"Grand" is not for sale – some outlets and suites in "Brvenik" to be offered for sale

- We are not selling and reselling hotels on Kopaonik mountain – Jaroslav Stupavski, who is in charge of restructuring of the companies procured by “MK Group”, including hotels “Grand” and “Sunčani vrhovi”, told “Politika”.

On the occasion of the rumors that "MK group" intended to sell hotels, Stupavski says that construction-architectural works on improvement of the level of services in hotel “Grand” and suite complex "Konaci – Sunčani vrhovi" are in progress. Between 5 and 8m EUR will be invested in refurbishment of these hotels in 2009, while the investments within the next two years will reach the amount of 12m EUR.

– With the consent from the Privatization Agency, some outlets and suites in "Brvenik" will be offered for sale, in accordance with the signed sales contract, while the obtained funds will be reinvested in the hotel and accommodation quarters – says Stupavski, who is also an assistant to the President of the company.

Prior to the beginning of winter season (which is expected to start on November 15th), refurbishment of 80 rooms and suites in hotel "Grand", 20 of which have already been finished, will be completed. The guests in the next season will have at their disposal completely reorganized reception desk and restaurant in the hotel, while famous "Aperitif bar", which is at the same level as the hotel’s reception desk, will get the new, modern looks, adapted to fit mountain surroundings. "Havana bar" will also have the new looks in the new season, as well as pizza place "Garden". The works on complete reorganization of existing heating and electric installations and ventilation system are underway.

Innovation in the offer for the next season will be Business center for business clients of the hotel, as well as reorganized playhouse for kids, adapted to satisfy the needs of kids and their parents. Construction of the most modern wellness and spa center in the region, which should occupy the space of 2,200 square meters, will commence soon, but the end of the works is expected in 2010 because of complicated interior, technical and exterior works.

The intention of the management is to have 50 suites in "Zvečan" and "Ras" completely refurbished, and they should grow into a hotel with four stars within the next two years, while accommodation "Brvenik" will be completely reorganized.

Miodrag Kostić, the owner of "MK group", bought aforementioned hotels in 2008 on the repeated tender because there were no interested bidders on the first one, so that the price was lowered to 23m EUR in six annual installments. Actually, he had to pay 30% of the price immediately, while the rest was to be paid in five equal annual installments.

According to the contract, the buyer’s obligation is to raise hotel "Grand" to the level of a four-star hotel within the next two years, according to international standardization. The same category is requested for "Sunčani vrhovi", but the deadline is three years.

Kostić must stay in hotel business for minimum ten years, and if he wants to sell the hotels in that period, he must ask the Privatization Agency for consent. The Agency must also give consent if the new owner wants to sell more than 15% of the property within the next five years. If more than 15% of the value of the property is sold, obtained funds must be reinvested in hotels and that money can not be used for remaining installments to be paid.

(Note: complete text is taken over from newspaper "Politika" of July 21st, 2009)