Bettagrade Acquisition

RNS Number:0277W
Hurlingham PLC
19 December 2000


ACQUISITION OF FURTHER INTEREST IN BETTAGRADE LIMITED

Hurlingham plc ("the Company" or "Hurlingham") is pleased to
announce  that  it has today entered into an agreement  with
Aberdeen  Development  Capital  ("ADC")  to  purchase  ADC's
50,000  preferred ordinary shares and #350,000 12  per  cent
loan  stock  interest in Hurlingham's 45 per cent  associate
company Bettagrade Limited ("Bettagrade"). The consideration
for  the  purchase is 388,369 ordinary shares in  Hurlingham
and  #23,145 in cash.  Application will be made for the  new
ordinary  shares, which will rank pari passu in all respects
with  the Company's existing issued ordinary shares,  to  be
admitted to trading on AIM.

Immediately after the acquisition of the ADC shares and loan
stock,  the Company will own 162,500 shares representing  65
per  cent  of Bettagrade's issued share capital.   The  only
other  remaining  interest  in Bettagrade  is  that  of  the
Directors  of  Hurlingham.  The Company expects  shortly  to
enter into a conditional agreement to purchase the Directors
interests  for a consideration comprising of not  more  than
74,619  new  ordinary shares in Hurlingham together  with  a
cash element not exceeding #12,000.  This agreement will  be
subject to shareholder approval and a circular convening the
necessary extraordinary meeting will be sent to shareholders
shortly after contracts have been exchanged.

Bettagrade  was  formed  in  September  1997  in  order   to
construct  and  operate  a Holiday Inn  Express  in  Central
Scotland,  financed by Clydesdale Bank Equity  Limited  (now
ADC),  the Company and the Directors.  A 1.42-acre  site  in
Perth,  Scotland  was  acquired  in  October  1998  and  was
official opened on 9 September 1999.

In  the year ended 28 May 2000 Bettagrade incurred a trading
loss  of  #122,000 on turnover of #477,000.   At  that  date
Bettagrade  had  net  assets of #128,000 including  tangible
assets  of  #3,148,000.  The hotel  has  been  independently
valued,   based  on  its  current  use,  at  #3.5   million.
Bettagrade  is  expected to contribute to  Hurlingham  group
profits in the current year.

Bettagrade  initially  suffered from  poor  winter  trading,
exacerbated   by   the   'millennium  effect',   which   was
experienced  by  the  hospitality  industry  nationwide  and
resulted in poor occupancy levels over Christmas and the New
Year   period.    In  light  of  these  results   Bettagrade
strengthened  its  marketing effort  with  the  result  that
business   has  improved  significantly  through  the   last
calendar  year,  with  occupation rates  peaking  in  August
at 85%.

The  transaction  will  enable the  Company  to  expand  its
Bettagrade  operations  utilising  a  strengthened   balance
sheet.  As part of the restructuring exercise agreement  has
been  reached  with  Company's  bankers  to  reschedule  the
principal  debt associated with the hotel on more  favourable
terms, including a repayment holiday until March 2003.

Hurlingham (LSE:HRL)
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