September 28 (SeeNews) - Croatian hotel operator Arena Hospitality [ZSE:ARNT] said it signed a deal on Tuesday to buy a 4-star mountain hotel in Austria's Carinthia for 112 mln kuna ($17.4 million/14.9 million euro) from K1 Hotelerrichtungs, part of Austrian real estate and investment company MID Holding group.
“This latest acquisition is a strategic fit that complements the gGroup’s summer leisure business and builds on the seasonal synergies which can be achieved due to the hotel’s close proximity to Croatia, from which the Group operates its leisure operations,” the company said in a filing to the Zagreb bourse.
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The hotel, Franz Ferdinand Mountain Resort, is located Nassfeld. It has 144 family rooms, a restaurant, bar, wellness facilities, and conference rooms.
Besides the hotel, the transaction includes the acquisition of two floors of an adjacent building comprising of a terrace which is envisaged for future development of a swimming pool, and a separate 21 rooms employee accommodation in Vellach in Carinthia.
Arena signed the deal through its subsidiary Sugarhill Investments.
In recent years, Arena Hospitality has expanded to Germany, Hungary and Serbia and, on completion of this transaction, Austria, further strengthening its position in the central and eastern Europe, according to the statement.
Arena said it will try to complete the transaction prior to the start of winter season 2021/2022.
Arena said in the same statement that the announcement coincides with the start of development works on its luxury hotel in Zagreb city centre and that the development and repositioning of its luxury Hotel Grand Brioni in Pula, Croatia, is progressing well and is nearing its final stage.
Arena's shares traded at 318 kuna on the Zagreb bourse on Tuesday afternoon on the Zagreb bourse, up 0.63% from the previous closing price as 82 shares changed hands.
(1 euro=7.502 kuna)