Summary of Proposed Investment
Project Number
9419
Company Name
A.S. Schlossle Hotel Group
Date SPI Disclosed
Apr 13, 1999
Country
Estonia
Industry
Tourism, Retail and Property
Status
Completed
Sector
City and Business Hotel
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jun 28, 1999
Signed : Oct 15, 1999
Invested : Feb 17, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name: | Estonia: Baltic Hotels |
| Region: | Central and Southern Europe |
Sector:
Project No:009419
Projected Board Date:May 20, 1999
Company Name:AS Schlössle Hotel Group
Technical Partner and/or Major Shareholders
Ober-Haus Real Estate Ltd.(60%), Industrifinans Eiendom Baltikum ASA (40%)
Project Cost Including proposed IFC investment
Total project cost is estimated at US$15.5 million with IFC investment of up to US$5.5 million, including senior loan and quasi-equity.
Location of project and Description of site
Hotels will be located in historic buildings in the prime Old Town locations of Tallinn, Estonia and Riga, Latvia. The first hotel in Tallinn, The Park Consul Schlossle Hotel, is located in the 15th century merchant''s house which has been restored to its former elegance. After implementing the proposed project, the Company will consist of 3 hotels: two in Tallinn, Estonia, and one in Riga, Latvia, with a total of 106 rooms.
Description of Company and Purpose of Project
The project will support development of a regional hotel group which will own and operate small 4-5 star "town-house" hotels in old properties restored with an emphasis on cultural heritage and historic preservation. Hotels will be managed by Consul Hotels International Ltd., an experienced hotel management company.
IFC will play a key role in this project by providing a long term loan and quasi-equity financing, which are currently unavailable in markets such as Latvia and Estonia. The project will contribute to preservation of the Old Towns of Tallinn and Riga. This investment will support IFC''s tourism strategy by helping to create infrastructure for business development and private investment in the Baltic region and will spread benefits of economic development throughout the area.
Environmental Category and Issues
This is a category B project according to IFC''s environmental and social review procedure. Environmental and social issues associated with this project include: implementation of an environmental management program, project design and historical preservation, liquid effluent disposal, waste disposal, use of CFC''s in air conditioning and refrigeration equipment, fire protection and life safety, and employee training, health and safety programs. The Company has presented plans to address these issues and demonstrated that the proposed project will comply with applicable World Bank requirements. The Company has commissioned an audit independent fire protection consultants to ensure the compliance of hotel properties with the World Bank fire protection and safety standards.
The is from the InfoShop.
| Host country location of environmental documents | Tallinn, Estonia: World Bank Office and AS Schlossle Hotel Group corporate office Riga, Latvia: World Bank Office |
Date SPI sent to InfoShop: April 13, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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