The shareholders of Aro Palace will decide on September 21 on contracting a €13.5 million loan, intended for the continuation of works to transform the former Capitol Hotel in downtown Brașov into the Mercure Hotel, according to BizBrașov.ro.
To secure the financing, shareholders are called upon to approve mortgaging the property, as well as pledging all present and future receivables resulting from both the hotel operations of the future Mercure Hotel and the leasing of spaces within it, alongside other collateral. The total investment value has climbed to €18 million amid rising construction material costs, and the opening is scheduled for next year. The partnership between Aro Palace and Accor was announced in 2023, targeting affiliation with the international brand Mercure Brașov Center, a network present in over 60 countries with more than 943 properties. The contracts for the works were signed in September 2023, with the initial completion deadline set for September 2025.
Frequently Asked Questions
What is the purpose of the €13.5 million loan?
The loan will finance the ongoing transformation of the former Capitol Hotel in Brașov into the Mercure Hotel.
What is the total investment in the project?
The total investment has risen to €18 million due to increased construction material costs.
When is the Mercure Hotel expected to open?
The opening of Mercure Brașov Center is scheduled for next year, following agreements signed with Accor in 2023.