Latvia, Real Estate, Tourism

According to Platace, the starting price set for the "Hotel de Rome" auction – LVL 6.8 million – was satisfactory for the company, and so it would use its right of first refusal. "The final word will be had by the owner of Reho – the German company Riga Hotel GmbH'", added Platace.

As reported, on June 21 the members of Riga City Council's Property Committee approved a privatization bill for "Hotel de Rome", which states that the hotel will be sold at auction, and the starting price will be set at LVL 6.8 million, writes LETA.

Compared to the "wealthy years", the starting price for "Hotel de Rome" has reduced more than threefold.

Olafs Pulks, deputy head of the New Era group at the Riga City Council, said that the bill must be returned to the Privatization Commission for a repeated review.

"If the hotel's value had not been set that high back then, the Riga City Council would have never suggested privatization of these properties," said Pulks, noting that now the starting price has been slashed and the hotel's managers have been given the right of first refusal.

The first privatization bill for "Hotel de Rome" was approved by the Riga City Council in the spring of 2008, when the starting price for the property was set at LVL 21.09 million.