TVC HOLDINGS LED CONSORTIUM ACQUIRES QUALITY / COMFORT INN HOTEL CHAIN

TVC HOLDINGS LED CONSORTIUM ACQUIRES QUALITY / COMFORT INN HOTEL CHAIN REPRESENTING €46.5 MILLION INVESTMENT

TVC Holdings plc, a leading publicly quoted investment holding company, today (Tuesday, 7th August 2007) announced that it has led a consortium of investors, including Pat McCann and Davy Private Clients, to acquire the operating businesses of 11 Comfort Inn and Quality Hotels in Ireland, which employ 500 people, for €41.5 million from Kasterlee Limited, trading as Choice Hotels Ireland.  The deal represents a total investment of €46.5 million, including €3 million of development capital.  This is TVC Holdings’ first investment following its successful €50 million placing and listing on the AIM market of the London Stock Exchange and the IEX market of the Irish Stock Exchange in July 2007.

The acquisition of the business will be funded with a combination of equity from TVC Holdings, Pat McCann and Davy Private Clients; and debt from Ulster Bank (and is subject to certain conditions).  TVC Holdings has invested €10 million of equity giving it a 29% shareholding.   A new company will be set up to operate the business and Pat McCann will be the full time Chief Executive.   Pat has operated in the hotel sector for almost 40 years and most recently was Chief Executive of Ireland’s largest and most successful hotel operator, Jurys Doyle Hotel Group plc, from 2000 to 2006.  An experienced management team will join Pat, both from the existing Choice Hotels Ireland business and external new appointments.  The transaction was led by TVC Holdings’ executives, Rory Quirke and Gavin Bourke, both of whom have joined the Board of the new company.  David Goddard, Director of Davy, has also joined the Board.  Of the 11 leased/managed hotel properties acquired, which combined have in excess of 1,400 rooms, seven are branded ‘Quality Hotel’ and four are branded ‘Comfort Inn’.  The majority of the properties have been recently developed and are located in prime urban areas.  Both the Quality Hotel and Comfort Inn brands are focused on the corporate and leisure markets, with a greater emphasis on the corporate market in the properties located in urban centres.  All of the Quality Hotels offer leisure and meeting room facilities.  The Comfort Inn at Portlaoise also offers leisure and meeting room facilities, while the remaining three Comfort Inns, which are all under 14 months old, specialise in top level three star accommodation.    

Speaking today on the acquisition of the hotel chain, Shane Reihill, Executive Chairman and Founder of TVC Holdings, said: “We are delighted to announce this investment so soon after our successful flotation. It clearly demonstrates TVC Holdings’ ability to identify and execute large deals in different market sectors. We believe this investment gives us a significant opportunity, working with Pat and his team, to considerably strengthen and develop this hotel business in both Ireland and the UK, and deliver value to our shareholders”.

Pat McCann, Chief Executive of the new company, said: “I am delighted to have the opportunity to lead what is an excellent business with exciting growth potential.  I believe there is a significant opportunity to develop a substantial upper three star hotel business in Ireland and to extend this to the UK.  We intend to leverage relationships with development partners in the sector to commence the roll-out of our business in the UK within the next two years.  I am very encouraged by the support we have received from the investing and banking sectors in Ireland and I look forward to working with our new colleagues throughout the 11 hotels to develop a highly successful business”.

David Goddard, Director of Davy, said: "We are pleased to have been able to present this opportunity with TVC to our clients.  Pat McCann is one of the most respected and experienced hoteliers in these islands and we are excited by the growth prospects of the Quality / Comfort Inn hotel chain".