Hotel Lietuva

completed

The proposed project consists of the refurbishment and repositioning of Hotel Lietuva in Vilnius, Lithuania. 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. Linstow International AS of Norway (the sponsor) acquired a majority of the company that owns the hotel in 1998. The proposed project cost is estimated to be US$36.5 million equivalent, to be financed by sponsor equity and IFC A and B loans. The hotel is located in the Šnipiškës district of Vilnius, Lithuania, about 200 meters up from the north bank of the Neris River. A major four lane road (Ukmergës) runs on the north side of the hotel, with a parallel secondary road (Upës) on the south side. The area surrounding the hotel is a mix of shops, offices, public buildings, and parks. Opened in 1982, Hotel Lietuva is about a 10 minute walk from Vilnius’ historic Old Town and provides easy access for cars and buses. Originally designed as a landmark hotel with 324 rooms on 18 floors, the hotel has suffered from insufficient maintenance and a lack of upgrading. The refurbished hotel will have 275 rooms, as well as restaurant, bar, conference and banquet facilities. The sponsor plans to renew all of the internal infrastructure, upgrade all common areas and the façade, and improve fire and life safety standards to conform with EU and World Bank guidelines. The renovation is expected to start in the second quarter of 2002 and to be completed within 12 months.