Accor signs sale & lease back contract with Erste

16. Oktober 2006, 00:00

The Novotel hotel in Bucharest was sold by its owner, hotel group Accor, to a real estate unit of Austrian Erste...

The Novotel hotel in Bucharest was sold by its owner, hotel group Accor, to a real estate unit of Austrian Erste Bank. The two companies have signed a sale &lease back contract with a value estimated at EUR 30-40 million.

"It is not a proper sale, it is a sell & lease back contract. This means that we first sell the hotel and then lease it," said Frederik Deman, manager of Novotels sales and marketing department, without revealing the duration of the contract.

Sale & lease back contracts allow the seller to keep using the sold assets through a long-term lease contract.

The recently-completed Novotel hotel is located in the centre of Bucharest. It has 242 rooms, 9 junior suites, 6 suites and a presidential apartment. It also provides 24 hour secure parking, indoor swimming pool, 4 multifunctional meeting rooms with natural light and 1 auditorium for up to 280 people, a contemporary restaurant and a stylish bar.
Eastbusiness.org
In cooperation with and under the responsibility of Eastbusiness, the business information service for Central and Eastern Europe

You can subscribe to the following newsletters
Eastexpress
CEE-Country
Share if you care.