Hotel owner and operator Park Plaza has acquired a 20% stake in hospitality firm WM/DMREF Bora B.V. (Bora) from a group of real estate investment funds managed by Goldman Sachs. The takeover sum comes to EUR 22mln. As part of the transaction, Park Plaza is also acquiring 20% of the debt provided to Bora by its shareholders. The acquisition is being made through Park Plaza's wholly-owned subsidiary, Euro Sea Hotels, and will be funded from Park Plaza's existing cash resources, the company said.
Hotel owner and operator Park Plaza has acquired a 20% stake in hospitality firm WM/DMREF Bora B.V. (Bora) from a group of real estate investment funds managed by Goldman Sachs. The takeover sum comes to EUR 22mln. As part of the transaction, Park Plaza is also acquiring 20% of the debt provided to Bora by its shareholders. The acquisition is being made through Park Plaza's wholly-owned subsidiary, Euro Sea Hotels, and will be funded from Park Plaza's existing cash resources, the company said.
Bora was formed in July 2007 for the purpose of acquiring a controlling interest in Zagreb-listed Arenaturist and three related private companies. Bora currently holds approximately 74% of Arenaturist and 100% of the three private companies. These companies together own eight hotels and five apartment complexes in and around Pula on the Istrian coast of Croatia. They also operate five island and coastal properties, which are currently used as campsites, and a number of other properties also near Pula.
Bora intends to refurbish the hotels and apartment resorts through 'significant' investment. A number of the hotels will be branded Park Plaza Hotels & Resorts. There are also plans to upgrade the portfolio's conference and recreation facilities in order to broaden the revenue and target customer base of the properties.
In addition to its investment in Bora, Park Plaza and Arenaturist will enter into an agreement under which the Park Plaza group will manage and operate the portfolio of properties for an initial term of 20 years.
Park Plaza's management believes that Bora's portfolio is set to benefit from Croatia's growing status as a popular destination for international travellers. According to the Croatian ministry of tourism, the number of international visitors to Croatia almost doubled between 2000 and 2006, with Istria, in which Pula is located, being the most visited area of the country. Upscale segment hotels in the country are currently achieving average room rates at European levels.
