April 2019

Hospitality newsletter

Hospitality & Leisure Group

The newsletter is based on the information of news agencies and other open sources ( Information Services, The Times, RIA News, Commercial Real Estate, PRIME-TASS News, ITAR-TASS World Service, Vedomosti, Prohotel, Commersant, RBK daily, Hotelnews.Ru, Frontdesk.ru, Rossiyskaya newspaper, HVS hospitality)

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Russia A new Four Elements will open near Mozhaisk, Moscow region The management company Four Elements Hospitality has signed a contract for technical support with further management of a country resort hotel complex located near Mozhaisk, Zarechye village. The hotel will operate under Four Elements brand and will be named Four Elements Borodino, its opening is scheduled for the 4 Q 2019. The Four Elements Borodino hotel will be positioned as an upscale resort with 160 rooms, its infrastructure will include 6 swimming pools (3 indoor and 3 ourdoor), a SPA-center, a sauna complex, a fitness club, as well as an entertainment area including a bowling club, billiards and several restaurants of original cuisine. A hotel under the management of Palmira Group will open in Moscow region Opening of the hotel under the management of Palmira Group is planned at the end of 2019 on the territory of the art-estate Timokhovo-Salazkino located in Vidnoye town. The hotel offers 144 rooms, its infrastructure will include a conference center with a hall for 400 people, a fitness center, a SPA-complex, a restaurant for 100 seats and a lobby bar for 60 seats. The future building will be surrounded by a coniferous park of about 3 hectares. HELIOPARK Thalasso announced its exit from the HELIOPARK chain HELIOPARK Thalasso will change its name since the management agreement signed between the hotel’s owner and HELIOPARK has expired. The hotel will continue its operating activity and will be known under the name Park Hotel ZVENIGOROD. At the moment, the hotel’s fifth building has been completely renovated, moreover, till the end of 2019 it is planned to perform the reconstruction of the third and fourth buildings, as well as a floor-by-floor renovation of its central building. A park hotel will open in Odintsovo district of Moscow region Health and fitness center "Horizon" in Odintsovo district of Moscow region will be reconstructed and turned into a park hotel till the end of this year. The total volume of the company's own investments will amount to RUB 450- 500 m (approximately U$ 8 m). Special attention will be paid to the renovation of children's recreation and entertainment: there will be high-rope courses, assault courses, "City of craftsmen". Only a part of the premises is closed during the reconstruction. Earlier, site and sports facilities improvements were carried out. The new rooms of the hotel have been completed. WYNDHAM HOTELS & RESORTS opens hotel in Saint-Petersburg Wyndham Hotels & Resorts will present the Encore brand in the Becar Group’s hotel complex in the Moscow district of St. Petersburg on Ordzhonikidze street, 44. The hotel complex is planned to be launched in three stages. Five buildings with a total area of about 120 thousand sq. m will be built until 2025. The first of them, a 26-storey building, will house a hotel under the brand Ramada Encore for 469 rooms. The first two floors will be occupied by multifunctional public areas. Business Hotel "Ural" in Neftekamsk joined Four Elements Hotels chain Ural business hotel in Neftekamsk will change its name and joins the hotel chain Four Elements Hotels. The hotel for 84 rooms has the total area of 50,000 sq. The hotel’s infrastructure includes a restaurant on the roof, a sports complex with two pools, a spa area, a fitness room, a billiards club, a five-hall cinema and a concert hall. The hotel also has shopping malls, food courts and parking places.

