Rezidor sells minority share in Estonian real estate keeping management contract for the Radisson SAS Hotel Tallinn
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Rezidor sells minority share in Estonian real estate keeping management contract for the Radisson SAS Hotel Tallinn
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Category: Europe
This is a press release selected by our editorial committee and published online for free on 2007-08-02
The Rezidor Hotel Group sells its minority share of 14.1% in the RDS Hotelli AS, owner of the 280-room Radisson SAS Hotel Tallinn, Estonia – in a deal where the UK investor Boultbee acquires 100% of the real estate (effective August 1, 2007). Rezidor announces a capital gain of 3.2 MEUR and a cash impact of 6.7 MEUR. Rezidor’s management agreement with the hotel operator Astlanda Hotelli AS is not affected by the sale and retained on unchanged terms and conditions.
In line with the asset light strategy, Rezidor has divested all of its real estate over the past several years and only holds minority stakes in a small number of properties. “This transaction means a good opportunity for us to exit our minority investment in the hotel while keeping the management agreement”, comments Kurt Ritter, President & CEO of The Rezidor Hotel Group, “and in addition it strengthens our relationship with a well-established and long-term investor active in the real estate business.”
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