Israeli group Elbit Imaging has reportedly signed a letter of intent to sell its majority stake in the company that owns the Radisson hotel complex in Bucharest to an international investment fund. According to the non-binding letter, the property is valued at an estimated €177.5 million.
The Radisson complex includes the 487-guestroom Radisson Blu hotel, the newly renovated 276-guestroom Park Inn Hotel and a commercial area that includes the biggest Casino in Bucharest, a fitness center and retail spaces. The Radisson Blu hotel and the Park Inn hotel are managed by Rezidor, part of Carlson Rezidor Hotel Group.
The deal could be closed in the next three to four months if the buyer submits a binding offer and gets financing. The deal also must be vetted by the Competition Council in Romania.
The seller is expected to use the net proceed to repay banks loans and to support working capital adjustments, according to a statement submitted by Elbit Imaging.
Bucuresti Turism, the company that owns the two hotels, is one of the biggest hotel companies in Romania. It had a turnover of €31.1 million and a net profit of €2.57 million, in 2016, according to the Finance Ministry.