Trans World Corporation (OTCQB:TWOC), a premier owner and operator of casinos and a hotel in Europe, today announced that, on September 11, 2014, it acquired Hotel Columbus, a modern, four-star 117-room business hotel property, located in the suburb of Seligenstadt, Germany, 25 minutes from both downtown Frankfurt and Frankfurt international airport.
Mr. Rami Ramadan, Chief Executive Officer of TWC commented, “We feel that the acquisition of the Hotel Columbus fits well into our portfolio, which already includes a similar four-star category hotel, the Hotel Savannah, located in Hate, Czech Republic. Hotel Columbus is strategically located approximately 23 kilometers outside of Frankfurt, the largest financial centre in continental Europe. This hotel also has significant opportunity for additional growth, and we plan to employ an aggressive sales and marketing strategy. The property’s convenient location near a major highway and its ample meeting space are attractive selling points to regional businesses. We are very pleased to have acquired this hotel at a favorable valuation, with no dilution to our current shareholders. Our Board of Directors and management team are committed toward the growth of the Company to drive shareholder value.”
Summary of Transaction
Hotel Columbus was acquired for approximately $8.0 million, inclusive of taxes and closing costs, with approximately $3.3 million of equity from TWC’s available cash and approximately $4.7 million, of local bank financing. The 15-year amortized loan carries a favorable rate of 3.1% per annum, fixed for ten years, after which the rate will be market-based.
Hotel Columbus Operating Highlights
- Profitable, newly-renovated, four?star business hotel, strategically located approximately equidistant from Frankfurt city center and the Frankfurt international airport.
- Five meeting rooms equipped with the latest conference technology, a spacious restaurant and separate breakfast room, each with its own kitchen, two full-service bars, a 32-space parking garage and a 27-space surface parking lot.
- Frankfurt is home to the European Central Bank, Deutsche Bundesbank, Frankfurt Stock Exchange and several other large commercial banks, and ranks amongst the world's leading financial centre. With a population of 687,775, Frankfurt is Germany’s fifth largest city.
Logos, product and company names mentioned are the property of their respective owners.