Bulgaria seeks Chinese investors for resort development

Chinese investors are poised to spend about $294 million to develop seaside resort properties and build a cargo airport near Sofia, Bulgaria.

Ilian Scarlatov, a managing partner at Mane Capital AD in Sofia (which is advising the deals), told Bloomberg that investments would cover the financing to build hotels, villas, a marina port and a casino in the Thracian Cliffs golf resort on the Black Sea. Scarlatov declined to identify the Chinese investors until transactions are complete, but estimated that the transactions would be finalized within three months and that construction would begin in the summer. 

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

This deals could be a windfall for Bulgaria, which is the European Union’s poorest member and is looking to boost its tourism scene as its overall economy grows. Last week, Prime Minister Boyko Borissov predicted that the country's economy will expand more than 3 percent this year, after growing 2.9 percent from a year earlier in the third quarter.

Leisure businesses in Bulgaria, where tourism accounts for 11 percent of economic output, are looking to Asian markets to attract affluent tourists. One Chinese group plans to set up a special-purpose company to raise the capital of Thracian Cliffs Golf and Spa Resort AD by 204 million euros, Scarlatov said. That will enable it to build a seven-star Chedi Hotel and Villas, a 100-berth marina port with an adjacent village and a casino hotel in the next four years, he said.

Suggested Articles

Accor launched a €300m share buyback as part of its plans to return €1bn to shareholders over the next 24 months.

Apex Hotels reported full-year revpar growth of 2.4%, driven by an investment of £9m in its estate.

The UK’s hospitality sector needs to do more to promote sustainability, according to the latest UKHospitality/CGA Future Shock Report.