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Eastern European Markets
NEWS RELEASE
March,15. 2006

Holiday Club to open the first spa hotel in St. Petersburg

Holiday Club Finland, the leading provider of leisure travel services in Finland, will open a the first full service Spa Hotel in St. Petersburg, Russia. Holiday Club’s new spa hotel will be completed and opened during 2007. The project is implemented in co-operation with the Finnish real estate company Dividum, owned by London & Regional Properties. Dividum will own the hotel property, which will be constructed by LenSpecSMU, a construction company based in St. Petersburg.

The floor area of the new Holiday Club City Spa will be more than 25,000 square metres, with approximately 285 hotel rooms for tourists. The St. Petersburg City Spa will be a full service spa hotel with a versatile treatment section, a unique sauna world and a stylish pool area as well as a wide range of services targeted to adults, both physical and mental fitness services. The spa complex will also include restaurants serving healthy gourmet food, a sports bar, conference facilities, and time share apartments in accordance with Holiday Club’s City Spa concept, which combines a versatile, high-quality spa hotel with comfortable time share apartments.

The St. Petersburg spa hotel is Holiday Club’s first spa project in Russia and continues the company’s expansion in the Nordic countries and the Baltic States. Holiday Club’s City Spa project in St. Petersburg supports the company’s strategy to become the leading provider of leisure travel services in the Nordic and Baltic areas.

”Holiday Club has set a goal of ¤200 million for its turnover in 2010. One of the cornerstones of growth is taking the successful City Spa concept, consisting of versatile and high-quality spa hotel and time share resorts, to new towns in the Baltic States, the Nordic countries and Northwestern Russia. The new spa hotel in St. Petersburg is an extension of the Tallinn spa project published last summer and the spa hotel that was opened in Åre last year. We are still surveying the expansion of the spa concept to other major cities in the Baltic and Nordic countries”, says Vesa Tengman, President and CEO of Holiday Club.

The new City Spa will be located at the historical city-centre of St. Petersburg on Vasili Island, near the Hermitage and other important sights. The spa hotel will be built in a historical building that has previously served, among other things, as a wine warehouse. Because of its excellent location and range of versatile services the spa will more than meet the needs of leisure travelers and demanding conference customers.

A new market for time-share

Holiday Club St Petersburg is the first time-share resort in Russia and the first resort of Holiday Club in the area. Its unique place in the centre of the city and the very high quality standards make it a good pilot for this huge market. ”When the product and services are at the level of Holiday Club, the time-share sales potential is excellent”, says Vesa Tengman. "We are looking forward to a major level of increase in the sales of time-share apartments in Russia and Baltic states as well as in Finland and in Sweden", he continues.

“For Dividum this is a very important investment and part of our expansion strategy outside Finland, which was initiated last year. In July 2005 we acquired our first resort in the Baltic States, Scandic Hotel Neringa Vilnius in Lithuania, in September Holiday Club Åre in Sweden, and now we are for the first time expanding into Russia. The hotel has an excellent location in the heart of St. Petersburg. The fact that Holiday Club is a renown and reliable operator for the hotel also had a crucial impact on our involvement in the project”, says Tomi Bergman, Managing Director of Dividum. At the moment Holiday Club operates in hotel properties owned by Dividum in Oulu, Saariselkä, Kuusamo, Vuokatti and in Åre.

“The new Holiday Club spa hotel in St. Petersburg is our first investment in Russia. It supports our strategy to enter the booming Russian real estate market, not only as the owner of hotel properties but also of office properties, commercial and shopping centres etc.,” states Thomas Lindeborg, Managing Director of LR Nordic Properties.

The second largest city in Russia, St. Petersburg is a real treasure for art and culture travelers, and an increasingly popular tourist attraction in Europe. The number of Finnish tourists visiting St. Petersburg has been steadily growing in recent years.

About...

Holiday Club Finland Oy is the leading Finnish supplier of leisure travel services. The Holiday Club Finland chain includes six spa hotels in Finland and nine other holiday resorts. The company’s first spa hotel outside Finland, the Holiday Club Åre, was opened in November 2004 at Åre in Sweden. Holiday Club will open a new spa hotel and holiday centre in Tallinn in 2008. Holiday club will also open a spa hotel in Himos Leisure Centre in Finland in 2008. Founded in 1986, Holiday Club is one of the biggest time share companies in Europe. Initially its operations focused entirely on the time share business. Group sales for 2005 totaled ¤ 96 million, of which spa hotel, restaurant, leisure services and treatment services generated two thirds, and time share operations the rest. The Holiday Club chain employs approximately 500 people. The goal of Holiday Club Finland Oy is to become the leading supplier of leisure travel services in the Nordic and Baltic countries. www.holidayclub.fi

Dividum Oy is a real estate investment company specialising in hotel buildings. The company develops business and hotel properties using its special expertise, in close collaboration with hotel operators. Dividum has successful partners and 31 hotels in towns and growth centres throughout Finland. Dividum is owned by the British company London & Regional Properties through its Swedish subsidiary LR Swedish Properties AB. www.dividum.fi

London & Regional Properties has many years of experience in negotiating, concluding and managing substantial property projects both within the UK and Europe. With a portfolio in excess of £3.5billion, L&R is now one of the UK’s largest private property companies. London & Regional properties operate in four main areas: Long-term Property Investment, Outsourcing, Commercial Property Development, and Hotel investment and Development. In addition to property holdings, L&R is one of the biggest owners of hotel properties in Europe. It owns 61 hotels with a total of 9,417 rooms. www.lrp.co.uk and www.lrp.se

For further information:
Vesa Tengman, President and CEO, Holiday Club Finland
Tel. +358 (0)500 421 515. E-mail: vesa.tengman@holidayclub.fi
Mats Svensson, Managing Director, Holiday Club Sweden
Tel. +46 70 609 3352. E-mail: mats.svensson@holidayclub.se
Tomi Bergman, Managing Director, Dividum Oy
Tel. +358 (0) 40 5413 559. E-mail: tomi.bergman@dividum.fi
Thomas Lindeborg, Managing Director, L&R Nordic Properties AB
Tel. + 46 70 624 8503. E-mail: thomas.lindeborg@lrp.se

www.holidayclub.fi


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