Fund raising for Victoria Hotels

Dunarea Group, leader in the tourism services market in Galati county, is currently developing a four-star hotel chain across Romania.  Dunarea SA commissioned Bridge Europe Consulting in September 2006 to draft the business plan and to develop the financial model for a new four-star chain of boutique hotels.  Bridge Europe Consulting’s work has also enabled Dunarea’s management to define the correct pricing strategy and to establish the right economical parameters for the investment. 

In addition, we have been mandated to raise the finance for the entire project.  We have negotiated with several Romanian and British Banks, and we have selected the bank that offered the best financing terms.  We have completed a fund raising exercise of EUR 10.8m, which includes both development capital for the new chain, and refinancing of an existing loan facility.  We consider a real success obtaining this financing for the first two hotels of the chain, which will be start-up built, the loan having an interest of only 2.25% over EURIBOR, especially during the financial crisis of 2008, moment when the contract was signed.