The Croatian government on Thursday decided to sell the Kumrovec-based Hotel Zagorje, which used to be a political school in the former Yugoslavia, to Zhongya Nekretnine company that has been the sole bidder, at the price of HRK 14.09 million (EUR 1.9 million).

Chinese businesswoman Yu Jiang is a co-owner of the Zhongya Nekretnine company and during her recent visit to the compounds in nthat northwestern Croatian region she said that according to an initial estimate, around EUR 20 million would be invested in the entire project.

Yu has visited Kumrovec a number of times and said she wants to convert Hotel Zagorje into a real hotel as well as create a memorial park honouring Josip Broz Tito, the leader of the communist Yugoslavia who was born in Kumrovec.

The premises of state-owned Hotel Zagorje, which is in a dilapidated condition, covers 27,000 square metres.

The new owner is expected to pay the purchase price within 30 days upon the conclusion of the sales contract.

(EUR 1 = HRK 7.4)