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USTA Hotels opens a new hotel in Yekaterinburg A new hotel under the management of USTA Hotels will appear in Yekaterinburg. The project is a part of the Russian-Chinese cluster, which aims to develop Chinese tourism in the Ural Federal district. The project will be realized through the restoration of the former hotel "" building. The opening of the facility is planned for 2022. In addition to the hotel, the building will house a restaurant, a museum, a SPA area with fitness, conference rooms, public reception areas and several commercial premises. The total building’s area is 9,200 sq. m. The hotel offers 116 rooms of different categories. Don-Plaza hotel in Rostov-on-Don sold out The Don-Plaza hotel for 254 rooms, auxiliary facilities and land plots under all objects became the property of AGROCOM holding. The company became the only participant of the auction. According to open sources, the transaction amount amounted to RUB 798 m (U$ 12.2 m). According to the new owner, in case of purchase Don-Plaza will be integrated into a single complex with Regency Rostov Don-Plaza mixed-use complex. The company also owns an operating Radssion Blu Hotel located in Beregovaya Street, Rostov-on-Don. Altay Resort opens a new hotel A new hotel for 60 rooms will open on the territory of the all-season resort complex Altay Resort under the management of Cosmos Group (a subsidiary of AFK Sistema) in May 2019. The new building will allow the complex to receive twice as many guests, hold large-scale corporate and MICE events, as well as work with tourist groups. The first floor of the hotel is a multi-functional public area with shops, a pneumatic shooting range, a billiard room, a lobby bar and a restaurant for 80 guests. On the second and third floor there are hotel rooms, each with a private balcony. Two Hyatt hotels in sold out The Russian auction house sold at auction two hotel complexes under construction which planned to open under the Hyatt Regency brand in Vladivostok – on the Korabelnaya Naberezhnaya Street and Cape Burny. The buyer - Park hotel Burduguz – is the structure of EuroSibEnergo. The company was the only participant and was recognized as the winner, as the other participant did not make deposits on schedule. The asking priceы of Korabelnaya and Burny objects amounted to RUB 1.6 bn (U$ 24.6 m) and RUB 2.1 bn (U$ 32.3) respectively.

Kazakhstan Almaty City Center hotel opened in Almaty The official opening of the Novotel Almaty City Center hotel (the first Novotel in Kazakhstan and the 7th group hotel in the country) took place in Almaty. The hotel is located in the close proximity to the Palace of the Republic, the cable way connecting the center of Almaty with the Kok-Tube mountain, in a 30-minute drive from the airport, the mountain skating rink Medeu and the ski resort Shymbulak. The hotel offers 190 rooms, its infrastructure includes a restaurant, a wellness center and 9 conference rooms. The hotel is owned by Alterna Inn company. Uzbekistan Park Inn by Radisson hotel will be opened in Tashkent Radisson Hospitality AB, part of the , is planning to open a Park Inn by Radisson Tashkent City Hotel & Apartments. The new hotel will have 300 room including 50 serviced apartments, a conference area, 5 meeting rooms, a gym, a restaurant, a lobby with a bar, a lounge area and a panoramic bar on the top floor. The hotel is due to open in 2021.

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Park Inn by Radisson Tashkent City Hotel & Apartments will be a part of a large-scale project Tashkent City, which includes business centers, a congress center, shopping malls and residential areas. Hotel operators and companies’ news AZIMUT Hotels opens its first hotel in Israel Hotel operator AZIMUT Hotels opens its first hotel in Israel — hotel Medi Terre in Netanya on the Mediterranean Sea moved under the control of the company. The hotel is located in the resort town of Netanya, known for the having one of the longest strips of the sea coast in Israel. The distance from the hotel to the nearest beach is about 200 meters. The hotel has 60 rooms of different categories. It offers a restaurant, secure parking, business center. DeLuxe rooms feature a private dining room, a sauna and jacuzzi. AC Hotels by Marriott brand goes to The first hotel under AC Hotels by Marriott of chain enters the market of Russia and the CIS and will open in Moscow near the Mayakovskaya metro station at Bolshaya Sadovaya street, 8/1. Hotel with a capacity of 240 rooms is scheduled to open by 2020. Marriott will launch a rental service MARRIOTT International hotel group will launch a global private rental service. As of today, the service operates in a test mode in a number of European countries. However, in the near future it will be launched in the United States, and later in other countries. Marriott plans to introduce a system of bonuses for tenants of hotel rooms, as well as private housing. Such hotel operators as Hilton and Hyatt are also considering the possibility of creating services for rental housing, which will compete with Airbnb. Company LVMH Moet Hennessy Louis Vuitton SE will buy Hotel LLC Federal Anti-Monopoly Service approved LVMH Moët Hennessy – Loius Vuitton S.A. to obtain the control under Europe Hotel LLC, which owns the building of the upscale hotel Grand Hotel Europe for 265 rooms in St. Petersburg at the corner of Nevsky Prospekt and Mikhailovskaya street. This deal is a part of the global transaction between LVMH Moët Hennessy Louis Vuitton SE, the world’s leading luxury group, and Belmond Ltd., owners, part-owners or managers of 45 luxury hotel, restaurant, train and river cruise properties. The total amount of the whole transaction —U$ 2.6 bn. In March this transaction was approved by the European Commission.

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For more information about the newsletter please contact:

Anna Levina, CCIM Ksenia Panzhinskaya Manager, Hospitality & Leisure Advisory Services, Account Manager, Russia & CIS Business Development Department +7 (495) 662 9352 +7 (495) 755 9700, ext. 4554 [email protected] [email protected]

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