News On Turkey

U.S. Agency Approves $3 Million Loan for Hotel Project in Turkey

22 March 2005

OPIC funding "underrepresented niche" on Asian side of Istanbul

The U.S. Overseas Private Investment Corporation (OPIC) has pledged a $3 million loan to convert an historic 19th century Ottoman building in Istanbul, Turkey,to a small hotel, in support of U.S. private-sector investment in that country, according to a March 18 OPIC press release.

The hotel will be on the Asian side of Istanbul where there is significant demand for hotel accommodation. 

“Istanbul is one of the great cultural attractions of the world, its rich history offering significant investment potential for the tourism industry,” said OPIC acting President and Chief Executive Officer Ross Connelly. "OPIC is pleased to support a U.S. small business that has identified an underrepresented niche in the Istanbul hotel market, and in the process will support the development of the Turkish economy."

Following is the OPIC press release: 

U.S. SMALL BUSINESS USES OPIC LOAN TO BUILD HOTEL IN TURKEY

Oversea Private Investment Corporation (OPIC)
http://www.opic.gov/
Friday, March 18, 2005
 

WASHINGTON, D.C. – A U.S. small business will use a loan from the Overseas Private Investment Corporation (OPIC) to convert an historic 19th century building in Istanbul to a small hotel, OPIC Acting President and CEO Ross Connelly announced today.

OPIC will provide a $3 million loan to M&N Butler Mimarlar Ltd, an architecture and development firm comprised of a Turkish-American family, for the construction of a 14-suite hotel on the Asian side of the Bosphorus, in the township of Cengelkoy.  The property is part of a complex of 19th century Ottoman factory buildings that were initially used as warehouses and later as factories.

The hotel will cater to tourist and business interests, mainly from North America, Europe and Turkey. Connelly noted that there is significant demand for hotel accommodation on the Asian side of Istanbul, which lacks international branded hotels. 

“Istanbul is one of the great cultural attractions of the world, its rich history offering significant investment potential for the tourism industry. OPIC is pleased to support a U.S. small business that has identified an underrepresented niche in the Istanbul hotel market, and in the process will support the development of the Turkish economy,” Connelly said.

OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy.

OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 33-year history, OPIC has supported $164 billion worth of investments that have helped developing countries to generate more than 732,000 host-country jobs and $13 billion in host-government revenues.