Estonia, Good for Business, Latvia, Mergers and take-overs, Real Estate, Tourism

Hestia Hotel Group head Kaisa Mailend said that Radi Un Draugi is a well-functioning and successful hotel, and its principles are the same as those of Hestia, including the group’s ambition to develop and strengthen offer of good quality three and four star hotels in the Baltic states.

She said that the most significant changes after the merger will be in IT solutions that will improve customer service quality.

“Riga is the Baltic region capital in terms of business and tourism, therefore demand for accommodation in Riga is growing,” said Mailend.

Hestia Hotel Group already operates Hestia Hotel Jugend at 11 Pulkveza Brieza Street in Riga and seven hotels in Estonia, six of which are located in Tallinn.

As reported, Estonian company has acquired the company operating Radi Un Draugi hotel in the Old Town of Riga and has renamed the hotel to Hotel Property Old. Since late May, the new owner of the hotel is Hotel Property belonging to Estonian businessmen – Estonain citizen Otto Tamme (50%) and Estonian-registered company Osauhing Vikton (50%), the true beneficiary of which is Estonian citizen Paavo Kiik. Earlier, the sole owner of the hotel operator - Anglijas Daugavas Vanagu Finda Viesnica Radi Un Draugi - was The Latvian Welfare Trust.

The operator of Radi Un Draugi hotel last year reported EUR 1.454 mln in turnover, up 11.2% y-o-y, while its profit shrank by 22.1% to EUR 36,013.

The four-start Radi Un Draugi hotel is located in the historical center of Old Riga. The hotel was established in 1995 by the Latvian Welfare Fund, a charitable organization established in 1947 in the UK by exiled Latvians. The hotel was established after the renewal of independence and became a central meeting point for exiled Latvians to meet with long lost family and friends.

Profits from the hotel was donated to Vitols Fund that helps with scholarships to hard-working, talented people from low income families to study at the universities of Latvia.