VILNIUS - Lithuania's AAA group aims to invest 110 million litas (31.8 million euros) into a new hotel that will be located in the heart of Vilnius together with Kempinski, the prestigious international hotel chain.
The group has already been authorized to begin the design phase of the project.
The new hotel is expected to open in the first half of 2007.
"Kempinski's drive for expansion in the Baltic countries is prompted by healthy economic development in this region and niches in the top-level service market," Marius Jakulis Jasonas, AAA chairman, said.
The Vilnius hotel will be the first hotel in the Kempinski's Baltic chain. Two more are planned to open in Latvia in 2007.
AAA Kempinski Hotel Vilnius will take up the building at the intersection of Universiteto and Stuokos-Guceviciaus streets. Previously, the building accommodated a hotel and, at one time, the city's central telegraph office.
The hotel with 110 rooms is projected to render five-star service and will employ a workforce of about 100. The building will also accommodate a conference center, a health center, a restaurant and a banquet hall.
AAA, a group established by Jasonas, who is a lawyer, covers numerous companies operating the Radisson SAS Astorija hotel, guest houses Mano Liza, the travel agency AAA Wrislit, the lawyers' office AAA Baltic Service Company and the parent company AAA, which is engaged in investment activities.
The companies employ a combined workforce of about 200.