Pannonia Sells Hyatt Budapest

BUDAPEST— Pannonia Hotels fetched €50 million (US$47.23 million) for the sale of its partial stake in the Atrium Hyatt Regency Hotel Budapest here to HVB Leasing Hungary (HVB), a subsidiary of Bank Austria Creditanstalt Leasing, and ultimately Hypo Vereinsbank of Germany. HVB becomes the sole owner of the hotel. Pannonia Hotels, partly owned by Accor, maintains its interest in the 351-room property through a 22-year operating lease. The hotel will continue to fly the Hyatt flag. The transaction has reportedly put Pannonia into the most stable financial position it has ever known, backed by cash and assets valued at more than €83 million (US$78.4 million). SOURCE: HVS International