PPHE Hotel Group, announces that the Group, via its subsidiary, Arena Hospitality Group d.d., has entered into a purchase agreement pursuant to which the Group will acquire the FRANZ Ferdinand Mountain Resort Nassfeld, a 4-star hotel in Nassfeld, Austria and related businesses for an aggregate purchase price of 112 million Croatian Kuna (approximately £12.7 million). This modern mountain resort is superbly located next to the valley station of the Nassfeld Ski Resort in Carinthia, providing instant access to the area's 110km of slopes. The hotel offers 144 family rooms, a restaurant, bar, conference rooms, private car park, wellness and sauna and children facilities.

In addition, the agreement includes the acquisition of a detached property consisting of 21 rooms currently used as employee accommodation, and a site adjacent to the hotel, currently in use as a terrace, which is earmarked for future development of a swimming pool. This latest acquisition is a strategic fit that complements the Group's summer leisure business and builds on the seasonal synergies which can be achieved due to the hotel's close proximity to the Group's Croatian operations. In addition, Austria is one of the Group's customer markets for its Croatian operations and this hotel will help further raise the Group's profile in this important market.

The completion of the transaction is subject to certain steps and conditions to be fulfilled. The Group expects the conditions in relation to the completion of the transaction to be fulfilled latest by end of quarter one 2022. The Group will endeavour to complete the transactions prior to the start of winter season 2021/2022.