London, Hospitality Europe B.V. today announced plans to sell two hotels in Amsterdam - the five star Hotel Pulitzer, located in the centre of one of Europe's strongest performing hotel markets and the five star Sheraton Amsterdam Airport Hotel and Conference Center which is a terminal-linked hotel directly connected to Schiphol Airport.

Hospitality Europe's CEO, Charles McGregor, commented: "Our company's business model is to develop or acquire and then redevelop top quality hotels. In the case of these two hotels, the management team has successfully completed its work on the properties, with the Sheraton at Schiphol now stabilised and leading its market and the Pulitzer returned to the status of a truly luxurious hotel after a complete makeover. We are therefore executing the Company's original business model, and returning cash to shareholders. Both hotels have performed well for the company, and have considerable future promise, but their developmental stages are complete and it is time to move them on now that the physical work on them is done."

The Sheraton Amsterdam Airport Hotel was developed by Hospitality Europe and opened in 1997. The Pulitzer was acquired from Ciga in 1997 and renovated from top to bottom at a cost of close to €30 million.

Hospitality Europe has hired Jones Lang LaSalle Hotels to market the properties.

"We have undertaken a detailed review of the hotels within the Hospitality Europe portfolio", said Mark Wynne-Smith of Jones Lang LaSalle Hotels, "and whilst both hotels have achieved excellent returns for investors in the recent past, they have achieved the Company's ownership goals and it is now time for them to be sold to longer term owners". He continued: "There are high barriers to entry both at Schiphol Airport itself and in the city core, particularly for such top quality assets. The sale of these two assets will be the first major open-market hotel sales in Amsterdam for some 10 years. The city looks set to remain strong into the future with few new openings and robust demand."

Mark Wynne-Smith added: "The hotels are run under a complexing agreement and it makes sense that they are offered to the market together. However vacant possession could be secured at the Pulitzer if a purchaser requires."

The Pulitzer is a landmark property of great architectural importance, comprising 24, 17th and 18th century canal-side houses which were converted to a deluxe hotel providing 230 bedrooms and extensive food and beverage and conference facilities. The hotel's recent comprehensive refurbishment programme included upgrading and modernising all guestrooms and conference facilities in addition to renovating and re-constructing public areas. It was only recently admitted to the Starwood "Luxury Collection" and is still in the process of being repositioned into a higher level marketplace.

The Sheraton Amsterdam Airport Hotel and Conference Center is a 408 bedroom, newbuild property. It was opened in October 1997. Guests can walk directly into one of Europe's fastest growing airports from the property. The hotel has two restaurants, two bars and has 24 meeting rooms which can accommodate up to 1,350 in meeting space of 1,400m2. In addition, it has a health club with heated indoor swimming pool and its own private parking.

Enquiries in connection with the sale of the two hotels should be directed to:

Jones Lang LaSalle Hotels,
22 Hanover Square,
London W1A 2BN
Tel: +44 (0)20 7493 6040
Fax: +44 (0)20 7399 5694
Contacts:

Tom Oakden - [email protected] Telephone No. +44 (0)20 7399 5787
Nick Marsh - [email protected] Telephone No. +44 (0) 20 7399 5984

Karen Astbury
+44 (0) 20 7399 5675
JLL