10 Mar 2023 09:32

Sistema subsidiary closes acquisition of Russian hotels from Norway's Wenaas

MOSCOW. March 10 (Interfax) - Cosmos Hotel Group (CHG), a division of Russian investment group Sistema PJSFC , has closed a deal to acquire the companies that own ten hotels in four Russian cities, including Park Inn by Radisson, from Norway's Wenaas Hotel Russia AS for 200 million euros.

The amount includes a voluntary contribution to the Russian budget, which was one of the conditions for securing permission for the exit from the Russian authorities.

The deal, which was structured through Cosmos HG LLC's wholly owned subsidiary Cosmos Northwest LLC, includes six hotels in St. Petersburg: Park Inn by Radisson Pribaltiyskaya, Park Inn by Radisson Pulkovskaya, Park Inn by Radisson Nevsky, Radisson Blue Royal Hotel, Park Inn by Radisson Pulkovo and Olympia Garden Hotel. It also includes the Park Inn by Radisson Sheremetyevo and Radisson Blu Sheremetyevo Airport in Moscow, as well as the Park Inn by Radisson Murmansk and the Park Inn by Radisson Ekaterinburg in these respective cities.

The acquired hotels have a total of 4,078 rooms and combined area of 264,100 square meters. Their combined revenue totalled 4.3 billion rubles in 2021.

When Sistema announced the deal on February 1, it said the acquisition of the hotels from Wenaas Hotel Russia AS would enable CHG to double the number of hotel rooms in its portfolio and strengthen its position on the Russian hotel services market.