The new loan is split equally between the two lenders, is due 2033, and bears a fixed interest rate of 2.6%.
Arena Hospitality Group published an announcement on the Zagreb Stock Exchange announcing that the company has entered into a new c. HRK 180.0m (or EUR 24m) loan agreement for the repositioning and redevelopment of Hotel Brioni in Pula.
Phase one of the repositioning and redevelopment of Hotel Brioni started in January of 2020. Phase two is currently underway and the opening of the repositioned hotel is expected to take place ahead of the 2021 summer season. Arena notes that the hotel will be repositioned as a luxury upper upscale hotel with 227 rooms building upon the hotel’s status and reputation, with the ambition for it to become the best in class hotel in Pula and the surrounding area.
The overall repositioning programme is expected to be approximately HRK 260m and the new c. HRK 180m long-term loan agreement will partly fund this repositioning and development. Meanwhile, the remainder will be funded from existing cash reserves. As of 9M 2020, the Group operated with a cash (and cash equivalents) position of HRK 522.8m, while their net debt amounted to HRK 866.9m.
The new loan is split equally between the two lenders, is due 2033, and bears a fixed interest rate of 2.6%.
Arena notes that pipeline of the Group for the short to medium term include:
- completion of the acquisition and takeover of hotel 88 Rooms in Belgrade in early 2021
- the repositioning of campsite Stoja in Pula into an upper scale campsite
- conversion of an iconic building in a prime location in the heart of the city of Zagreb into an upper scale 113 bedroom hotel
- refurbishment of hotel Riviera in the heart of the city of Pula.
