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Sun, Feb 05 2012
Hilton shares go up for sale
The terrorist attacks in the U.S. had a negative impact on the business of the Hilton Sofia hotel, the Sofia Municipality announced on Saturday. The municipality is a shareholder in the company that owns the hotel, Compagnie des Hotel de Luxe S.A.
Some $100,000 worth of bookings have been cancelled, the municipality said, most of them by U.S. companies who have decided not to send any corporate travellers to Bulgaria. The hotel's occupancy rate since it opened on March 1 has been 60 to 70 per cent.
On Friday, the Sofia Municipal Council decided to sell its stake in the hotel. As a shareholder, the municipality made a non-cash contribution valued at $4.4 million and it controls 21.64 per cent of Compagnie des Hotel de Luxe S.A. Under the company's articles of association, the municipality has to first offer its stake to the other shareholders. CIBEX owns 40.2 per cent of the hotel, Hilton International holds 19.7 per cent, and Glavbolgarstroi has 18.36 per cent of it.
The municipality will also sell its shares in the Hali shopping centre, Gurko 1 Business Centre, Bankya Klimati and the Millennium Centre. The councillors asked Mayor Stefan Sofianski to suggest ways of selling these holdings according to the contracts and articles of association it is bound by. All contracts require the Sofia municipality to first offer the shares to other shareholders.
The five projects were incorporated for the purpose of construction of sites of urban significance. In all instances, the Sofia Municipality's contribution was the land for development.
The interest of the municipality is exhausted with the completion of the construction projects and it is only natural that it should withdraw, said the secretary of the City Council, Assen Dyulgerov. According to him, no significant dividends are expected from these projects in the near future and the sale of the shares will help raise money to pay back the city's issue of 100 million leva in Eurobonds which mature next year.
Some $100,000 worth of bookings have been cancelled, the municipality said, most of them by U.S. companies who have decided not to send any corporate travellers to Bulgaria. The hotel's occupancy rate since it opened on March 1 has been 60 to 70 per cent.
On Friday, the Sofia Municipal Council decided to sell its stake in the hotel. As a shareholder, the municipality made a non-cash contribution valued at $4.4 million and it controls 21.64 per cent of Compagnie des Hotel de Luxe S.A. Under the company's articles of association, the municipality has to first offer its stake to the other shareholders. CIBEX owns 40.2 per cent of the hotel, Hilton International holds 19.7 per cent, and Glavbolgarstroi has 18.36 per cent of it.
The municipality will also sell its shares in the Hali shopping centre, Gurko 1 Business Centre, Bankya Klimati and the Millennium Centre. The councillors asked Mayor Stefan Sofianski to suggest ways of selling these holdings according to the contracts and articles of association it is bound by. All contracts require the Sofia municipality to first offer the shares to other shareholders.
The five projects were incorporated for the purpose of construction of sites of urban significance. In all instances, the Sofia Municipality's contribution was the land for development.
The interest of the municipality is exhausted with the completion of the construction projects and it is only natural that it should withdraw, said the secretary of the City Council, Assen Dyulgerov. According to him, no significant dividends are expected from these projects in the near future and the sale of the shares will help raise money to pay back the city's issue of 100 million leva in Eurobonds which mature next year.
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