by editor’s office, ch, tophotel

The financial difficulties are getting worse: Grand Hotel Heiligendamm has applied for an assurance of four million euros with the German Federal State of Mecklenburg-Western Pomerania. The assurance has been granted and, according to reports in the media, is supposed to allow the leading hotel suffering from the financial crisis to maintain operations. The hotel management has yet to release comments.

A spokesperson for the Schwerin Ministry of Finance confirmed in an interview with trade magazine Top hotel that the assurance will be used to secure a loan. More information was not released. The assurance statement justified the deal explaining that Grand Hotel Heiligendamm is a matter of special interest for the Federal State.

Until mid-2008, Kempinski had anticipated profits of 1.5 million euros. Instead, media reports point to losses of two million euros.

The extended article can be found in German at www.tophotel.de.