New owners of Benjamins House will transform it into a hotel
A hotel will be established in Riga^apostrofs;s historic Benjamins House, Martines Kaciulis, director of the house^apostrofs;s new owner, the Lithuanian hotel company "Europa Group", told reporters yesterday. USD 7 million are to be invested into reconstruction of the ornate building.
A hotel will be established in Riga's historic Benjamins House, Martines Kaciulis, director of the house's new owner, the Lithuanian hotel company "Europa Group", told reporters yesterday. USD 7 million are to be invested into reconstruction of the ornate building.
The hotel is to have 50 rooms, four conference halls, a restaurant, bar, casino, cafe, business center, and a parking lot.
The new hotel will be called "Europa Royal Riga", it will be a four-star hotel according to Lithuanian standards, and a three-to-four star hotel according to European standards, Kaciulis said.
Reconstruction of Benjamins House will begin next spring and it could conclude next October.
It is expected the hotel will provide 50-70 people with jobs.
All historical items in the house will be restored and preserved, Kaciulis stressed.
The Lithuanian Embassy in Riga has said that private initiative can be more successful in preserving historical values than public institutions, drawing the example of buildings in downtown Vilnius renovated by "Europa Group", that now house hotels.
As for speculation that the Benjamins House could be redeemed by the Riga City Council, Kaciulis said that if the city council "plans to nationalize the building to launch a museum there, we will have to comply." He hopes this will not happen.
Kaciulis also denied press reports that the main owners of the Benjamins House were offshore companies. "Europa Group" was founded in 2000, all its owners are Lithuanian citizens, he said.
"Europa Group" owns three hotels in Lithuania - two in Vilnius and one in Klaipeda, all are located in the historic centers of the cities. The total value of the company's estates is USD 22 million. In the future, the company plans on opening new hotels in Warsaw, Moscow, St. Petersburg, Tallinn, Kiev, and one more in Riga.
About 60 buildings in Riga were inspected before the decision was adopted to buy the Benjamins House, Kaciulis said.
Kaciulis did not disclose the sum paid for Benjamins House, because the other contracting side did not want the information be made public.
"Europa Group" believes the money invested in Benjamins House will pay in 10 years.
Benjamins House was sold on September 23, which prompted intense speculation about the building's future. Currently, one floor in the four-story building is occupied. The building's premises are mostly used for various presentation events - companies' anniversaries, seminars, conferences.
Experts have said the building is worth over USD 3 million. The auction's starting price for the building and the land plot was set at USD 2.85 million.
Kaspars Martinsons LETA
Copyright © LETA
The hotel is to have 50 rooms, four conference halls, a restaurant, bar, casino, cafe, business center, and a parking lot.
The new hotel will be called "Europa Royal Riga", it will be a four-star hotel according to Lithuanian standards, and a three-to-four star hotel according to European standards, Kaciulis said.
Reconstruction of Benjamins House will begin next spring and it could conclude next October.
It is expected the hotel will provide 50-70 people with jobs.
All historical items in the house will be restored and preserved, Kaciulis stressed.
The Lithuanian Embassy in Riga has said that private initiative can be more successful in preserving historical values than public institutions, drawing the example of buildings in downtown Vilnius renovated by "Europa Group", that now house hotels.
As for speculation that the Benjamins House could be redeemed by the Riga City Council, Kaciulis said that if the city council "plans to nationalize the building to launch a museum there, we will have to comply." He hopes this will not happen.
Kaciulis also denied press reports that the main owners of the Benjamins House were offshore companies. "Europa Group" was founded in 2000, all its owners are Lithuanian citizens, he said.
"Europa Group" owns three hotels in Lithuania - two in Vilnius and one in Klaipeda, all are located in the historic centers of the cities. The total value of the company's estates is USD 22 million. In the future, the company plans on opening new hotels in Warsaw, Moscow, St. Petersburg, Tallinn, Kiev, and one more in Riga.
About 60 buildings in Riga were inspected before the decision was adopted to buy the Benjamins House, Kaciulis said.
Kaciulis did not disclose the sum paid for Benjamins House, because the other contracting side did not want the information be made public.
"Europa Group" believes the money invested in Benjamins House will pay in 10 years.
Benjamins House was sold on September 23, which prompted intense speculation about the building's future. Currently, one floor in the four-story building is occupied. The building's premises are mostly used for various presentation events - companies' anniversaries, seminars, conferences.
Experts have said the building is worth over USD 3 million. The auction's starting price for the building and the land plot was set at USD 2.85 million.
Kaspars Martinsons LETA
Copyright © LETA
