PIA buys Scribe Hotel
PIA has taken over the entire shares of Scribe Hotel, Paris, running under the management of PIA Investment Limited (PIAIL) - a subsidiary of PIA.
According to the deal, the national flag carrier has paid $27 million to take over the sole ownership of the four-star deluxe hotel, located in the most prime location of Paris, Managing Director PIAIL, A R Khan told The News.
The PIAIL has arranged $18 million from a consortium of banks while it paid $9 million from its own resources. Instalments of the loan would also be paid by the PIAIL, he said. The PIA is a partner of 50 per cent in PIAIL with the Royal family of Saudi Arabia.
After the go ahead signal of PIA Chairman Lt General (retd) Hamid Nawaz, the PIAIL inked the deal on March 20 in Paris. The airline took over the control of Roosevelt Hotel, New York, in 1999.There are four hotels - one each in New York, Paris, Dubai and Riyadh -running under the management of PIAIL. Now, PIA is the sole owner of Roosevelt Hotel, New York, and Scribe Hotel, Paris.
Having 237 rooms, Scribe Hotel is the only four-star hotel located in the Opera area, Khan said. The PIAIL procured the hotel on rent in 1980. Khan said PIA had planned to take over ownership of the hotel in 1996, but at that time it missed the opportunity. The present
PIA management took keen interest in the matter that made it possible to take over all the shares of the hotel, whose market value was about 1 billion French Francs or $140 million, he said.
Khan said that financial position of the PIAIL was sound. He said the Roosevelt Hotel was also doing fine business. During the first quarter of the current calendar year, the hotel did a business of $12.5 million, $2.5 million over the target fixed by the management. The room occupancy was 71 per cent as compared to the initial estimates of 53 per cent, he said.