Optimization of JFSC Sistema’s hotel business prompts sale of Pekin hotel

JFSC Sistema, acting via its affiliate Intourist, has continued its policy of offloading non-core assets by selling its Pekin office and hotel complex to Baging-Invest for an undisclosed sum in March. The sale, the management said, was carried out within the policy of optimization of assets in accordance with the company’s hotel business development strategy.

Commenting on the transaction, Intourist President Alexander Arutyunov noted that this strategy envisages the creation of a network of hotels with unified standards. “Pekin has potential of a historic 5-star hotel, but its restoration and upgrading to a 5-star level will require lots of capital that are not envisaged by the company strategy.”