"Radisson SAS Daugava Hotel's" key owner wants to buy out Riga City Council's stake in the hotel
The U.S. company "PBR Hotel Ltd.", the key owner of the "Radisson SAS Daugava Hotel", wishes to buy out shares held by the Riga City Council, the newspaper "Dienas Bizness" reports today.
The U.S. company "PBR Hotel Ltd.", the key owner of the "Radisson SAS Daugava Hotel", wishes to buy out shares held by the Riga City Council, the newspaper "Dienas Bizness" reports today.
Both Aija Rimicane, the head of the Riga City Council's Property Expropriation Administration, and Janis Lancers, chairman of the board at the "Polarbek Daugava" company that owns the hotel, director at the construction company "PBLC" and representative of "PBR Hotel" in Latvia, confirmed the above information to the newspaper.
"PBR Hotel" holds 55 percent interest in "Polarbek Daugava", the Riga City Council - 45 percent. The hotel's building belongs to "PBR Hotel Ltd.", the land plot under the hotel - to the Riga City Council. "PBR Hotel" has been notified about required documents for launching privatization of the hotel and the procedure for privatization, however, the privatization procedures have not been launched as yet, Rimicane told the newspaper. After the city council receives the required documents, it will decide on launching the procedures.
Negotiations on privatization of the hotel began about one year ago, Lancers told "Dienas Bizness". The required documents have been prepared, and the U.S. company could become the sole owner of the hotel in about six months.
"If property belongs to two owners, it can be said that it has no master at all, because it is hard to decide who will invest in the maintenance and improvement of the hotel," Lancers said, explaining the wish to privatize the hotel, adding that its business line would not change after privatization.
Abdellatif Billou, finance controller at the hotel management company "Radisson SAS Hotels & Resorts", told the newspaper that he could not comment on the owners' intentions, he had not received any information about a possible privatization of the hotel as yet. However, "Radisson SAS Hotels & Resorts" has signed a long-term contract with the owners of the hotel, which means that the management company's operations cannot be influenced by privatization, he said.
Rimicane did not mention to "Dienas Bizness" the hotel's purchasing price, because the value of the Riga City Council's investments need to be appraised first. Lancers also emphasized this was a confidential information. This past March, Raimonds Krumins, the head of the city council's Finance Department, told "Dienas Bizness" that the city council's stake could be sold for LVL 2-5 million.
Leaders of the Riga City Council and financiers believe that hotel maintenance is not a municipal business.
The hotel's representatives earlier told LETA that the sale of the hotel's shares would not affect the service it offers. The hotel will also have no problems in attracting clients.
LETA LETA
Copyright © LETA
Both Aija Rimicane, the head of the Riga City Council's Property Expropriation Administration, and Janis Lancers, chairman of the board at the "Polarbek Daugava" company that owns the hotel, director at the construction company "PBLC" and representative of "PBR Hotel" in Latvia, confirmed the above information to the newspaper.
"PBR Hotel" holds 55 percent interest in "Polarbek Daugava", the Riga City Council - 45 percent. The hotel's building belongs to "PBR Hotel Ltd.", the land plot under the hotel - to the Riga City Council. "PBR Hotel" has been notified about required documents for launching privatization of the hotel and the procedure for privatization, however, the privatization procedures have not been launched as yet, Rimicane told the newspaper. After the city council receives the required documents, it will decide on launching the procedures.
Negotiations on privatization of the hotel began about one year ago, Lancers told "Dienas Bizness". The required documents have been prepared, and the U.S. company could become the sole owner of the hotel in about six months.
"If property belongs to two owners, it can be said that it has no master at all, because it is hard to decide who will invest in the maintenance and improvement of the hotel," Lancers said, explaining the wish to privatize the hotel, adding that its business line would not change after privatization.
Abdellatif Billou, finance controller at the hotel management company "Radisson SAS Hotels & Resorts", told the newspaper that he could not comment on the owners' intentions, he had not received any information about a possible privatization of the hotel as yet. However, "Radisson SAS Hotels & Resorts" has signed a long-term contract with the owners of the hotel, which means that the management company's operations cannot be influenced by privatization, he said.
Rimicane did not mention to "Dienas Bizness" the hotel's purchasing price, because the value of the Riga City Council's investments need to be appraised first. Lancers also emphasized this was a confidential information. This past March, Raimonds Krumins, the head of the city council's Finance Department, told "Dienas Bizness" that the city council's stake could be sold for LVL 2-5 million.
Leaders of the Riga City Council and financiers believe that hotel maintenance is not a municipal business.
The hotel's representatives earlier told LETA that the sale of the hotel's shares would not affect the service it offers. The hotel will also have no problems in attracting clients.
LETA LETA
Copyright © LETA
