Gutseriev to build $130m-worth hotel complex in Moscow centre instead of Baturina

Gutseriev to build $130m-worth hotel complex in Moscow centre instead of Baturina
Gutseriev’s company is going to build a hotel complex worth $130 million

The cost of the project may reach $130 million.

Safmar Group owned by the Gutseriev family will build a hotel complex on the site of earlier demolished Warm Trading Rows near Red Square. The project was supposed to be run by Inteko, at that time headed by Elena Baturina, the wife of Moscow’s ex-mayor, Newsru.com reported.

The Federal Antimonopoly Service gave approval to Rost-kapital to purchase Warm Trading Rows JSC. Rost-kapital belongs to Rost-bank, which is part of the Safmar Group (formerly the BIN Group).

The hotel complex together with a parking lot for 100 cars will spread for 18 thousand square meters taking three sites on Ilyinka Street and Vetoshny Lane. The estimated cost of the project would be $130 million.

Inteko started working on the project in 2004. Then the city administration decided to reconstruct the monument of the late 19th - early 20th century. After the historical buildings were demolished, they were going to build a hotel complex for 180 rooms, which would be Inteko’s property after they compensated the use of social and transport infrastructure, 267 million rubles ($4.7m). The company managed to demolish 80% of the buildings, but it never started the construction. In 2010, Luzhkov lost his mayor’s post, and BIN Group bought Inteko for 1.2 billion dollars.

Safmar Group has already built 9 luxury hotels in downtown Moscow, as well as one hotel in Minsk and one in Astana. Safmar owns National Hotel in the center of the capital. The total revenue from these hotels in 2016 amounted to 7.2 billion rubles ($127.3m).

According to Forbes, Mikhail Gutseriev has ranked first on the list of the "kings" of Russian real estate and 226 in the world list with a fortune of 6.3 billion dollars.

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