BUSINESS: Hilton Cyprus to be sold by end of 2018

Nicosia’s only five-star hotel is up for grabs as its owner, the Cyprus Tourism Development Company, is seeking to sell it before the end of the year.

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The owners of Hilton Cyprus have assigned PwC with the task of conducting the sale.

Greece’s Marfin Investment Group which are the major shareholders in the hotel’s current ownership, have instructed PwC to seek a buyer for the 96.82% of Cyprus Tourism Development Company.

Reportedly, local hoteliers and international investment funds have shown interest in acquiring the hotel, as 10 investors have submitted non-binding offers. Meanwhile, potential buyers will be able to carry out financial checks plus due diligence and will have the opportunity to amend their financial proposals accordingly by 21 November.

It is considered likely that if the hotel is bought by a local hotelier, the hotel will not only be switching operators, but may also lose its signature brand name.

In the case the hotel ends up in the hands of foreign investors, it is expected that they will seek to renew the cooperation with Hilton Hotels and Resorts.

Hilton Cyprus is mainly a business hotel as its customers are primarily business professionals, and it is known for hosting large conferences on which its revenue is mostly based.

The hotel's 2017 revenues amounted to EUR 12 mln, continuing the upward trend of the past five years.

Profit before taxes, interest and depreciation amounted to EUR 3.5 mln in 2017 and this year it is estimated to be around EUR 3.8 mln.

The hotel has drastically reduced its debt, with estimates putting it at EUR 500,000 by the end of 2018.