Park Plaza Hotels Ltd. (LSE:PPH), controlled by Eli Papouchado, is expanding from Europe to Thailand through a joint venture with Kitaria Holdings Ltd. to develop 40,000-square meter mixed-use complex at Pattaya, including a 100-room upscale hotel. The companies will own the venture in equal shares, but the owner of the site, Bali Hai Co. Ltd will receive 10% of the profits.
When the project is completed, Park Plaza and Kitaria will acquire 93.2% of Bali Hai from Elran (DD) Real Estate Ltd. (TASE:ELRE), controlled by Dori and Gadi Danker for $7 million, plus a $2.5 million loan. A Thai investor will own the rest of Bali Hai.
Earlier this month, Park Plaza bought a two-acre site in Park Royal in western London for £6 million on which it plans to build a hotel
Park Plaza's share price fell 8.7% in London on Friday to ₤2.21, giving a market cap of ₤93 million.
Financially troubled Elran Real Estate, a subsidiary of Elran Investments Ltd. (TASE: ELIN) reached a debt settlement with its bondholders in April, but still needs cash.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2011
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