Belgrade - Auction sale of hotel "Jugoslavija" on June 30, 2005, hotel + land of 3 ha - 42 million EUR

Sale of “Jugoslavija” hotel should be the boom in the privatization of hotel companies. At the auction, which is scheduled for June 30, 2005, the starting price of “Jugoslavija” will be 42,372 million EUR with the deposit of 2.96 million EUR. The condition for procurement is that all the money is paid at once.

“Jugoslavija” hotel has 4 stars, eight floors, it is settled at the mouth of the Sava river and the Danube, it has about 53,000 square meters at its diposal, 130 rooms and 18 suites. The main advantage of “Jugoslavija” is its location. The facility of that size, if it was built on grass-plot, it would have public utility expenses of about 21 million EUR. There is possibility that the hotel will be sold together with 3 ha of land, which can be used as building site for some new facility. The value of the building should be added on all that and it is not at all small in spite of socially realistic architectural looks.

It is expected that some world hotel chain, such as "Sheraton" or "Hilton", will bid on tender. The Privatization Agency is only the moderator of that process. “Dunav osiguranje” is the owner of “Jugoslavija” hotel. Another two hotels are property of “Dunav osiguranje”: Belgrade-based “Metropol” and hotel “Zlatibor” on Zlatibor mountain. There are no information when will these 2 hotels be sold, but it is assumed that it will be this year.