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. Last Updated: 07/27/2016

Hotel Firm Acquires First Link in Chain

Russian Hotels announced it would complete the acquisition of the 68-room Yakhont Hotel in Krasnoyarsk in March. It will become the first property of what later may become a countrywide chain of mid-range hotels, the company said.

Russian Hotels, a company close to metals conglomerate Basic Element, was created last fall with an aim to invest between $200 million and $250 million to create a portfolio of 20 to 30 new or renovated buildings over the next three to five years in Russian regions and CIS capitals.

The company will invest roughly $4 million into reconstruction of the 6,800-square-meter, 1970s-built Yakhont. Upon refurbishment, the hotel will be classified as a three-star property, charging between $70 and $100 per night.

Russian Hotels said it was about to sign a management contract with South Africa's Protea Hotels to run the hotel once reconstruction has been completed.