AFK Sistema purchases Russia’s largest medium-price hotelier

AFK Sistema purchases Russia’s largest medium-price hotelier
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AFK Sistema, which a major private investor in Russian real estate segment, intends to buy Regional Hotel Chain, RGS, which is one of Russia’s largest hoteliers of medium price bracket, the VIYM press office reports.

The parties signed a legally binding sale and purchase agreement on acquisition of the hotel chain providing services under the leading international brands, including Park Inn by Radisson, Holiday Inn Express and Courtyard by Marriott.

The facilities are estimated at 6,6 billion roubles, 2,6 billion of which will be paid by the buyer and the rest will comprise the debt.

Regional Hotel Chain has become one of the first projects, to which we have been attracting investments, years later, it dominates regional hotel market of Russia. We have invested in the project heavily and I’m sure that under professional leadership of AFK Sistema, Regional Hotel Chain will continue its dynamic development,” said managing director at VIYM, Dmitry Schuetzle.

Colliers International acted as the transaction’s consultant.