Warimpex, the developer listed in Warsaw and Vienna, is going to build 80 hotels of economic class within several years in Central Europe. Jointly with Louvre Hotels it is going to spend EUR 300-500m within 5-7 years. Both companies will found a 50:50 joint venture. New hotels will be built in Poland, the Czech Republic, Hungary and Slovakia, but possibly in other countries as well.
In the first stage of the project, about 30 hotels worth EUR 150m will be built. Warimpex will build them while Louvre Hotels will mange them. The project will be launched in the middle of this year if Warimpex gets all necessary permits.
Warimpex has so far invested in four- and five-stars hotels. The company is the co-owner of Warsaw InterContinental and Hotel Sobieski. Since 1982, the company has invested over EUR 850m. The contract with Louvre Hotels is not a total surprise to the market because the CEO had said before the company’s IPO that the company would build economic hotels in the future. Investors liked the news, however. Yesterday the stock rose 7.47 percent to PLN 48.89 (12.64).
(PLN 1 = EUR 0.258)