Rus News Journal

Moscow will get rid from Ukraine

the Mayor of Moscow Yury Luzhkov has signed the governmental order about sale from auction of 100 % of actions of hotel Ukraine . Competition on selection of the independent appraiser for definition of market cost of a share holding is entrusted for organising to department of property of Moscow. The department has preliminary estimated hotel cost in $157 million It is supposed that it will be the starting sum of auction. Opinions of participants of the market concerning investment appeal of the given object were divided.
100 % of actions of Open Society Hotel ` Ukraine ` belongs to department of property of Moscow. The area of premises makes 73,3 thousand in sq. m. Ukraine along with hotels Space and Russia works in a segment of group foreign tourism. Though it has the status four stars capital repairs there were not spent almost 50 years. Net profit Ukraine In 2004 has made 48 million rbl., from them 24 million rbl. it has been directed on dividends.

as have declared in department of property of Moscow, the city searches for a long time for the investor who would be engaged in hotel reconstruction. In the beginning of this year the city was ready to sell a hotel share holding for $70 million and to become the co-owner of hotel together with any private investor. However, as the assistant to general director Hotel Consulting and Development Group (HCDG) Marina Smirnova, " marks; the investors potentially interested in acquisition of object, lost enthusiasm, having heard about available obremenenie in the form of an apartment house (the residential building next to hotel inseparably linked with it thermal and other communications. - ) .

In department have specified that Ukraine is an architecture monument and consequently its pulling down reconstruction is excluded, possible only. In company Knight Frank estimate reconstruction cost in $1,5 thousand for 1 sq. m. Thus, cumulative cost of hotel and expenses for its reconstruction will manage to the investor more than in $250 million According to Swiss Realty Group, at professional management Ukraine will bring to the investor a maximum of $20 million profit in a year. Thus, the project recoupment will make more than twelve years. Office and shopping centres in Moscow pay off for three - five years, hotel projects - for six - eight. Nevertheless the director of department of consulting Knight Frank Konstantin Romanov is assured: ` Ukraine ` - one of most investitsionno attractive objects, despite necessity of deep reconstruction . Mister Romanov explains appeal affinity of hotel to the under construction international centre Moscow - City and its site on a joint of several transport arteries.

the Director for development Swiss Realty Group Ilya Shershnev, on the contrary, considers that Ukraine can interest only very large investor who possesses ` long ` money and does not wait for fast profit . Such investors in Moscow are. The general director art - Bilding Andrey Anokhin considers that hotel purchase Ukraine could interest Inteko and the Base element . ` Inteko ` declared recently plans to invest in hotel business. It is possible to explain such decision of company management the future resignation of the mayor. Luzhkov will leave from a post in 2007, and the reinvestment cycle in hotel business is much longer, - it explains. - as to ` the Base element `, its branch ` ` invests Russian hotels in regional hotel projects. It is logical to assume that ` Bazel ` will develop this direction in the business and in capital . The potential buyer Ukraine businessman Shalva Chigirinsky, whose " is also; ST Development struggled for the right to build new hotel on a place Russia . Besides, interest to Russia showed Austrian Bau Holding Strabag AG. From foreign investors it is possible to name Africa - Israel the Lion of Levaeva to which in Israel posesses a large network of hotels.

the interrogated potential buyers Ukraine comments have refused.