Project description
and objectives:
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The proposed project is a financial package consisting of equity investment
and senior debt to be provided to GS Hotels and Resorts, a leading Croatian
hospitality group known also as Adriatic Luxury Hotels.
The proceeds of EBRD financing aim to help develop:
(i) high quality, environment-friendly tourism facilities in Croatia, by
assisting the restructuring and development of GS Hotels and Resorts; and
(ii) similar tourism facilities in neighbouring countries, e.g. FYR Macedonia,
Bosnia & Herzegovina and Montenegro, by providing GS Hotels and Resorts with
sufficient financial depth to export its experience of hotel development and
operations in these countries.
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Transition impact:
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The transition impact of this project stems from:
(i) a thorough restructuring of the company, including introduction of best
international practice corporate governance features, e.g., division of hotel
management and real estate into different corporate structures, establishment
of a supervisory board, improved management information system; and
(ii) the sustainable expansion of the company, allowing the company’s
management to apply their experience on the Croatian market to neighbouring
countries.
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The client:
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GS Hotels and Resorts Ltd., a limited liability company incorporated in the
British Virgin Islands, to be restructured to consolidate control over
property and management interests in 5 hotels located in Croatia.
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EBRD finance:
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EUR 25.1 million equity investment into GS Hotels and Resorts.
EUR 27.5 million senior loan to property subsidiaries of GS Hotels and
Resorts.
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Total project cost:
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EUR 330 million.
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Environmental impact:
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Screened B1. The project may result in some future environmental impacts,
which are not expected to be significant and which can be readily identified
and assessed. Therefore, the EBRD has classified the project B/1 and an
Environmental Analysis of the planned expansion programme and an Environmental
Audit of the existing facilities has been undertaken by independent
environmental consultants. Environmental audits have been carried out for the
five hotels under the Project by an independent consultant in October 2006.
The environmental due diligence based on the audit report identified the
following main issues:
In general, environmental performance at the hotels is satisfactory. All of
the hotels have a good understanding of the environmental regulations that
affect their operations and have assigned duties to staff and prepared
procedures that achieve compliance with relevant regulations. The Company
however needs to develop environmental, health and safety systems at the group
level.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Marino Cehic
Grupa Jadranski Luksuzni Hoteli d.o.o.
Dolac 4
51 000 Rijeka
Croatia
Email: Marino.cehic@alh.hr
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EBRD contact:
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Zlatko Greguric, Operation Leader: greguriz@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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