Landmark investment

WSE-listed Europejski Fundusz Hipoteczny (EFH) has unveiled details of a four-star hotel to be built next to the historic castle in the city of Malbork. The company expects to launch construction work on the hotel in October.

The zł.120-million investment will deliver 175 hotel rooms, conference facilities as well as two restaurants and retail space. The hotel will be located on a 4,640-sqm plot purchased from the city authorities for almost zł.9.5 million. Its delivery is scheduled for June 2010. The investor expects that the hotel will draw most of its business from tourism, but also sees the relative scarcity of hotels in the area as a potential niche for development.

"There are definitely too few hotel developments in Malbork. The existing hotels are not able to satisfy tourism-driven demand for accommodation. … This is why we see the potential for hotel development in this historic place," said Marcin Podobas, the deputy president of Europejski Fundusz Hipoteczny.

Founded in 1274, Malbork's Castle of the Teutonic Order played a major role in Polish medieval history and nowadays remains the main tourist attraction in the region. The architectural design of the hotel will correspond to the castle's architecture, and the main material used in construction will be traditional red brick. Many of the hotel's architectural elements will accentuate its congruence with the castle's Gothic style.

Neither a general contractor nor an operator for the hotel have been announced.

EFH invests in the sector of high-standard hotel developments and tourism real estate. It is currently developing several hotel projects whose total value exceeds zł.300 million. EFH ended 2007 with a net profit of approximately zł.12 million.