Israeli group Elbit Imaging has signed a letter of intent to sell its majority stake in the company that owns the Radisson hotel complex in Bucharest. According to this letter of intent, which is non-binding, the property is valued at some EUR 177.5 million, Elbit Imaging announced on NASDAQ. The potential buyer is an international investment fund, according to the announcement.
The transaction is expected to be closed within three or four months and is subject to the fulfillment of several conditions. The two parties must get the approval of the Romanian Competition Council and the buyer must secure external financing for this deal.
The Radisson complex is located in central Bucharest, on Calea Victoriei. The property includes the five-star Radisson Blu hotel, with a capacity of 487 rooms, the newly renovated four-star Park Inn Hotel, with a capacity of 276 rooms, and 7,200 sqm of commercial area that includes the biggest Casino in Bucharest, a fitness center and fashion shops.
The Radisson Blu hotel and the Park Inn hotel are managed by Rezidor, which is part of Carlson Rezidor Hotel Group.
Bucuresti Turism, the company that owns the two hotels, is one of the biggest hotel companies in Romania. It had a turnover of EUR 31.1 million and a net profit of EUR 2.57 million, in 2016, according to official data from the Finance Ministry.