Amtel Group to launch new hotel brand in Moscow

Hotel group Amtel has set up a joint venture with City Developments Ltd (CDL), a major international hotel developer, to introduce a new hotel brand to Russia, named Copthorne, under CDL’s Millenium & Copthorne Hotels brand. Amtel Group already has diverse businesses within the Commonwealth of Independent States.

Amtel and CDL are investing US$125 mln in Soft Proekt, which owns the Iris Congress Hotel and an apartment building in Moscow. CDL has a 50% stake, with Golden Orchards Hotels, an Amtel business, holding the remaining 50%. The Iris Congress will be operated and managed by CDL’s London subsidiary, Millenium & Copthorne Hotels. Other plans involve a conference centre and business facility to be constructed next to the hotel.

UK law firm Squire Sanders advised Amtel Group on the deal. 'There is a huge appetite for hotel space in Moscow as more and more business and other travelers make extended visits to investigate opportunities created by the strong economy,' said Squire Sanders partner David Wack. 'We look forward to assisting Amtel Properties in the next stage of their relationship with CDL.'

Squire Sanders has recently advised on a number of high-profile real estate investments and acquisitions in Moscow. In June, the team advised Developers Diversified Realty Corporation (DDR), the largest shopping centre real estate investment trust (REIT) in the US, as it entered into a US$300 mln joint venture with ECE Projektmanagement International, a German real estate development company which forms part of the Otto Group. Together, DDR and ECE will pursue retail development in Russia and Ukraine. In August, the firm advised on a merger that created a market-dominating chain of fitness clubs, making the merged company, Russian Fitness Group, the largest fitness group in Russia.