The company Lampsa Hellenic Hotels SA announces that on Friday May 18th , 2007 a contract was signed with EFG EUROBANK ERGASIAS SA for the issue of common bond loan for seventeen years and for the amount of U.S. dollars 33.500.064,00, after the approval of the company Board of Directors meeting held on Friday April 27th , 2007. To be reminded that the Company has decided to exercise its call option, through two subsidiaries, for the purchase of the shares (the price being the acquisition cost) of the company Belven Associates, which is the owner of a loan of $ 33.269.892, 57 granted to the company Beogradsko Mesovito Preduzecee A.D.. This loan is secured by a mortgage on the hotel. The terms of the loan are considerably favourable based on the present situation .The relevant transaction will be actualized at Monday 2 April 2007 and for the payment of the amount the company was funded by part of an available bank overdraft loan.
The Board of the Directors negotiated special terms of loan with EFG EUROBANK ERGASIAS SA for the re-financing of the above overdraft loan through the Bond loan, resulting to the further substantial improvement of the financial results due to the decrease of the financial cost.
The Board of Directors believes that the purchase of the shares of the two above mentioned subsidiaries of company Belven Associates, will have a positive impact on the financial results of our company.
During the first quarter of current fiscal year, the turnover of both mother company (Hotel Grande Bretagne) and group ( Hotel Hyatt Belgrade), is performing considerably positive, in comparison with the same period of last year, presenting an occupancy increase of 15% and revpar increase of 25% for the Hotel Grande Bretagne and an occupancy increase of 3% and revpar increase of 12% for the Hotel Hyatt Belgrade.