Russia's Okhotny Ryad Deluxe has acquired the Hotel Metropol, a Russian architectural landmark, at an auction for RUB 8.87 bn (EUR 220 mln). The buyer is a subsidiary of the current operator of the five-star hotel, which was divested by the municipality of Moscow as part of its privatisation programme.
Russia's Okhotny Ryad Deluxe has acquired the Hotel Metropol, a Russian architectural landmark, at an auction for RUB 8.87 bn (EUR 220 mln). The buyer is a subsidiary of the current operator of the five-star hotel, which was divested by the municipality of Moscow as part of its privatisation programme.
The city has been privatising non-core real estate and other property assets to raise funds and make those assets more efficient. It also recently announced its intention to sell its share in the Gostiny Dvor Exhibition Center and Vnukovo International Airport.
Marina Usenko, head of Jones Lang LaSalle Hotels, Russia & CIS, said Hotel Metropol was the last of the city’s luxury hotels to be privatised, in addition to the Ritz Carlton, Ararat Park Hyatt, Baltschug Kempinski, Marriott Royal Aurora, Lotte, Radisson Royal Ukraine, Savoy and the National Luxury Collection.
The city government also plans to sell its share in a hotel company that owns a number of economy and mid-market hotels, she added.
'The earning power of hotel assets in Russia's capital city is actually comparable to similar assets in London, Milan or Venice,' said Usenko. 'Hotel Metropol may offer a reasonable return to the new owners provided the floor space is used more efficiently and the renovation plans return it to a luxury hotel.'
