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Summary of Project Information (SPI) |
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| Project number | 8125 |
| Project name | Global Hotels Development Group Poland S.A. |
| Country | Poland |
| Sector | Accommodation & Tourism Services |
| Department | Global Manufacturing & Services |
| Company name | Global Hotels Development Group Poland S.A. |
| Environmental category | B |
| Date disclosed | April 23, 1998 |
| Status | Active |
| Previous Events | Invested: February 12, 1999
Signed: December 18, 1998
Approved: June 30, 1998 |
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Summary Of Project Information (SPI)
| Project Name | Poland-Global Hotels |
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| Region | Europe |
| Sector | |
Project No008125
Projected Board DateMay 27, 1998
Company NameGlobal Group of Companies
Technical Partner and/or Major Shareholders
Global Group of Companies, Polish Enterprise Fund
Project Cost Including proposed IFC investment
Total project cost is estimated at US$39 million with IFC investment of up to US$10.7 million, including senior loan, subordinated loan and equity.
Location of project and Description of site
Hotels will be located in major regional cities of Poland. First hotel, 144-room Holiday Inn Core will be located in Gdansk, Poland’s major port city located on the Baltic Sea with population of 890,000 in the metropolitan area. The site is conveniently located opposite the railway station and adjoining the Old Town in a highly visible location on one of the main roads in the city center. The hotel is being built on the site of the former Monopol Hotel and is scheduled for opening in late 1998. Several other sites are under development in various parts of Poland.
Description of Company and Purpose of Project
The project involves development and operation of a chain of three-star hotels in major regional cities of Poland, under a “Preferred Terms” franchise agreement with Holiday Inn Worldwide (“HI”). The proposed financing covers the first 4-5 hotels of the chain. They will generally be low to mid-rise construction, typically have 100-150 rooms, and include both new construction and refurbishment of existing properties. They will operate under several existing Holiday Inn formats: HI Core, HI Express, and other HI brands. The ultimate goal of the Company is to build a hotel management company which will own and manage a portfolio of hotels. IFC will play a key role in this transaction by providing equity, quasi-equity and long term debt financing for the project which is developed by a private Polish company supported by an international equity fund with significant Polish market experience. IFC’s involvement will strengthen the deal structure and will provide comfort to other equity investors through our inputs to the business concept, development strategy, and management arrangements. The project will contribute to regional development of Poland’s business infrastructure. It will help to overcome Poland’s shortage of quality hotel accommodation outside of capital city which inhibits development of business and tourist travel. By attracting investors to Poland’s regions, the project will help to spread benefits of economic development outside of Warsaw and create job opportunities in the service industry.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with the project include: site selection for new hotels, environmental compliance of existing hotels which will be refurbished, liquid effluents treatment, solid waste disposal, water supply, recovery of dry cleaning solvents and use of refrigerants. Health and safety issues include fire safety and emergency response. Hotels will be connected to the city sewer systems. Should municipal sewage treatment facilities not be adequate, the Sponsor has committed to install in-house waste water treatment facilities to meet IFC and World Bank requirements. Solid waste will be collected and recyclable material, where such recycling is available in Poland, will be separated and disposed of by the municipality at designated landfill. Water for the hotel operation as well as fire protection will be supplied by the local water authority. The Sponsor has committed that all cold storage and central cooling system will be CFC-free. All hotels will meet fire safety requirements, including installation of sprinkler systems, and will be designed to meet World Bank fire safety guidelines.
The is from the Public Information Center.
| Date SPI sent to PIC | April 23, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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