Will businessman Alija Budnjo become the owner of Hotel Holiday?

In the race to purchase Sarajevo's Hotel Holiday with its associated land is businessman Alija Budnjo, owner of the Hoteli Ilidža complex, who has already sent a letter of intent and will submit an official monetary offer by April 14, Budnjo confirmed for the Patria news agency.

In mid-February, Austria's HETA issued a public call for the sale of Hotel Holiday in Sarajevo. The hotel is being sold with its associated land (land and building together referred to as the "subject of sale") designated as: cadastral parcels number 159, 158, 330, 360, 542, 543, 577, 544, on which a mortgage was established as security for HETA's claims.

Although the estimated value of the property is slightly over 40 million KM, due to debts and claims, the value has risen to 83 million KM. The minimum possible value must not be lower than one-third of the estimated value, so the lowest bid would be around 28 million KM.

Budnjo said that bidders from Kuwait, Turkey, Saudi Arabia, Singapore, Croatia... are also interested in the purchase.

- We will send an offer, and if luck is on our side, we will succeed - says Budnjo.

We remind you, Austria's HETA is the largest creditor of this hotel, which is part of Hypo Alpe Adria Bank. The debt arose when the Austrian company Alpha Bau Management took a loan from Hypo Alpe Adria Bank and gave a mortgage on the hotel as a guarantee for loan repayment.

Since they did not repay the loan installments and withdrew from BiH, the bank, i.e., HETA, took over the hotel.

Hotel Holiday was closed in June 2015 and was the subject of an investigation by SIPA, the Cantonal Prosecutor's Office, and the FBiH Tax Administration due to tax evasion in the millions. Responsible persons of the company "Holiday Resort" d.o.o. Sarajevo were arrested on suspicion of committing the criminal offense of tax evasion, and the workers were laid off.

The hotel was then handed over to the bankruptcy trustee.

We remind you, Hotel Holiday Inn (now Holiday) was built ahead of the 14th Winter Olympic Games held in Sarajevo in February 1984, and with its appearance and striking yellow color, it is one of the symbols of Sarajevo.

Since the subject of sale does not include operational (hotel) business, the question arises whether its purpose will remain the same once it is sold.