Three skyscrapers are expected to be built next to the former Sheraton hotel, bordering on the Artificial Lake Park. Sources told Exit that a few low buildings used by the MAK-Albania company, located in the area next to the hotel building, will be torn down to make space for the skyscrapers that will be built by the new owner, Kastrati shpk. It is not clear yet if these constructions will infringe on the nearby public land.
As Top Channel reported a few days ago, Kastrati shpk paid €30 million for the former Sheraton hotel, €12 million of which went towards paying MAK-Albania’s loans.
The hotel building was owned by MAK-Albania, while Sheraton managed the hotel under its brand. MAK-Albania had decided to sell the building for some time now, as part of them concluding their activities in Albania. Sheraton, too, had decided to leave after the ownership change.
For several years, Sheraton Hotel was operating at a loss, making up for it by taking out loans. This fact makes Kastrati’s decision to buy the building in direct cash payments seemingly controversial, considering that a quick return on investment would be difficult, while the hotel may need further investment to rejuvenate.
But it seems, following the purchase of the hotel, that Kastrati intends to build skyscrapers in one of the most coveted spots in town. Its proximity to the Artificial Lake Park and the National Arena Stadium is expected to raise the area’s property value. The construction of skyscrapers and maximum exploitation of the area may be part of the reason that Kastrati agreed to pay more than the property’s actual value.
Kastrati shpk, whose main ventures consist in fuel and automotive commerce, seems to be expanding in the construction and hotel sectors, as well. The Turdiu Building, as well as the 134-meter Downtown Tirana on Rruga e Elbasanit are both Kastrati investments.
Both the Rama government and the Tirana municipality have moved to make tourism and strategic investments tax-exempt, which has been criticized by the IMF. These tax breaks may reach millions of euros for large construction projects. It is still not clear whether Kastrati shpk will receive such tax incentives.
