According to the agreement Tallink will start to operate the hotel from January 2009. The monthly rental payment will be EUR 62,500 (EEK 980,000).
The agreement and start of operations will be subject to the approval from the Competition Authority.
The Express Hotel is located just next to the Tallink Spa & Conference Hotel giving therefore good possibilities for synergies between the two hotels.
Express Hotel will be the fourth hotel in the Tallink Hotels chain. The total amount of hotel rooms offered by Tallink will exceed one thousand.
The transaction will not have a significant effect to the consolidated accounts of AS Tallink Grupp.
This is a related party transaction according to the Stock Exchange rules. OÜ Hansa Hotell is owned 50 pct by AS Infortar which is the main shareholder of Tallink Grupp and 50 pct by E.L.L. Kinnisvara which is not a related party.