SHERATON HOTEL TO BE PAWNED AGAINST EUR10MN
The executive directors of Sofia Hotel Balkan AD - Ioannis Daskalantonakis and Dimitrios Konstantinopoulos launch negotiations with Bulgarian Post Bank AD for the release of an investment credit of up to EUR10MN. The decision was made at the general meeting of shareholders on August 23. The loan will be allocated for a period of 10 to 15 years at an annual interest equal to the quarterly LIBOR plus 1.6 to 3.5 points and will be guaranteed by a mortgage on the 5-star Sheraton hotel in the capital city (owned by Sofia Hotel Balkan AD). The money has been earmarked for the repair of 105 (of all the 188) rooms and for the renewal of the hotel's electricity installation and water and sewage network, the company's Administration Manager Haridimos Sianos explained to the BANKER weekly.The company's report, submitted to the Bulgarian Stock Exchange-Sofia shows that Sofia Hotel Balkan has posted a profit of BGN936,000 for the first six months of 2005, more than 30% up from the same period of last year. Revenues from core activity have decreases insignificantly, from BGN8.1MN to almost BGN7.5MN.The current shareholders in the company are: European Hotel Enterprises AD, with a 23.46% stake, and International Lodging of Bulgaria AD, also with a 23.46% stake (both are owned by the Greek family Daskalantonakis). Access EAD holds 15.89% of the company's capital, and the remaining shares are in the hands of numerous, small shareholders.