ECONOMY

ETA set to lease seven tourism properties to private developers

Hellenic Tourism Properties (ETA) is poised to sign long-term leases for seven pieces of property that will be given to private operators to develop. The private operators were the highest bidders in tenders offered by ETA, which is leasing, or selling, property belonging to Greece’s National Tourism Organization (GNTO). ETA will get an immediate injection of 1.1 million euros as soon as the contracts are signed. The seven pieces of property are the Alimos beach close to Athens; the Batis beach and campsite near the northern town of Kavala; spas near the towns of Methana, in the Peloponnese, Loutraki, west of Athens and Platystomo, in central Greece; the Xenia Hotel in Serres, northern Greece; and the Diros cave, in the southern Peloponnese. The leasing agreements for the spas and Batis provide ETA with guaranteed income of 3 million euros over the next 10 years. The private operators have committed themselves to investing a total of 20 million euros. The Alimos beach will be leased to a consortium for a lump sum of 440,000 euros. Investments will total 1.5 million. The Methana spa will be leased for 40 years. ETA will receive 140,000 euros immediately plus 4 percent of turnover over the first decade, 4.5 percent over the second decade and 5 percent over the final 20 years. The company which will lease the spa will invest 3 million euros. ETA will lease the Platystomo spa to businessman Bill Stragalis, owner of the Montana resort hotel at Karpenisi, west of Platystomo. Stragalis will pay a lump sum of 115,000 euros, as well as 2.2 percent of turnover during the first decade and 3 percent in subsequent years. He has undertaken to invest 6 million euros. The «Loutraki Center of Spa Tourism and Thermalism,» which will lease the Loutraki spa, will pay 53,500 euros plus 3 percent of turnover for the duration of the lease. It will also invest 2.5 million euros. The consortium which leases the Batis beach and campsite will pay 80,000 euros plus 2 percent of turnover during the first five years and 2.5 percent thereafter. It will invest 1 million euros. In the cases of the Xenia Hotel and the Diros cave, ETA is still negotiating with the highest bidders. ETA expects to get at least 200,000 euros from leasing Diros, a major tourist attraction, and expects the consortium to invest 2 million euros. Regarding the Xenia Hotel, ETA expects, at a minimum, a payment of 120,000 euros and a 5 percent cut from turnover. It wants construction company ENVIT to invest 3 million euros in upgrading the facility.