Vega group buys Faleza hotel in Galati for EUR 2.6 million

Vega Company has bought the tourist complex Faleza near the Danube quay in Galati city for EUR 2.6 million, the Tourism Ministry has announced. Five bidders attended the bid for the 3,500 sqm hotel complex on the Galati Danube quay. The starting price was of EUR 1.1 million. The Galati city hall was also planning to take part in the bid, but according to the law city halls are not allowed to be involved in such bids. Faleaza Galati hotel has around 60 rooms. The buyer, Vega Company runs the three-star Vega hotel in Galati, with 69 rooms, located on the Danube quay. Vega Group was planning to invest around EUR 8 million in building a new hotel on the Danube quay in Galati. The group owns construction companies as well, among which Vega'93 and Viva Construct. Vega Group was set up by Romanian businessman Corneliu Istrate, who has been listed in the top of billionaires in Romania. The Istrate family ranks 50th in the Forbes top with an estimated wealth of EUR 55 million. Two other similar bids for tourist facilities will take place this month, when state-owned Mamaia SA and Litoral SA will sell some of their assets. The deadline for submitting offers for the two compounds is November 16. Mamaia SA will sell Vila Turistica Mamaia, on some 2,145 sqm and Complex Hotelier Mamaia, on 2,329 sqm. The bids are part of a privatization process the Tourism Ministry has started, targeting the tourism facilities across the country which are still state-owned and most of which require extensive renovation. editor@romania-insider.com