The Moscow city government plans to privatize a number of city’s high-profile hotels, where it will retain 50% stake and transfer their management to private operators. The step is directed at optimizing the government’s stakes in city’s hotels, where they range from a mere 15% to full ownership. The city plans to transfer these stakes into charter capital of the Incorporated Hotels Corp., which is being currently set by the government in partnership with private investors. Specifically, some of the assets on the privatization list include the Renaissance, Radisson SAS, Budapest, National and several other properties in the industry, according to the Business FM radio station.
Commenting on these developments, MosCityGroup Board of Directors Chairman Paul Fuks noted that his company is interested in boosting its stake in the Budapest Hotel, from the present 70% to 100%. “We already own the Peter 1 Hotel, which, along with the Budapest Hotel, constitutes a unified hotel complex,” he added. “Therefore, it is very difficult to separate one from another, as they, in fact, have a common system of goods supply, joint restaurant and one kitchen. So, I don’t know who else can buy Budapest, except us.”
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