Host Property's main tenants have applied for company reconstruction and the company is working on an amendment proposal regarding the terms of the company's listed bond loan

Due to the general challenging market situation, where the hotel market has been materially negatively impacted by the effects of the Corona virus for a number of months, Tribe Hotels have not paid the rent to Host Property for the second quarter of 2020. Tribe Hotels have also communicated to Host Property that they are not in a position to pay rent in accordance with the lease contract for the time being and going forward in the following months.

On June 24, 2020, company reconstruction has been initiated in Tribe Hotel Christian IV AB, Tribe Hotel Witt AB, Tribe Hotel Statt i Karlskrona AB, Tribe Hotel Statt i Örnsköldsvik, Tribe Hotel Stadt i Härnösand AB, Tribe Hotel Olofström AB, Tribe Grand Hotel Falun AB, Tribe Hotel Strand i Sundsvall AB and Tribe Hotel Billingehus AB. These are the hotel operating companies for the nine hotel properties in Host Property.

Host Property is working in close dialogue with its main tenant Tribe Hotels to facilitate possible activities and changes to the lease contracts to maneuver through this historic challenging time. It is in Host Property's interest to work closely with its main customer to consider possible changes if it is in the best interest of the long-term value for Host Property (and other stakeholders).

Host Property has over the last months worked on a number of initiatives to secure operations and long-term value. We see positive results of these initiatives but need some time to align and coordinate to a new normal and basis going forward. The company has confidence finding good long-term solutions Host Property and the bondholders. The bondholders and the equity owner (Flying Elephant) have a joint and common interest to find a good long-time solution.

Nordea Bank Abp is appointed as financial advisor. Nordea Bank Abp and the company is working together to bring forward a step plan for amendments in the Terms & Conditions for the SEK 500 million Host Property bond issue. Host Property will present the suggested amendments to the T&C in a bond holder meeting as soon as the amendment plan is ready.

Please see attached investor presentation for more information of COVID-19's effect on Host Property's business. Host Property will keep the investors updated on the bond amendment process and market development in general over the next weeks and months.

26.06.2020

Christian Fuhr, Host Property AB, mob: +47 98 22 85 16, email: [email protected]

This is information that Host Property AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.00 CEST on June 26, 2020.

The following documents can be retrieved from beQuoted
Host Property Pressrelease 2020-06-26 English.pdf
Host Property Market Update June 2020.pdf

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