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The Moscow government sold the famous Stalin high-rise building for the record sum of 7781 billion roubles (about $273 Million) which is 80% higher than the original price of the lot.
From seven contenders the city property was sold to JSC ‘Biscuit’, representing according to ‘Kommersant’ newspaper, the interests of the entrepreneur Zakhar Iliev, general director of the shopping center ‘Moskva’, a co-owner of Cherkizov market and the furtinure center ‘Grand’ in Khimki.
What is more, according to brief comments, given by Natalia Byikova, press-secretary of the Department of Property of Moscow, to a BANKO correspondent, the new owner of the hotel has experience of building in the Western region of the capital; ‘Vedomosti’ newspaper says the ‘Biscuit’ owns three restaurants on Arbat. According to the auctions’ witnesses, the representative of ‘Biscuit’ refused to make any statement about the activity of the company or the future of the ‘Ukraine’ hotel to the press.
Nevertheless, it is known that the new owner intends to reconstruct the building, but the hotel will not close – it is one of the conditions of the Moscow government given before the auction. The building is planned to repair in stages, According to existing assumptions, ‘Ukraine’ will position itself as 4* hotel. ‘It looks like it will be a unique building, the architecture will remain but the interior will be updated. Therefore, prices will grow to justify the expenses. However with the new ‘Ukraine’ the flow of tourists to Moscow will grow’, foresees Leonid Lemyish, head of the department of building projects of the Department of hotel development of ‘Intourist’.
According to non-official data, the minimum cost of a room in a new hotel with a congress-hotel and express elevators will be no less than 300 Euros a day – almost as much as a night in a Paris hotel of the same standard (deluxe). However Moscow compared to Paris is only claiming to be a tourist city and is unlikely to conquer the status, believe some experts. ‘Ukraine’ will be available, like the majority of Moscow hotels, only for well-off holiday-makers. Even in Paris the number of 3* hotels is 80% from the total. In the capital it is only 20%. The rest are – 4* and 5*. This only repells tourists, works against them. And it will only be like that – this is the center of business, not tourism, the profit of which is maximally 3%.’ Said Sergey Romashkin, general director of ‘Dolphin’.
