The Riga City Council on June 17 decided to privatize municipal shares in Radisson SAS Daugava, one of the largest hotels in the Latvian capital.
BDO Invest Riga auditors have assessed total value of the hotel as 6.9 million lats (10.3 million euros), and the value of municipal holdings in Radisson SAS Daugava was determined as 2.5 million lats.
The City Council must first draft privatization regulations specifying the manner and price for the sell-off.
The municipality-owned shares - 45 percent - are currently held by the municipal company Rigas Viesnicas (Riga Hotels), while 55 percent belongs to PBR Hotel Ltd.
Share ownership was originally determined by the fact that PBR Hotel owns the building and that the land belongs to the city of Riga.
The privatization proposal was made by PBR Hotel Ltd.
Polarbek Daugava board chairman and PBR Hotel representative in Latvia, Janis Lancers, said earlier that negotiations on buying the hotel from the municipality had been continuing for two years