WASHINGTON, D.C., March 1, 1999 –The International
Finance Corporation has invested US$2.7 million and acquired a 21% stake
in Global Hotels Development Group Poland S.A. to develop a chain of Holiday
Inn hotels in regional cities of Poland.
IFC's total investment in the project will comprise US$3.6 million in equity
and US$7.2 million in long-term loans, as part of a US$43 million package
for the first phase of the chain's development.
Global Hotels Development Group Poland S.A. is a hotel management company
established by Global Group of Companies Sp. z o.o., the Polish Enterprise
Fund, and private investors. It was formed to open and operate 20 Holiday
Inn-franchised hotels in Poland over the next 10 years. Polish Enterprise
Fund, managed by Enterprise Investors, is the lead equity investor in this
Global Hotels opened its first Holiday Inn hotel in January 1999, in the
center of Gdansk, Poland's main port city on the Baltic Sea. Several other
hotel sites are under development in various parts of Poland, with opening
of the Wroclaw Holiday Inn scheduled for the end of 1999.
Mr. Harold Rosen, IFC Director for Central and Southern Europe, said that
the project is designed to encourage private investment in Poland's regions
and will help to overcome the shortage of quality hotel accommodation outside
of the capital city. By facilitating development of business and
tourist travel, the project will help to spread benefits of economic development
outside of Warsaw and create job opportunities in the service industry.
IFC, a member of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets, and providing technical assistance and
advice to governments and businesses.IFC has been investing in Poland since
1988 and has approved investments of $556 million in equity and loans for
30 projects in sectors including manufacturing, services and banking.