PRAGUE, Czech Republic, July 15, 2005 (PRIMEZONE) -- Karrington Holdings Corp. (Pink Sheets:KGHC), announced today that its founder and CEO, R. Revell Murphy, has successfully completed negotiations in Prague with the signing of a Letter of Intent to purchase a fully operational hotel in Prague.
The hotel in question is presently valued at EUR 12 million. Part of the potential acquisition will be an ongoing agreement with the Key Hotel Group to continue managing the hotel's daily operation. The Letter of Intent will allow for final steps to be concluded for the acquisition, which is subject to evaluation and approval by the Board of Directors.
Prague represents one of the most exciting emerging markets in the European Union (EU), and provides stability and security as a member of NATO and as a member of the EU since April 2004. Prague is being evaluated at this time to join the euro currency in 2010. At this time, Prague represents an opportunity for investor involvement into a safe and secure environment in the tourism and business sector relating to the hotel and hospitality aspects of European growth.
Karrington has become familiar with the availability for acquisition of a select group of fully operational hotels in this central European capital. These hotels represent an opportunity for Karrington to apply sound business structure and management to significantly enhance the utilization, occupancy, and net profitability for Karrington shareholders.
Forward-looking statements in this release are based on current expectations, which may differ materially from actual results. Forward-looking statements include, without limitation, those regarding management's plans, objectives and strategy for future operations, production plans and performance, management's assessment of market factors, and future financial performance and fall within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Among factors that could cause actual results to differ materially are changes in business conditions, changes in the Industry and the general economy, competition, changes in service offerings, risks associated with Karrington's history, entry into developing markets and new product lines, and managing rapid growth, and risks associated with international operations, dependence on effective information systems and the development of the Company's current and anticipated products.