Baltic Hotels Summary Of Project Information (SPI)       Project Name:    Estonia: Baltic Hotels                Region:    Central and Southern Europe      Sector:   Project No:009419   Projected Board Date:May 20, 1999   Company Name:AS Schlössle Hotel Group   Technical Partner and/or Major Shareholders    	Ober-Haus Real Estate Ltd.(60%), Industrifinans Eiendom Baltikum ASA (40%)    Project Cost Including proposed IFC investment    	Total project cost is estimated at US$15.5 million with IFC investment of up to US$5.5 million, including senior loan and quasi-equity.     Location of project and Description of site    	Hotels will be located in historic buildings in the prime Old Town locations of Tallinn, Estonia and Riga, Latvia. The first hotel in Tallinn, The Park Consul Schlossle Hotel, is located in the 15th century merchant''s house which has been restored to its former elegance. After implementing the proposed project, the Company will consist of 3 hotels: two in Tallinn, Estonia, and one in Riga, Latvia, with a total of 106 rooms.     Description of Company and Purpose of Project    	The project will support development of a regional hotel group which will own and operate small 4-5 star "town-house" hotels in old properties restored with an emphasis on cultural heritage and historic preservation. Hotels will be managed by Consul Hotels International Ltd., an experienced hotel management company.          IFC will play a key role in this project by providing a long term loan and quasi-equity financing, which are currently unavailable in markets such as Latvia and Estonia. The project will contribute to preservation of the Old Towns of Tallinn and Riga. This investment will support IFC''s tourism strategy by helping to create infrastructure for business development and private investment in the Baltic region and will spread benefits of economic development throughout the area.    Environmental Category and Issues    	This is a category B project according to IFC''s environmental and social review procedure.   Environmental and social issues associated with this project include: implementation of an environmental management program, project design and historical preservation, liquid effluent disposal, waste disposal, use of CFC''s in air conditioning and refrigeration equipment, fire protection and life safety, and employee training, health and safety programs.  The Company has presented plans to address these issues and demonstrated that the proposed project will comply with applicable World Bank requirements. The Company has commissioned an audit independent fire protection consultants to ensure the compliance of hotel properties with the World Bank fire protection and safety standards.     	    The  is  from the InfoShop.       Host country location of environmental documents    Tallinn, Estonia: World Bank Office and AS Schlossle Hotel Group corporate office   Riga, Latvia: World Bank Office      Date SPI sent to InfoShop: April 13, 1999   This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).