Global luxury brand Orient-Express Hotels has signed a binding agreement to purchase the Grand Hotel Timeo and the Villa Sant'Andrea Hotel in Taormina, Sicily, from Italy's Franza Group, the owner of the Framon hotel chain.
Global luxury brand Orient-Express Hotels has signed a binding agreement to purchase the Grand Hotel Timeo and the Villa Sant'Andrea Hotel in Taormina, Sicily, from Italy's Franza Group, the owner of the Framon hotel chain.
Under the agreement, scheduled for completion in late January, Orient-Express Hotels will acquire both properties for a total of EUR 81 mln. The deal includes the assumption of existing financing of EUR 44 mln, a new medium term bank loan of EUR 6 mln and vendor financing of EUR 5 mln.
Additionally, the company plans to invest EUR 11 mln in a major refurbishment programme, to take place over three consecutive winter closures. The hotels will reopen in time for the 2010 summer season.
'Having significantly strengthened our balance sheet in 2009 through the sale of non-core assets, we have identified this rare opportunity to acquire the internationally renowned Grand Hotel Timeo, with its sister hotel, Villa Sant'Andrea,' said Paul White, president and CEO of Orient-Express Hotels.
Built in 1873, the 83-room Grand Hotel Timeo is widely considered the most luxurious hotel in Taormina and the nearby 78-key Villa Sant'Andrea has a private beach on the Bay of Mazzaro and provides the opportunity to build an additional 12 rooms and a swimming pool. Law firm Gianni, Origoni, Grippo & Partners advised Framon Real Estate.
This transaction will bring the number of Orient-Express properties in Italy to eight, including the Hotel Cipriani and Palazzo Vendramin in Venice, Villa San Michele in Florence, Hotel Splendido and Splendido Mare in Portofino and Hotel Caruso in Ravello.