Fund buys Tallinn Hilton in Estonia one month after opening

Stockholm-based East Capital Baltic Property Fund III has purchased the 202-room Hilton Tallinn Park in Estonia for €48 million from Olympic Entertainment Group subsidiary Jessy Investments (via fellow subordinate Kesklinna Hotelli).

The operators of both the Hilton Tallinn Park Hotel and Olympic Park Casino, which opened just last month, are part of the OEG group and will remain contracted on a long-term basis.  

“The aim of the sales transaction is to release capital that has been invested into real estate and to focus on the core business of the group – operating casino and entertainment complexes,” Olympic Entertainment Group CEO Madis Jääger said in a statement. “The hotel and casino operations that are in the building are not part of the sales transaction and will continue to be owned by OEG group.” 

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


After completing the transaction, the non-current assets of OEG group will decrease by approximately €30 million, Jääger said, and liabilities will decrease by €25 million. The profit from the sales transaction, taking into account transaction-related costs, is approximately €17 million. 

Launched in August 2015, the €100-million East Capital Baltic Property Fund III is East Capital's third vehicle since 2005 to target the real estate sector in the Baltic with investments in high-quality commercial properties within retail, office and logistics in Tallinn, Riga and Vilnius. The fund is tailored for institutional investors. 

 

Suggested Articles

Maestro now can be deployed in any combination of Windows, a browser or on a tablet while providing a centralized view of the guest.

The companies will be managing properties in Maryland and North Carolina, respectively.

Caesars Palace and the Four Seasons Hotel in New Orleans will get new restaurants from celebrity chefs early next year.