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17/01/2000

Bass PLC Establishes Clear Leadership in Asia Pacific Hotel Market with Additional 59 Hotels

Bass PLC Establishes Clear Leadership in Asia Pacific Hotel Market with Additional 59 Hotels

Bass PLC (Bass) today, 17 January 2000, announces that it has entered into an agreement with business interests of the Pritzker family to purchase the share capital of Hale International Limited (Hale) which owns, leases, manages or franchises 59 hotels throughout the Asia Pacific region through its subsidiary the Southern Pacific Hotels Corporation (SPHC) and related entities. The agreement includes 24 hotels in Australia (including 6 owned or leased) plus 13 hotels in New Zealand, 8 in the Southern Pacific Islands and 14 in the rest of Asia. SPHC owns, leases, manages or franchises under the Parkroyal and Centra brands with 5 hotels currently unbranded. The consideration, which is to be settled in cash, is $A 313.1 million (£128 million at Friday, 14 January 2000 exchange rate) and excludes the Travelodge business which will continue to be operated by business interests of the Pritzker family. The acquisition will be earnings enhancing pre-goodwill amortisation from the outset and will cover Bass' WACC from the second year.

Bass Hotels & Resorts (BHR) operates a 102-strong hotel portfolio in the region under the Inter-Continental, Crowne Plaza and Holiday Inn brands and this purchase confirms Bass Hotels & Resorts as the largest hotel company in the growing Asia Pacific market with 161 hotels and over 40,000 rooms.

Commenting on the deal, Tom Oliver, Chairman and CEO of Bass Hotels & Resorts said, "This is an excellent opportunity for Bass to strengthen our number one position in the Asia Pacific market. We are looking forward to working with the owners of the hotels to build the returns as the properties are incorporated into Bass' global reservations system. Our customers will experience improved benefits through the linking of BHR's customer frequency programme, 'Priority Club' with SPHC's 'Pacific Privilege'."

"This agreement will afford Bass Hotels & Resorts unprecedented growth in its hotels distribution in the Asia Pacific region," Tom Oliver continued. "SPHC is the second largest hotel operator in Australia and 10th largest across the Asia Pacific region. The hotels are well managed and the current branding has established a good reputation in the regional markets. There is clear opportunity to build upon this strength by expanding the Bass Hotels & Resorts world-class global brands in the Asia Pacific region through this transaction."

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For further information, please contact:

Pugh Phillips, Director of Group Communication   0171 409 1919
Mark Rigby, Media Relations 0171 409 8571
Jonathan Atack, Investor Relations 0171 409 8153

Notes to editors:

Bass is an international leisure hospitality group operating in hotels, leisure retail and branded drinks.

  • Bass Hotels & Resorts is the world's most global hotel company whose brands include Inter-Continental Hotels and Resorts, Crowne Plaza Hotels and Resorts, Holiday Inn, Express by Holiday Inn and Staybridge Suites. It owns, operates or franchises more than 2,900 hotels and over 480,000 guest rooms in more than 95 countries and territories around the world.
  • Bass Leisure Retail operates about 3,000 managed pubs, restaurants and leisure venues including brands such as Vintage Inns, Harvester, Toby, Browns, All Bar One, It's A Scream, O'Neill's and Hollywood Bowl.
  • Bass Brewers is one of the major UK brewers of branded drinks including Carling, the UK's No 1 consumer brand, Tennent's, Worthington, Caffrey's, Bass Ale and Hooper's Hooch. Britvic Soft Drinks is one of the leading UK producers of branded soft drinks with brands such as Tango, Robinsons and Pepsi.

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