Richoux Group reports plans to raise £1.1m as it reports cost headwinds: Richoux Group, the owner and operator of 18 restaurants under the Richoux, Villagio, Friendly Phil’s, Zintino and The Broadwick brands, has provided a trading update for the 26-week period ended 1 July 2018, and announces that the group intends to publish its interim results on 28 September 2018. The company stated: “In line with the group’s guidance at the time of the final results in May 2018 and a number of other companies in the sector, the group has seen continued pressure on trading during the period, with further impact from temporary restaurant closures due to conversion or refurbishment. The group expects revenues for the period to be in line with the prior year, with a reduction in the level of losses. The cash balances as at period end were approximately £0.9 million. In view of these continued headwinds, the group has remained focused on cost reduction and, where necessary, refinement of both its brand and property portfolio. The group is currently in advanced negotiations regarding a potential lease sale for one of the group’s restaurant locations in Central London. While there can be no certainty at this stage that the sale will proceed, nor as to the final terms, it is expected that the sale would generate net proceeds of approximately £1.35 million. The group will update shareholders in due course, as appropriate. In view of the group’s current cash position, as highlighted earlier in the year, the group intends to raise approximately £1.1 million by way of a subscription at a price of 6 pence per ordinary share. A further announcement in respect of the Subscription is expected to be released later today.”

Dalata buys Aldgate hotel for £91m: Dalata Hotel Group has exchanged contracts to acquire the long leasehold interest of a hotel under development, located at Aldgate, London for a total consideration of £91 million. As part of the transaction, Dalata will acquire the entire issued share capital of Hintergard Limited from Aldgate Hotel Holdco LLC, an investment vehicle of an international private equity real estate investor. Hintergard Limited owns the 300 year leasehold interest of a hotel under development, located at Aldgate, London. The transaction is conditional on the completion of the hotel to an agreed specification. The construction of the hotel, which will be branded Clayton Hotel Aldgate London, is expected to be completed and operational towards the end of this year. The hotel will have 212 rooms, with a restaurant, bar and access to a fitness centre. It will be located adjacent to Aldgate East Underground Station and in close proximity to the new Liverpool Street and Whitechapel Crossrail stations, both of which are scheduled to open in December 2018. The Transaction will be funded by an additional debt facility which has been secured from the company’s existing banking partners. Dermot Crowley, deputy chief executive – business development and finance, said: “We are delighted to secure this new hotel in Aldgate, London. We already successfully operate two Clayton hotels in the Greater London area at Chiswick and Cricklewood. This new hotel gives us a presence in a key central location within the city and is ideally located for corporate customers who want to be close to the City of London and leisure guests visiting the many attractions that the city has to offer. Access to the Aldgate area will be further enhanced with the opening of two new Crossrail stations at Liverpool Street and Whitechapel in December 2018. Although RevPARs have fallen slightly in London over the last 12 months, London remains a key gateway city in Europe that will continue to benefit from the growth in international travel. Our gearing levels will increase in the short term as a result of this transaction but will still remain below our guided upper level of 3.5 times Net Debt to Ebitda. The hotel is projected to be earnings per share enhancing from its first year of operation. The announcement today represents another very important milestone in the growth of Dalata in the UK. We now have a pipeline of almost 2,000 rooms across key UK cities such as London, Birmingham, Glasgow, Manchester and Bristol.”