathian and Trevaria ,have performed very well since the break up their of asset portfolio.

 HCP , should follow the same path to asset realisation.

 I shall continue to hold , through oscillations of market dealing , for an expected brighter future .

(Bovey Castle, the 64-bedroom country house hotel within Dartmoor National Park, has been put on the market for £17.5m – nearly £10m less that its current owners paid for the property six years ago. Property investment company Delancey bought the hotel from Peter De Savary in 2006, for £26.4m.)