The winner of the auction for the privatisation of the legendary Kyiv hotel Ukraina paid ₴2.5 billion and an additional ₴502 million in VAT. As a result, more than ₴3 billion has been added to the state budget, according to the Ministry of Economy.
Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy, noted that the initial price of the hotel increased 2.4 times due to competition at the auction. “This is the first large-scale privatisation object to receive new owners, which means it has prospects for additional investment and development,” she added.
According to the government’s terms, the new owner of the hotel is obliged to maintain the core business profile, pay off wage arrears and budgetary obligations, and repay overdue payables. As of the end of March, Ukraina Hotel had ₴3.9 million in salary arrears, ₴10.8 million in budgetary obligations, and ₴21 million in overdue accounts payable. In addition, the buyer is obliged to guarantee the employees’ social rights and not to dismiss them for at least six months.
The auction for the sale of the Ukraina Hotel was held on 18 September via Prozorro.Sale, and the next major privatisation auction is scheduled for 19 December 2024. Aeroc LLC will be put up for sale with a starting price of ₴965.3 million.
