Kiev: "XXI Century" plans to begin construction of the Sofitel Hotel

Development Company "XXI Century" (Kiev) is in talks about raising equity capital in a project to build five-star Sofitel Hotel at the corner of st. The Lutheran and Kruglouniversitetskaya, chairman of the board of directors of Lion Partskhaladze.
"We see the development of several projects in 2010. We are actively now considering the construction of the hotel Sofitel. I hope that soon we will be able to say clearly that we will begin construction. While the process of negotiation. While I do not want to comment to anyone. The question is about raising equity capital for the construction of this project. Details do not want to disclose yet "- he said.
At the same time L. Partskhaladze not announced details of the negotiations, noting that in the event of a positive end hotel construction will be launched, probably in the first quarter of 2010. The head of the board of directors "XXI Century" recalled that before the crisis of the budget of this project amounted to about USD 100 million
"The budget of the project until the crisis was about $ 100 million when we will hold a tender for construction works, then we can clarify how much today is the budget of the project" - he said.
Asked whether the company will have time to finish the hotel, so she was able to receive visitors during the European Football Championship in 2012, L. Partskhaladze said that "we will try very hard. I think yes.
At the same time L. Partskhaladze said that "the next step is implementation of projects and shopping centers housing the premium in Kiev. This is yet more desire than clear solutions. However, he did not elaborate on what specific projects in question and the timing of their implementation.
Chairman of the Board of Directors also announced that the company plans to attract bank financing for their projects.
"Certainly, we begin to discuss (the possibility of attracting loans from banks - Ed.). Of course, we will borrow, if we start to build a hotel "- he added.
Commenting on the situation in the real estate market in the country, LA Partskhaladze said that, according to his feelings, a price "floor" in the market has already been achieved.
"We feel that the bottom is about to have reached the bottom of the onset and symptoms are present. Another issue that we will feel the bottom only when we feel the growth and when growth will be repeated several times. I feel the "bottom" is, but market development seriously affect the upcoming presidential elections ", - he said.
As reported, the developer "XXI Century" in 2007 reached an agreement with Accor to manage the five-star hotel Sofitel, which was to be built by 2010 in preparation of Kiev to the European Football Championship 2012.
It was assumed that the Sofitel Hotel at 298 rooms is located on a 0.4 hectares on the corner ul.Lyuteranskaya and Kruglouniversitetskaya. Construction scheduled to begin in the second half of 2007, and commissioning, was announced in late 2009 - early 2010.
In October, development director of Accor Hospitality in Central and Eastern Europe Bello, Nicolas (Nicolas Bellot) informed the agency that the hotel operator Accor Hospitality (France), still plans to run open in Kiev hotel branded Sofitel (five stars) despite the fact that the relevant project, which was implemented with the developer "XXI Century" (Kiev), suspended because of the crisis.
N. Bello also does not exclude that in the future Accor can redeem in Ukraine is a hotel and converted it under its non-standardized hotel brand Mercure (middle-class hotel).
French hotel operator Accor manages 4 thousand hotels in over 90 countries, in particular, hotels under the brands Sofitel, Novotel, Mercure, Ibis, as well as the Parthenon (Spa Hotel), Suitehotel, Accor Thalassa (SPA and resorts), Club Mediterranee (health and SPA-resorts), Lenotre (restaurants), Groupe Lucien Barriere SAS (casino), budget hotels under the brand Etap, Formula 1, Motel 6, Studio 6, Red Roof Inn, the two travel companies, Go Voyages and Carlson Wagonlit, and restaurant chains Ticket Restaurant , Luncheon Vouchers.

Source: Property Times