Kempinski to build 150-room hotel in Vienna

A consortium of Porr Solutions, Warimpex, Vienna Insurance Group and Wien Holding has signed a letter of intent with the German luxury hotel operator Kempinski for the operation of the Palais Hansen building in the heart of Vienna. The property, which is being redeveloped and transformed into a new 150-room luxury hotel, will be Kempinski's first hotel in Austria.

'As Europe's oldest luxury hotel group with German roots, we feel a strong connection to Austria. For years now we have had a desire to operate an exceptional hotel with European flair in Vienna,' said Reto Wittwer, Kempinski CEO and President.

The hotel, scheduled for delivery in 2012, will offer around 150 rooms and suites, conference facilities, as well as a ballroom and spa area. Warimpex CEO Franz Jurkowitsch said: 'By choosing this operator we have acquired a partner who has already realised numerous successful projects, both in the top-end hotel industry and in dealing with luxury residences connected to the hotel.'

The consortium acquired Palais Hansen at the end of 2007 from Wien Holding for an undisclosed amount. Wien Holding retained a 20% stake in the 23,000 m² property, which dates back to 1873. The architectural team of Boris Podrecca and Dieter Hayde is designing the new hotel, which will be presented to the public in the first quarter of 2010, after receiving approval and planning permission from the authorities.

In a separate statement this week, Warimpex said it has increased its share capital by up to 10% through the issue of around 3.5 million shares at a price of EUR 2.25 per share. The proceeds will be used to finance the purchase of distressed assets and the optimisation of the current financing structure, the company added.