14 - 20 September 2000

IHI's redevelopment of Grand Hotel Royal in Budapest underway

Works on site for the US$60m reconstruction project on the Corinthia Grand Hotel Royal in Budapest, owned by Maltese public company IHI plc, is expected to start soon.

Last week, IHI completed the acquisition of an architecturally unique underground spa adjacent to the Grand Hotel Royal. The spa, built out of a series of caverns in the early 20th century, will now

be incorporated into the overall redevelopment of the hotel. Dr Zoltan Szabo, Mayor of the 7th District in the City of Budapest, the area hosting the Grand Hotel Royal, was in Malta to sign the Sale and Purchase Agreement on the spa with IHI, and to review the programme for the redevelopment of the Grand Hotel Royal.

Alfred Pisani, Chairman of IHI, said the company was pushing ahead with its international tendering programme, following which structural works on site will commence by the end of 2000, with a completion date targeted for mid 2002.

"The project is an ambitious undertaking, but we are confident that we will succeed to restore the Grand Hotel Royal to its former glory as the premier address in Budapest," Mr Pisani told the mayor.

Dr Szabo expressed his strong appreciation that Malta's foremost public company in the hotel sector has chosen Budapest, and the Grand Hotel Royal in particular, to host its first major project overseas.

"The Grand Hotel Royal, with its unique history and architecture, and the refurbishment project, which is aimed at positioning the hotel among the leading properties in Europe, will ensure that this hotel will be the flagship for IHI plc's continued growth internationally" Dr Szabo said.

In re-developing the hotel, IHI plc has commissioned the renowned United Kingdom architectural firm - GA Design International - to produce an interior decor scheme that will reflect a harmonious balance between innovative modernism and the building's original opulence and splendour. The façade, as well as lavishly decorated parts of the building such as the ballroom and its foyers, will therefore be retained and restored to their original glory, blending in with the facilities and services expected of a hotel of this standing.

When completed, the hotel will boast of 440 rooms, several theme restaurants, a shopping arcade, a major convention and exhibition centre, a health spa, extensive car parking facilities, as well as a suite of apartments and commercial offices.