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Historic Belgrade Hotel Union Sold for €6.2 Million

In a significant real estate transaction, the historic Hotel Union in Belgrade has been sold for 727 million dinars (€6.2 million) at a public auction

The starting price for the hotel was set at 297 million dinars (€2.5 million), attracting ten bidders. The successful bidder, Logga Plus d.o.o., a Belgrade-based company led by director and founder Vladan Miketić, ultimately secured the property.

Logga Plus, primarily engaged in trade and services, is venturing into the hospitality industry for the first time with this acquisition. Along with the nearly 3,000 square meter hotel building, Miketić has acquired a collection of artwork, equipment, and supplies. However, the purchase also includes substantial financial liabilities.

“The hotel’s operational obligations and other short-term liabilities are 58 times greater than its current assets,” explained Ilija Nešić, an analyst at BBA. “These obligations amount to 124.3 million dinars, while current assets stand at 2.1 million dinars, mostly tied to receivables. Significant adjustments in receivables, amounting to around two million dinars, indicate serious collection issues. Additionally, short-term liabilities represent 46% of the hotel’s fixed assets, valued at approximately 267.4 million dinars as of December 31, 2023.”

The National Bank of Serbia’s records reveal that Hotel Union’s account was blocked from July 26, 2021, until May 21 this year, a total of 1,030 days. Despite these challenges, the hotel’s rich history and prime location make it a valuable asset.

Founded in 2008, Logga Plus employs just one person and ended the previous year with a loss of 11.1 million dinars. This acquisition marks a bold move for the company, potentially signaling a new direction and ambition in the hospitality sector. As Miketić and his team take on the challenges of reviving Hotel Union, the Belgrade community and the broader hospitality industry will be watching closely.

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