Hotel Dnipro Privatization08 липня 2020
Hotel Dnipro Privatization
15th of July, 2020
Ukrainian Commodity Exchange informs about the privatization auction of 100% shares of Private Joint-Stock Company «Hotel Dnipro», which owns a unique 4-star hotel «Dnipro» in the very heart of Kyiv — on the European Square.
The hotel was built in 1964 and its location has many advantages, including:
— Proximity to Khreschatyk, the main street of the capital of Ukraine, the very center of the city — Independence Square, the government quarter and public transport;
— Unique views from the windows on the park zone of Kyiv and the Dnipro River.
The hotel building has an area of 12,829 sq.m. and consists of 12 above-ground floors, one technical floor, mezzanine and basement. The room stock (186 guestrooms and suites, from 12 to 56 sq.m. each, for 255 beds) is located on the 4th — 12th floors.
The hotel has:
— 2 restaurants (279 sq.m. and 126 sq.m.);
— 2 bars (119 sq.m. and 63 sq.m.);
— SPA center (326 sq.m.)
— Several conference halls and meeting rooms;
— Parking lot for 56 cars.
The land under the building (0.283 ha) and parking lot (0.158 ha) belongs to the hotel on the right of permanent use.
PrJSC «Hotel «Dnipro» has debts of about 4.8 million UAH (about $178 thousand).
The starting auction price of the shares is 80,923,400 UAH (slightly more than $3 million or about $233 per 1 sq. m.), which is significantly lower than market prices in this area. This is explained by the low book value at which the object is accounted for by the State Property Fund.
The market value of only the land under the building and the parking is at least $5 million.
The terms of the auction require use as a hotel for 5 years with preservation of «Dnipro» brand and give a potential investor ample opportunities how to use the object — from reconstruction of the building into a 5-star hotel to conversion of the building into a business center with a hotel. It is also possible to construct a new building for a business center or a hotel at this location.
Possible investment strategies for participation in the auction are:
— Resale to an investor who could not participate in the auction;
— Local hospitality business;
— Renting to one of the international hotel chains;
— Independent development project;
— Development project in partnership with owners of adjacent land plots.
Should you have any questions please contact Aleksei Sukhorukov at email@example.com or +380 50 443 21 67.