Warimpex sells controlling stakes in two Russian hotels

Vienna and Warsaw-listed property investor Warimpex has divested its majority control of two airport hotels in Ekaterinburg, Russia's fourth largest city, to a private investor.

The Angelo and Liner hotels are located at the city's Koltsovo International Airport. The investment volume was not disclosed but Warimpex CEO Franz Jurkowitsch conceded that the sale of the 60% interests in the hotels took place against the background of the 'difficult market conditions in Russia'.

He said the transaction would nevertheless have a positive impact on Warimpex balance sheet and that the company remained active as a developer-investor in Russia. 'Despite our withdrawal from Ekaterinburg, Russia will remain one of our most important core markets, where we are making good progress in the development of Airportcity St Petersburg. The fully let out Zeppelin office tower was recently completed as part of the second construction phase.'

Hotels
The four-star angelo airport hotel was opened in 2009 and is connected directly to the passenger terminal of Ekaterinburg-Koltsovo International Airport, which is a hub between Europe and Asia, resulting in the 211-room hotel catering to a growing clientèle from Russia and international guests. The hotel also features a 1,344 m2 conference centre.

Liner Hotel with its 152 rooms has been in operation since 1986 and was converted into a three-star hotel according to international standards.

Warimpex is based in Vienna and is listed on the stock exchanges in Vienna and Warsaw (WXF). As one of the largest hotel investors in Central and Eastern Europe, Warimpex currently owns, partially owns, or operates 15 business and luxury hotels with 3,700 rooms in total as well as four commercial and office buildings with a total useable area of roughly 26,000 m2. Over the past 25 years, Warimpex has developed properties worth over €1 bn.

Hotel special
An in-depth look at the European hotel investment market is published in the December edition of PropertyEU Magazine.