September 29th, 2008

Budapest’s city-owned spa operator to sell assets to fund developments

Local council-owned Budapest Spa plans to sell off some assets to raise HUF 4.5bn-5.0bn to modernise its baths, business daily Vilaggazdasag reported on Friday.

Budapest Spa wants to sell two of its baths, the Erzsebet and Ujpest baths, CEO Tibor Ferenci told the paper. Both spas have been closed for years, he added.

The company also wants to sell 2-2.5 hectares of the 8.5-hectare area at the Dagaly baths to developers who could build a spa hotel at the site.

The sales are expected to raise HUF 4.5-5bn, which would be enough to cover the main developments the company plans.

Budapest Spa will use grant money and local council subsidies to continue the renovation of the capital’s listed baths. The first phase of the renovation of the Szechenyi baths will cost HUF 1bn, Mr Ferenci said. Budapest Spa is working with Danubius Hotels on the renovation of the Gellert baths, he added. Renovation of the two baths as well as of the historic Lukacs baths will be completed in a few months.

Over the next several years, Budapest Spa plans to spend HUF 5bn-10bn to modernise its baths.

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