|
|
 |
 |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
| |
| Project number | 11321 |
| Project name | Hotel Lietuva |
| Country | Lithuania |
| Sector | Accommodation & Tourism Services |
| Department | Global Manufacturing & Services |
| Company name | Viesbutis Lietuva |
| Environmental category | B |
| Date SPI disclosed | March 20, 2002 |
| Projected board date | April 19, 2002 |
| Status | Completed |
| Previous Events | Invested: September 12, 2002
Signed: June 26, 2002
Approved: May 17, 2002 |
|
| Project sponsor and major shareholders of project company |
| Viešbutis Lietuva, the company that owns Hotel Lietuva (the hotel), is 89% owned by Linstow International AS, a Norwegian property company. |
|
| Total project cost and proposed IFC investment |
| The total project cost is estimated to be US$36.5 million equivalent. The proposed IFC investment is an A Loan of up to US$9 million equivalent for IFC's own account and a B Loan of up to US$9 million equivalent for the account of at least two participant banks. |
|
| Location of project and description of site |
| The hotel is located in the Šnipiškės district of Vilnius, Lithuania, about 200 meters up from the north bank of the Neris River. A major four lane road (Ukmergės) runs on the north side of the hotel, with a parallel secondary road (Upės) on the south side. The area surrounding the hotel is a mix of shops, offices, public buildings, and parks. |
|
| Description of company and purpose of project |
The proposed project consists of the refurbishment and repositioning of Hotel Lietuva. The hotel, which targets the conference market currently underdeveloped and underserved in Vilnius, will be operated by Reval Hotel Group, a leading mid-market hotel operator in the Baltics. Opened in 1982, Hotel Lietuva was originally designed as a landmark hotel with 324 rooms on 18 floors, but has suffered from insufficient maintenance and a lack of upgrading. The refurbished hotel will have approximately 275 rooms, as well as restaurant, bar, conference and banquet facilities. The sponsor plans to renew all of the internal infrastructure and upgrade all common areas and the faēade. The renovation is expected to start in the second quarter of 2002 and to be completed within 12 months.
The renovation of Hotel Lietuva will create high quality mid-market accommodation for business and tourism development in Lithuania, fostering a conference market that will support related industries such as restaurants, retail, and transport, as well as suppliers to the hotel. The project is also expected to bring social and economic benefits in the surrounding area, which the city of Vilnius has targeted for extensive commercial development.
IFC's role in the proposed project is to provide long-term financing which is not currently available in Lithuania at a reasonable cost, and to mobilize additional capital, fostering foreign direct investment flows into the country. IFC’s presence will help ensure that the environmental and fire and life safety standards of the refurbished hotel conform to World Bank Group guidelines. |
|
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
|
|
| Location of environmental documents in locally affected community |
| The ERS is located in five municipal offices in Vilnius City: Senamiescio, str Pilies 36; Karoliniskiu, Asanaviciutes 20/2; Snipiskiu, str Juozapaviciaus 10A; Lazdynu, str Erfurto 29; and Naujamiescio, str Gedimino 24. |
|
| To contact the project company, please write to: |
Kristen Fenster, IFC Investment Officer
e-mail: kfenster@ifc.org |
|
|
|