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. Last Updated: 07/27/2016

Hotel Developer Set to Invite Tenders

The Dutch-German firm ADVANTA Management AG will hold tenders for construction, financing and hotel management contractors as part of its redevelopment of the landmark Hotel Moskva on Manezh Square, Andrei Bykov, a consultant to the group said Wednesday.

Bykov said details of the tenders will be announced within the next two months after the Moscow city government gives final approval to the project.

Last week, an official tender committee chose ADVANTA as the main developer for the Moskva Hotel site, one of the biggest real estate projects in Moscow.

Under the terms of the tender, local designers must be involved in the project. But Bykov said ADVANTA would hold three international tenders: a lead financial advisor, a construction company and a hotel manager for the hotel after redevelopment.

Bykov said that ADVANTA will retain the external facade of the building which it plans to enhance with modern lighting.

He said that ADVANTA will invest $310 million to $350 million in the project, which includes general upgrading of the Moskva's facilities, construction of an underground garage under Manezh Square and a large, modern conference center.

Bykov also said ADVANTA has completed a similar hotel development project last year in Budapest, Hungary, where it had to deal with the subway line underneath the building - an obstacle which it will face once again in Moscow.

The bidding is expected to be completed within the next two months and the construction works will begin Sept. 1, said Bykov. He said the rebuilding is expected to be finished in 24 months.

ADVANTA has already chosen two Russian consultants for the project. The Menatep financial group will handle ruble financial operations and Moscow Region Development Fund Corp. will do legal consulting, said Bykov.