Construction Work In Albena To Stop For Indefinite Time

Resort operator Albena AD would stop construction work in the Black Sea resort with the same name in the upcoming several years, Dnevnik daily reported, quoting CEO Krassimir Stanev.

The decision, made during a shareholders meeting held on June 14, was provoked by the fact that many of the hotels in the resort needed to be torn down as being outdated and architecturally unattractive, Stanev was quoted as saying.

Moreover, even the hotels built in recent years did not fit the already established architectural pattern, Stanev said. Even one of the newest additions, the five-star Flamingo Hotel with luxury suites and studios, appeared as an out-of-place patch, he said.

Construction work will resume only when a general development plan for the resort is approved, as the company intends to seek the advice of foreign architects.

For 2007, Albena AD voted a dividend per share of 0.5 leva. The company reported a revenue of more than 17 million leva last year.

Dnevnik daily reported that during the shareholders meeting, Stanev was mandated to secure a 2.5 million euro loan from Albena Invest Holding, with a seven-year payoff period and a year-long grace period. In return, the company offered a signed contract with My Travel tourist agency, which includes collaboration with seven hotels in the resort.

Albena AD’s investments in 2007 come close to 56 million leva and the company is planning to pour in another 50 million leva this year. The money will go toward the completion of the third stage of Flamingo Hotel building, to the renovation of Gergana and Albena Beach Club hotels, as well as the purchase of agricultural land.

The expected revenue for 2008 is 20 million leva, which is a four per cent increase compared to last year.