Moscow Metropol Hotel sold for 8.8 billion rubles

The Moscow authorities have sold the Metropol Hotel at an auction for practically the starting price, which was 8.7 billion rubles. The hotel sold for 8.874 billion rubles, after only one bid.

LLC SP Metropol, the hotel operating company, told Interfax that Alexander Klyachin's Azimut Hotels bought Metropol. Earlier the businessman consolidated a controlling stake in LLC SP Metropol, which rented the hotel until 2017.

Kyachin's representatives became co-owners of LLC SP Metropol in January. According to the unified state register of legal entities, Klyachin's top managers controlled no less than 50.69% of LLC SP Metropol as of late January. At that time they confirmed consolidation of acontrolling stake in LLC SP Metropol to Kommersant, but refused to disclose the value of the deal. The planned to develop a new business strategy for the hotel. "The next step would be renovation," the report said. The company also said no renovations were planned at the hotel as yet.

The 39,400 square meter, five-star Metropol was sold together with the 10,800 square meters of land it stands on. There were three bidders in the auction.

The Metropol Hotel is an Art Nouveau historical and architectural monument built by patron of the arts Savva Mamontov in 1901. It was one of the most luxurious Moscow hotels until the end of the 20th century, with a unique collection of paintings.

The hotel was renovated in 1991 and awarded the five-star rating. It has 362 rooms, including 72 deluxe, ten conference facilities, among them a conference hall for 300 people, and two restaurants.

Moscow property department head Natalia Bocharova said earlier that the Metropol would not change its focus after the sale. "The auction winner will sign the contract of purchase and the certificate of protection, as this hotel is a cultural heritage object," she said.

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