After several months of negotiations, an agreement was reached on Monday between listed hotel group Lampsa SA and Eurobank for the former to take over the operation of the King George Palace in Syntagma Square, central Athens, which is owned by the lender, for the next 20 years.
According to sources, Lampsa, the owner of the adjacent landmark Hotel Grande Bretagne, and Eurobank have signed a preliminary contract that provides for the lease of the hotel for an initial period of 10 years, with an option of two five-year extensions.
The deal further provides for the leaseholder to retain a preference right for the sale of the 91-room hotel unit, should the bank decide to sell.
Kathimerini understands that the fixed annual rental rate which Lampsa will pay amounts to about 700,000 euros. The bank will also reap additional benefits from the turnover of the King George and the combined turnover of both major hotels in Syntagma Square.
Lampsa is considering shutting down the King George Palace for two to three months to implement an investment program of modernization that is expected to cost at least 1 million euros.