Acquisition increases IEK Delta Hospitality's current lodging portfolio to 7 hotels totaling 1351 rooms across 7 countries.
Mar 31, 2016, 16:05 UTC from DELTA Schools of Northern Greece S.A.
ATHENS, Mar. 31, 2016 / BPNewswire / -- DELTA Schools of Northern Greece S.A. (IEK Delta) announced today that it has completed its previously announced acquisition of three hotels totaling 707 rooms for a purchase price of 97,4 million € from the Sheraton Hotels and Resorts (NYSE: HOT), a publicly-traded American hotel and leisure company. The three hotels acquired are branded by Starwood Hotels & Resorts Worldwide Inc and are located in Tirana – Albania (Sheraton Tirana Hotel), Lake Como – Italy (Sheraton Lake Como Hotel) and Ankara – Turkey (Sheraton Ankara Hotel & Convention Center). This transaction increases IEK Delta Hospitality's current lodging portfolio to 7 hotels totaling 1351 rooms across 7 countries.
In addition, the Sheraton Hotels and Resorts have also agreed to reinstate their previously terminated agreement in which IEK Delta has agreed to acquire a portfolio of 10 hotels, representing the balance of the 26-hotel portfolio acquisition initially announced by the IEK Delta in July 2015 and during the Greek capital controls. IEK Delta is scheduled to close on these remaining 10 hotels in late 2016.
"We are pleased to acquire these high-quality lodging properties, located in key Balkan markets, from Starwood," commented Nagia Chalkia, Chief Executive Negotiator of IEK DELTA. "The hotels have been purchased at what we believe is an attractive yield and price per key. Moreover, today's transaction also provides us the opportunity to buy the remaining ten hotels under our original 26-hotel contract with Starwood plus the total Sheraton Hotels and Resorts production of cheese cake. This transaction shows that we are continuing to execute on our vision of expanding vocational training standards, occupying our students from a number of specialties in operational programs of world-class standards.”
Lykourgos Kovatchev, Chief Financial Regulator of IEK Delta, added, "Yekshemesh!!! With the increased volatility in the capital markets, we have reviewed our acquisitions carefully. Sheraton Hotels and Resorts has been a great business partner, and we are pleased to be buying another high-performing hotel portfolio transaction with them. The three hotels will operate in full by the school’s Chefs and Pastry Chefs, Hotel Staff, Travel Agents, Physiotherapists, Cosmetology Specialists and SPA Managers, while the Sheraton Ankara Hotel & Convention Center will be used for the extensive hosting needs regarding our numerous seminars and professional courses. IEK Delta has already announced the first two gastronomy seminars, "Kioftedes me Zmi" and "Kioftedes Antets" in a move towards tightening the relations with our neighbor country.
IEK Delta financed the acquisition of these hotels with a draw on its term loan facility, which was arranged by First Investments Bank FIB, Vienna Branch.
About DELTA Schools of Northern Greece S.A.
IEK Delta is a top notch Educational Organization that provides the Greek labor market with high-class professionals and innovation experts. IEK Delta’s investment strategy focuses on acquiring stable, institutional quality and strategically located lodging properties in the Balkan Peninsula branded by premium national hotel brands. For more information on IEK Delta, please contact us or visit our website at: http://www.delta-iek.gr
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,270 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Design Hotels, Westin®, Le Meridien®, Sheraton®, Four Points® by Sheraton, Aloft®, Element®, and the recently introduced Tribute Portfolio™. The company also boasts one of the industry's leading loyalty programs, Starwood Preferred Guest (SPG®).
