Auction with three participants. The most legendary hotel in Kyiv has been sold — it has been renovated

“Auction with three participants. The most legendary hotel in Kyiv has been sold — updated September 18, 13:33 Share: Hotel Ukraine in the center of Kyiv (Photo: Wikipedia / Ralf Roletschek) The online auction for the privatization of Hotel Ukraine in Kyiv started on Wednesday, September 18, with three registered participants. UPDATED at 1:33 p.m. According to the auction data in the Prozorro.Prodazhi system, the starting price of the object is 1 billion 47 million 637.1 thousand UAH (without VAT).”, — write on: ua.news

According to the auction data in the Prozorro.Prodazhi system, the starting price of the object is UAH 1 billion 47 million 637.1 thousand (without VAT). The maximum offer at the stage of closed bids came from participant No. 1 — 2 billion 511 million 777.8 thousand UAH, which is 2.4 times more than the starting price.

Updated. As reported on the Prozorro.Prodazhi website, the winner offered more than UAH 2.5 billion for the hotel — 2.4 times more than the initial price.

“The first large-scale privatization auction proves that despite the war, privatization is possible and necessary, it takes place honestly, openly and transparently. This is also evidence that investors believe in our state, opportunities and prospects. Thanks to this, the economy received the necessary investments in modernization and development. This year, we expect to receive UAH 4 billion in the budget from the privatization of state property, for January-August we have already held 275 successful auctions and received a total of UAH 2.4 billion. The auction procedure makes it possible to significantly increase budget revenues,” Yuliya Svyridenko, the First Deputy Prime Minister and Minister of Economy of Ukraine, emphasized.

The lot includes a hotel complex with an area of ​​almost 22.5 thousand m² and 365 rooms with a restaurant, business center, six conference halls and other facilities. As well as a security building, non-residential buildings, parking lots, an extension and a shed.

The sales contract is signed only after the winner has paid the price of the lot. For this, he has 30 working days from the day of the end of the auction.

“Competition led to a 2.4-fold increase in the value of the asset. This is a clear confirmation of the readiness of the Ukrainian market to compete for large objects. Next, the FDMU Team plans to hold online auctions for the privatization of JSC United Mining and Chemical Company, LLC Aerok and LLC Demurinsky GZK, – emphasized Acting Head of the FDMU Ivanna Smachilo.

“The first transparent online auctions from large-scale privatization took place on Prozorro.Prodazhi. The example of the Ukraine hotel shows that the impossibility of interfering with the course of bidding and equal access of participants to participation in the auction promotes the sale of objects at the market price. Through online auctions, business gets access to unique objects, and the state effectively manages its assets,” said Serhii But, CEO of Prozorro. Sales.

According to the terms of the sale approved by the government, the buyer must maintain the main activity of the enterprise, pay arrears from wages and to the budget within six months, as well as repay overdue payables. As of the end of March, Hotel Ukraine owed 3.9 million UAH in wages, 10.8 million UAH in front of the budget, overdue payables — 21 million UAH. In addition, the buyer must provide social guarantees to the employees in accordance with the requirements of the law and cannot dismiss the employees within six months from the date of acquisition of ownership.

Capital hotel Ukraine — a state-owned enterprise under the jurisdiction of the FDM. It has 363 rooms, six conference halls, meeting rooms. There is a parking lot for 80 cars and a shelter in which a separate auditorium for 50 people is located. The hotel’s debt to date amounts to more than UAH 45 million.

It was previously reported that at the end of December 2021, the State Enterprise Hotel Ukraine (Kyiv) State management of affairs was transferred to the Ministry of Infrastructure. The corresponding decree No. 677/2021 was signed by President Volodymyr Zelenskyi.

On December 13, the Ministry of Infrastructure signed a memorandum with the Qatari investor Al Rayyan Tourism on attracting investments in the development of tourist and hotel infrastructure. In particular, it is about the modernization of Hotel Ukraine.

On April 25, 2024, the Cabinet of Ministers of Ukraine included Hotel Ukraine in the list of large privatization objects. The State Property Fund plans to hold an auction for the privatization of the Ukraine Hotel at the end of the summer of 2024. The object is valued at UAH 1.039 billion (without VAT).