Irish Quinn Group completes take-over of Sofia Hilton hotel

May 11, 2006 - Dnevnik

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Irish investment fund Quinn Group completed the take-over of the Sofia Hilton after the last holdout shareholder, the Sofia municipality, sold off its stake in the hotel on Wednesday. According to unconfirmed information, group owner Cavan-based billionaire Sean Quinn paid some 16 million Euro for the hotel.

One of the likely encumbrances for the new owner is the $23 million loan extended for the construction of the hotel by the International Finance Corporation, the private sector arm of the World Bank. This is Quinn Group's first investment in Bulgaria but it will not be its last, said Alan Hynes, director at the company. The Quinn executive did not reveal the company's future target acquisitions but said a couple of commercial properties in Sofia are under consideration.

The Sofia municipality was the shareholder in Compagnie des Hotels de Luxe S.A., the owner of the Sofia Hilton hotel, that negotiated the highest prices for its stake, 0.75 levs per share at a nominal value of 1 lev.

Two of the other shareholders, France's Sibex and Hilton International, sold at 0.50 levs per share while construction company Glavbolgarstroy cashed its stake at 0.64 levs per share.

Quinn acquired 49% of the 246-bed Sofia Hilton from Sibex in mid-2005. The French company did not notify the pending transaction to the other shareholders. The Bulgarian companies threatened legal action, giving them leverage to have their stakes bid up.

The Sofia Hilton, which opened in March 2001, cost $43 million levs. The Sofia municipality contributed the construction site.

The hotel reported an occupancy rate of 70% for 2005, up 10% over 2004.