Eli Papouchado to float hotel co Park Plaza in London

Eli Papouchado, one of Israel's leading real estate developers, is set to float his hotel business on London’s Alternative Investment Market (AIM). The "Financial Times" reported yesterday that his company, Park Plaza Hotels & Resorts, will raise €150 million ($195 million) at a value of €400 million ($520 million).

Park Plaza runs 24 hotels across Europe and the Middle East, some of which are franchised by US hotel group Carson. The floated company will include Papouchado's share in the hotel business he jointly owns with Mordechai (Motti) Zisser, and the hotel chain's management company. Zisser apparently opted not to float his share since he felt that he could have obtained a higher value on it than that at which the company is making the flotation.

According to the "Financial Times," the flotation is due to get under way towards the end of next month. Morgan Stanley is the underwriter and nominated adviser for the float. Plaza Park will use the capital to repay debts and raise brand awareness.

The hotels operating under the Plaza Park brand have up to 500 rooms each, and the company intends to build four more by the end of 2010. Should this program be completed, the total number of rooms in the hotel chain will rise to 6,000.

Published by Globes [online], Israel business news - www.globes.co.il - on June 20, 2007

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