The auction for the privatization of the “Ukraine” hotel will take place on September 18

The State Property Fund (SPFU) of Ukraine has announced an auction for the privatization of the “Ukraine” hotel with a starting price of 1 billion 47.6 million hryvnias. As the Fund’s press service reported, applications to participate in the auction, scheduled for September 18, will be accepted until September 17. The guarantee deposit is 52.3 million hryvnias.

The lot includes 14 registered units real estate projects and infrastructure, which comprise: the hotel building; two buildings security; two non-residential buildings; two car parks, etc. The total area is 26,300 sq m.

In January–March 2024, the net loss of the state enterprise “Ukraine Hotel” amounts to 3.1 million hryvnias. In addition, as of March 31 it has wage arrears (3.8 million hryvnias), overdue accounts payable (21 million hryvnias), and debts to the budget, namely personal income tax (4.7 million hryvnias), tourist tax (1.4 million hryvnias) and land tax (4.5 million hryvnias).

The privatization terms provide for retaining the enterprise’s main line of business (hotel operations) for five years, repaying wage and budget debts within six months of the transfer of ownership, providing social guarantees to employees in accordance with the law and not dismissing them within six months, as well as complying with environmental legislation.

As previously reported, in April the Cabinet of Ministers of Ukraine included the state enterprise “Ukraine Hotel” in the list of large privatization objects. In May, the auction commission set the starting price for the privatization of the “Ukraine” hotel at 1,047,637,152 hryvnias.

The capital’s “Ukraine” hotel is a state enterprise under the management of the SPFU. The 14-storey, “4-star” category hotel has 363 rooms, six conference halls and meeting rooms. There is parking for 80 cars and a shelter that houses a separate auditorium for 50 people. The total area of the building is 22,400 sq m.