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Slovenia Business Week no. 34: Istrabenz Consolidates Tourism Holding

Shareholders of hotel companies Hoteli Morje and Hoteli Palace (both are subsidiaries of Istrabenz) endorsed a merger in what has been described as the most important event in Istrabenz's tourism business

Shareholders of hotel companies Hoteli Morje and Hoteli Palace (both are subsidiaries of Istrabenz) on Friday, 19 August endorsed a merger in what has been described as the most important event in Istrabenz's tourism business. All Istrabenz hotels will get a new name - Life Class hotels & resorts.

The merger is expected to cut costs and improve performance in Slovenia as well as abroad, according to Hoteli Morje chairman Tomislav Ceh. He said the formalities would be completed by the end of the year.

The merged company will have 797 rooms with 1,554 beds in the centre of the seaside resort Portoroz, as well as a congress centre with seven halls that can accommodate 1,000 guests. The company said it will focus on wellness, spa and business tourism.

The share swap ratio has been set at 9.26 Hoteli Palace shares for one Hoteli Morje share. Additionally, the Hoteli Morje share capital will be increased by SIT 570m (EUR 2.4m) with the issue of 95,124 new shares.

One of the biggest projects for the company this year will be the refurbishment of the Terme Palace spa, which will get a medical centre and a centre for Indian massage.

In the future, the company hopes to link the hotels with the nearby beach, which is currently impossible as the beach is cut off by a busy main road.

Source: Slovene Press Agency STA

Author: STA