The Rezidor Hotel Group today announced the conversion of two lease agreements, the Park Inn by Radisson Malmö and the Park Inn by Radisson Hammarby Sjöstad, in Sweden to franchise agreements.
Combined, the two hotels comprise more than 400 rooms and will remain under the Park Inn by Radisson brand. Ligula Hospitality Group AB will purchase the shares of the company which holds the lease agreements, Rezidor Hotel AB which will operate the hotels under franchise agreements beginning in Q1-2013. The shares will be purchased for a symbolic 1 EUR, while the net assets of the company are 0.9 MEUR. The 2012 forecasted EBITDA losses for the hotels are a combined MEUR 0.8.
Ligula Hospitality Group has over 375 employees and MEUR 45 in annual revenue. The group holds several local brands and among them is ProfilHotels with 10 hotels in Sweden and Denmark.
“Converting these hotels from leases to franchise agreements is in line with our asset-light strategy and our increasing focus on fee-based business”, says Wolfgang M. Neumann, President & CEO at Rezidor. “In addition, we are delighted to partner with ProfilHotels, which is a highly successful and experienced operator and capable of managing these hotels at the highest level”.
The information here is that which Rezidor Hotel Group AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.