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ERR News - Two Estonian-owned companies have bought the Palace Hotel, a landmark institution on one corner of Tallinn's Freedom Square, from Sweden's Scandic Hotels. EfTEN Capital's real estate fund and Esraven AS each now own 50 percent of a new company set up to own and manage the hotel, EfTEN Capital said in a press release today. EfTEN Capital is owned by a group of Estonian businessmen that includes Hannes Tamjärv and the company's current CEO, Viljar Arakas, reported Postimees. Vello Kunman owns Esraven. “The Palace Hotel has become an icon due to its long history and unique location. A quarter of a century has passed since the last major renovation and the life cycle of the technical systems has come to an end. We plan to fully renovate the Palace and restore it to its former glory,” said Arakas. Built in 1937, the Palace has been at times one of the most exclusive hotels in Estonia. In the 1990s, it was among the elite, attracting such guests as Mick Jagger, the king and queen of Norway and Bryan Adams. By the following de-cade, however, it had become faded and was surpassed by newcomers. Scandic Hotels, who purchased the hotel in 1999, is leaving the Estonian market having sold its hotel in Pärnu at the end of 2012. The transaction is subject to approval by the Competition Authority. The value of the transaction is confidential.

 

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