SOFIA (Bulgaria), May 19 (SeeNews) - International hotel chain Kempinski signed on Thursday a contract to manage a third five-star hotel in Bulgaria, attracted by the country's booming tourism industry. Kempinski Hotel Grand Hermitage, located in the Zlatni Pyasatsi resort north of the city of Varna on the Black Sea coast, is worth up to 39 million euro ($50 million). The hotel was built by Luxembourg-based Sigma Capital Leisure and Tourism Company. The project was backed by a 13 million euro 10-year loan from the European Bank for Reconstruction and Development (EBRD) and a 10 million euro loan from Credit Suisse First Boston (CFSB). "This is the first direct tourism financing that the bank has done in Bulgaria," EBRD's director for Bulgaria John Chomel-Doe told a news conference. "We want to create a portfolio of tourism and property investment in the country." Chomel-Doe also said the EBRD would finance the construction of another hotel in Zlatni Pyasatsi and some property investments in Varna and the Bulgarian capital Sofia, but declined to elaborate. Kempinski Hotel Grand Hermitage, which spans over an area of 30,000 square metres, will be opened at the end of June or at the start of July. It is one of the biggest hotels of Kempinski chain with some 730 rooms. "Our presence may attract also other high quality chains to the Balck Sea coast," Kempinski general manager for Bulgaria Josef Halbherr told reporters. Kempinski now manages one hotel in Sofia. The second hotel to be managed by Kempinski is based in the ski resort of Bansko and is expected to be opened within a few weeks. Tourism is one of the key sectors that drive the economy of Bulgaria, which features attractive sea, ski and spa resorts. The country of nearly eight million people attracted some four million tourists last year and the number of foreign tourists is expected to grow by around 10% this year. Sigma Capital was set up in 2002 by international investors with a goal to become the leading developer of hospitality real estate on the Bulgarian Black Sea coast. The company plans to develop around 3,000 rooms in four-star and five-star hotels along the seacoast. ($=0.7904 euro) www.see-news.com

May 19, 2005