Alexander Klyachin buys METROPOLE Hotel in Moscow for 280 million dollars
Hotel entrepreneur Alexander Klyachin paid 280 million dollars, last week, for the Metropole Hotel, one of Moscow’s most prominent downtown hotels, through a privatization process. The 362 key Metropole hotel which has an exceptional location, situated within steps from the Kremlin and opposite the Bolshoi Theatre, has been operating as a four star hotel for the past years, despite its potential of a five star positioning. The five-storey building’s facades feature painted mosaics, carved reliefs and ornate iron balustrades. Inside, there are marble walls, grand chandeliers and glass elevators.
Klyachin already controls the company that manages the Metropol, and is also chairman of the board of Russia’s Azimut Hotels. A source close to Klyachin said there were “no particular plans for now” but that “the building will remain in the current condition, the edifice will remain intact.”
It remains to be seen whether a major international luxury chain will take over the management of the hotel, especially considering the huge potential of Moscow’s luxury hotel market. Moscow is also one of the most challenging business environments for hospitality, with projects such as the Mandarin Oriental cancelled and the Four Seasons Hotel (situated in the same square as the Metropole) already facing major delays and with an uncertain opening date. For the metropolis of the size of Moscow, there are only three luxury international chain hotels: Park Hyatt Ararat, Ritz Carlton and Kempinski.