Price for Nizhny Novgorod hotel increased 6 times

The auction for hotel “Oktabrskaya” sale will be held on September 30 2008 in Nizhny Novgorod region.

100% of hotel shares and all the equipment of the hotel are for sale. The complex includes 7-storey building with the area of 4,4 ths m2 (75 rooms) located on Verkhnevolzhskaya embankment and the land plot with the area of 0,3 he, “Vedomosti” reports with the link on the message of the president of “Intourist hotel group” (the group has been leasing and operating hotel “Oktyabrskaya” since 2006) Vitaly Babushkin.

According to the minister of state property and land resources of the region Alexander Makarov the privatization of the hotels should have been held as early as 2007 but was postponed due to technical issues.  The sale auction of the hotel should have been held on December 4 2007, the starting price amounted to $2,8 ths.   

As “Vedomosti” was reported in the press office of the governor of Nizhny Novgorod region the starting price of the hotel on the auction is $16 mln. The sum of the deposit is $3,2 mln.

According to Vitaly Babushkin “Intourist” will take part in the auction. If the group buys the hotel it is going to invest $25 mln to the second stage of the hotel construction (additional 150 rooms).

Source: www.uralpolit.ru