Ukrainian state budget receives 3.01 bln hryvni from Ukraine hotel privatization - State Property Fund

MOSCOW. Oct 31 (Interfax) - The Ukrainian state budget has received all the funds from the sale of Kiev's Ukraine Hotel, Ukrainian media reported, quoting the Ukrainian State Property Fund as saying.

The winner of the auction, Ola Fine LLC, which belongs to Maxim Krippa, the owner of the Navi cyber sports team, paid the cost of the facility totaling 2,511,511,777,888 hryvni and additionally transferred VAT for 502,355,578 hryvni.

As reported, the first in the history of Ukraine online large-scale privatization auction in the Prozorro.Sales system took place on September 18, 2024. Three bidders competed for the ownership of the hotel compound, with the starting price having increased 2.4-fold from 1.05 billion hryvni to 2.51 billion hryvni.

"The successful holding of the auction and the full payment for the cost of the Ukraine Hotel confirm the Ukrainian market's readiness for a large-scale privatization. The competition between the participants ensured the growth of the asset's value and its market value [...]. This is significant that the hotel gets a new life and development prospects thanks to privatization," acting State Property Fund head Ivanna Smachilo was quoted as saying in the statement.

The integrated property compound includes a 14-storey hotel with an area of almost 22,500 square meters for 365 rooms with a restaurant, business center, six conference halls and additional infrastructure, including guarded buildings, non-residential buildings, parking lots and other facilities.

Ukraine Hotel's net loss totaled 3.1 million hryvni in January-March 2024. As of March 31, the hotel had wage arrears totaling 3.8 million hryvni, overdue accounts payable standing at 21 million hryvni, debts to the budget, namely, those for personal income tax at 4.7 million hryvni, tourist tax at 1.4 million hryvni, and for land tax at 4.5 million hryvni.

The conditions for privatization stipulate maintaining the core business of the company (hotel operations) for five years, repaying wage and budget debts within six months from the date of transfer of ownership, providing social guarantees to employees in accordance with the legislation and preventing them from being dismissed within six months, as well as compliance with the requirements set by environmental legislation.

The government included the Ukraine Hotel in the list of objects for large-scale privatization in April. The auction commission set the starting price for the privatization of Ukraine Hotel at 1,047,637,152 hryvni in May.

According to Opendatabot, the owner of Ola Fine LLC is ZNVKIF Ares Capital JSC, while its ultimate beneficiary is owner of the Navi cyber sports team Maxim Krippa. Ola Fine is also the owner of Kiev-based Parus business center.