Rainbow seals 9 million EUR for its Greece expansion

The Foreign Expansion Fund (Fundusz Ekspansji Zagranicznej) has agreed to invest 9 million euro in Greek company White Olive Hotels A.E., owned by Polish company Rainbow, for its further development. Rainbow plans to further increase the capitalization up to 12,5 million EUR.

The Foreign Expansion Fund (FEZ) is a part of Polish Development Fund Group.

The received funds will be used by White Olive for its further development, including the acquisition and renovation of new hotel facilities.
Currently, the WOH owns three hotels located on the Greek island of Zakynthos, two already operating as 4 * facilities and the 5 *, currently under construction. The inauguration of this 5* hotel will take place by the beginning of July this year. All hotels operate in All-Inclusive formula, in 4* hotels there are currently 270 rooms in total, while in the 5 * hotel there will be 200 rooms. WOH facilities on Zakynthos have great location, high standard of rooms and carefully selected restaurant’s offer. The 5 * hotel besides of the All-Inclusive restaurant will also have an additional one, which will serve the guests “a ‘la carte”.

Thanks to the funds obtained by signing the agreement with FEZ and as a part of first tranche of 9 million EUR, White Olive A.E. wants to increase its hotels portfolio by two new facilities, one which will fully purchased, and the second one via a long-term lease. The newly acquired hotels will be of similar size, between 120 to 150 rooms each.

There are plans to invest the next 7 million EUR, from this amount half will be invested by the Fund. This second round of capitalization will allow to expand the hotel chain by two more facilities, so at the end of 2020 the company would manage a network of 7 hotels with a total of approximately 1,100 rooms and almost 3,000 beds.

WOH plans to continue its development in Greece, which is thanks to its location, unique climate, history and gastronomic offer, one of the favourite holiday destinations for tourists from all over the world. The new facilities will be located on the Aegean Islands, i.e. Crete, Rhodes and Kos, as their exceptionally favourable climatic conditions allow the extension of the operating season. Investing in the development of White Olive Hotels chain is a part of Rainbow’s strategy for coming years. Having its own hotel properties not only opens wider possibilities to create and manage the product, but also allows the company to generate better and more stable financial result.