Russian Hotel Investments BV

completed

The development of five mid-market greenfield hotel properties in the Russia Federation, to be operated by Accor, in the frontier regions of Kaliningrad and Yaroslavl, and in Samara and Krasnoyarsk (the “Project”). The Project aims to satisfy the growing demand for budget and economy hotels operated under international standards (3 star IBIS and 4 star Novotel hotels) in the Russian Federation. The five greenfield hotel properties will be developed in Samara (207 IBIS rooms), Kaliningrad (210 IBIS rooms), Yaroslavl (180 IBIS rooms) and Krasnoyarsk (150 IBIS rooms and 150 Novotel rooms).The Project development will be managed by KasaAkfen Real Estate Development LLC (“the Company”), with the help of Kasa Stroy (a company under the Turkish Kayi Group with expertise in design and construction), and with quality monitoring for the implementation provided by Thost (German expertise based project management company). The internationally well known hotel operator Accor will be responsible for operating the hotels under the IBIS and Novotel brands.The locations of the individual hotel sites, which have all been acquired or leased with clean titles, are as follows:Samara: The 2,466 m2 site for the Samara IBIS hotel is located along the main Novo-Sadovaya Street, next to an existing Marriott–Renaissance Hotel. The land behind the hotel and connected office building is a residential area. The land was an empty privately held land plot before the land acquisition and construction start. Yaroslavl: The 4,306 m2 site for the Yaroslavl IBIS hotel is on Pervomaysky Lane within the historic city limit on an empty lot leased from the Regional authorities. The hotel property will be developed within the Yaroslavl UNESCO World Heritage Site. Kaliningrad: The 2,407 m2 site for the Kaliningrad IBIS hotel is in the center of Kaliningrad on Moskovsky Prospekt (a 6 lane road) at the crossing with Leninskiy Prospekt and with the back towards the Pregolya River. Other buildings surrounding the hotel are office and retail related. The site is empty and was acquired from the local authorities.Krasnoyarsk: The joint 3,601 m2 site for the Krasnoyarsk IBIS and Novotel-branded hotels is a prime lot on Karl-Marx and Weinbaum streets close to the main square. The site, which has long been unoccupied, previously belonged to the old municipal hospital, which is in the process of relocating away from the city center. Other surrounding buildings include office and retail activities, and a small chapel, which will be reconstructed during the construction period.