Elegant Hotels : Update on Hodges Bay Resort & Spa

9 July 2019

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Elegant Hotels Group plc

Update on Hodges Bay Resort & Spa in Antigua

The Board of Elegant Hotels Group plc ('Elegant Hotels', the 'Company' or the 'Group'), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today announces an update in relation to Hodges Bay Resort & Spa in Antigua ('Hodges Bay').

Hodges Bay, which was originally due to open in July 2017, remains incomplete due to ongoing issues with the construction of the property, which are outside of Elegant Hotels' control. However, Hodges Bay was being operated by Elegant Hotels on a partially open basis.

The Company confirms that, although the operating term of the management contract has not commenced, it has now received a termination notice in relation to the management contract. The Company disputes the validity of this termination notice and intends to take all action necessary to preserve shareholder value.

The Company can confirm that it has approximately $1.7m of balances outstanding in relation to Hodges Bay; being $1.5m in the form of a loan to the Hodges Bay management company, and $0.2m of unpaid technical service fees. Under the terms of the management contract, the loan is now immediately repayable to the Company following receipt of the termination notice.

The Group's outlook for FY2019 and FY2020 remains unchanged.

For further information:

Elegant Hotels Group plc

Sunil Chatrani, Chief Executive Officer [phone]

Jeff Singleton, Chief Financial Officer

Liberum Capital Limited (NOMAD and Broker)

Clayton Bush / Chris Clarke / William Hall [phone]

Powerscourt

Rob Greening / Lisa Kavanagh / Jana Tsiligiannis [phone]

Email:[e-mail]

Notes to Editors:

Elegant Hotels owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne's, on the island of Barbados. The Group's portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the 'Platinum Coast'. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2018, the Group reported revenue of $62.9 million and EBITDA before non-recurring items of $19.7 million.

Together, the Group's seven existing hotels - Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach - offer styles encompassing classic and contemporary, family-friendly and adults-only.

The Group's strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

Investor website:http://www.eleganthotelsgroup.com/

Commercial website: http://www.eleganthotels.com/