Entrea Capital assisted an upscale Spa Hotel in a Sale-and-leaseback transaction

Entrea Capital assisted an upscale Spa Hotel in a Sale-and-leaseback transaction

Entrea Capital assisted an upscale Spa Hotel in a Sale-and-leaseback transaction

Client: Spa Hotel
Status: Private
Sector: Hotels
Revenue:
Web: www.hotel-astraea.com
Seller: Immorent
Status: Private
Sector: Financial Services
Revenue:
Web: www.immorent.com

Client: Spa Hotel

  • A luxurious spa hotel, located in the Sredna Gora mountains. It offers its guests high class services and a wide range of curative, rehabilitation and beauty procedures

 

Transaction Partner: Immorent

  • Immorent is a fully owned subsidiary of Erste Group Bank AG. The Company finances real estate and auto leasings. Immorent also offers investment project management services, real estate management services and construction works management services

 

Situation Overview & Solution

  • A 4-star spa hotel in Hissar, one of the most famous Bulgarian spa resort areas
  • The hotel development was managed by a private entrepreneur and towards the end of the construction phase it required refinancing of its construction loan
  • The refinancing was needed to allow the hotel sufficient time to start operations and gain traction through attracting customers and generating initial revenues

 

Entrea Capital’s Role and Value Added

  • Entrea Capital advised the owner of the hotel to explore refinancing via a sale-and-leaseback led by Immorent, marking the fist such transaction for a hotel in Bulgaria at the time. Entrea Capital advised the owner of the hotel on:
  • Reviewing and evaluating all possible refinancing options on the market
  • Selecting the most suitable option, based on a number of preset criteria (price, maturity, collateral required, etc.)
  • Led the negotiation with Immorent on behalf of the owners of Astrea Spa Hotel and successfully closed the transaction