Summary of Proposed Investment
Project Number
9444
Company Name
Reval Hotel Group JSC
Date SPI Disclosed
Apr 7, 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 14, 1999
Signed : Dec 20, 1999
Invested : Jan 31, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name: | ESTONIA: REVAL HOTEL GROUP |
Region:Central and Southern Europe
Sector:
Project No:009444
Projected Board Date:May 14, 1999
Company Name:Reval Hotel Group
Technical Partner and/or Major Shareholders
Reval Hotel Group''s main shareholders are the Baltic Republics Fund (42.5%), Inn Group Ltd. (17%), and Mercury Asset Management (18%).
Project Cost Including Proposed IFC Investment
Total project cost is up to US$30.7 million, including an IFC senior loan of up to US$8 million and an IFC equity investment of up to US$2 million.
Location of Project and Description of Site
The company and project are located in Tallinn, Estonia.
Description of Company and Purpose of Project
(include IFC’s Role and Development Impact)
Reval Hotel Group (“Reval” or “the Group”)manages three hotel properties: Hotel Olumpia (a 405 room full service business hotel) is 100% owned by the Group, Central Hotel (a 229 room full service mid-scale hotel) is 20% owned, and the Park Hotel and Casino (a 120 room full service mid-scale hotel) is operated under a management contract with no Reval ownership. The proposed project includes the construction of Express Hotel (a 166 room limited service budget hotel).
The proposed project is the expansion, strategic development, and financial re-structuring of Reval Hotel Group. Reval''s strategy is to become a leading mid-market hotel development and management company in the Baltic Region by consolidating its position in the Tallinn home market and expanding into neighboring commercial capitals, such as Riga, Vilnius, St. Petersburg and Kiev. The first phase of the Group''s strategy focuses on strengthening Reval''s position in the Tallinn hotel market by widening its range of products and consolidating the ownership of the main hotels currently under Reval’s management into the Group''s corporate structure.
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, liquid effluent disposal, waste disposal, use of CFCs in air conditioning and refrigeration equipment, fire protection and life safety, and employee training, health and safety programs. Reval commissioned an independent audit of its properties to assess compliance with World Bank guidelines for fire protection and life safety, and a Corrective Action Plan and timetable have been agreed with IFC and necessary expenditures have been included in project costs. For the managed property (Park Hotel), Reval will use its best commercial efforts to secure the needed funding from the property owner in order to install the recommended fire protection and life safety improvements.
The is from the Public Information Center.
| Host country location of environmental documents | Tallinn, Estonia: World Bank Office and Reval Corporate Office |
Date SPI sent to InfoShop: 7 April 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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