Eastern European Markets
October 25, 2006

Reval Hotels expands into economy class hotel segment

The largest Baltic hotel chain Reval Hotels is expanding into economy class hotel segment by acquiring Baltpark hotel chain in Lithuania. Reval Hotels today signed a take-over contract for two Baltpark hotels located in Vilnius and Klaip_da. The deal increases Reval Hotels’ portfolio in Lithuania to four hotels. The value of the deal is confidential. Baltpark hotels will start operation as Reval Inn from January 2007.

“We are both proud and pleased to be able to include Baltpark in the Reval family, we have looked at their concept for some time and have been impressed with the performance and consistent quality,” said Mr. Karl Otto Skogland, the CEO of Reval Hotels.

In the future Reval Hotels will focus on both premium and economy segments of the market. Its traditional first class full service hotels with banquet and conference facilities are located in city centres. The new economy class hotels will typically be located along highways and in urban areas with good parking facilities. “Reval Inn will offer a comfortable room, a good breakfast, and fast and friendly service at value-for-money prices”, told Mr. Skogland.

Reval Inn aims at the fast growing economy segment in the Baltic countries, and Eastern Europe. The company plans to expand in Poland, Ukraine and Russia. “Still, before entering the other markets, it is necessary to become strong at our home market in the Baltics,” said Mr. Skogland. He pointed out that with two Baltpark hotels, and new hotels in Kaunas and Riga, Reval Hotels will build a solid foundation to support the expansion plans to the new markets.

By 2008 Reval Hotels expects to have 12 properties in the Baltic countries branded as Reval Hotels or Reval Inn, with a total of 1200 employees and a turnover of 70 million Euros. By 2010 Reval Hotels plans to be established in Warsaw, Kiev, St. Petersburg and Moscow.

Reval Hotels is a leading hotel chain in the Baltics, which operates seven hotels: four hotels in Tallinn, two in Riga and one in Vilnius. Reval Hotels is owned by Norwegian real estate investment company Linstow AS, owned by Anders Wilhemsen Group, major shareholder of world’s second largest cruise shipping company Royal Caribbean Cruise Lines. The annual turnover of Reval Hotels was 47 million Euros in 2005.

For further information
Karl Otto Skogland, Reval Hotels Chief Executive Officer
mob. no.: +34679437707
Juha Mahonen, General Manager Reval Hotel Lietuva
mob. no.: +37065564300

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