JSC Hotel Novoslobodskaya, a 100% subsidiary of Joint Stock Company “Open Investments” (“OPIN” or the “Company”), the Moscow-based real estate development and investment company, has acquired approximately 31% of the premises in Hotel “Novoslobodskaya” (Novotel Moscow Centre Hotel) from the Moscow City Government . The transfer of the title was registered on 30 June 2008.

Following the acquisition, the hotel has become 100 per cent owned by JSC Hotel Novoslobodskaya. The acquisition was made possible after JSC Hotel Novoslobodskaya won an auction relating to the sale by the City of Moscow of its property which is to be privatized. The auction was organized by SGUP (a municipal body) responsible for the sale of the City of Moscow property.

A 255-room, “three-star plus” Hotel Novoslobodskaya (Novotel Moscow Centre Hotel) belongs to the category of hotel which is in the highest demand in Moscow. The hotel is managed by the ACCOR Group under the brand name “Novotel” and provides services primarily to business visitors; foreign citizens account for approximately 80% of the total number of visitors. The hotel was opened in September 2002 and is located at 23 Novoslobodskaya Street, next to Mendeleevskaya metro station. The average hotel occupancy rate was, as of the end of 2007, 75%.

Sergey Bachin, general director of OPIN, commented on the auction results: “This event is the successful completion of our mutually beneficial cooperation with the Moscow City Government within the framework of implementation of the programs aimed at the hotel industry and tourism development. We are interested in further promotion of the image of Moscow as an international tourist, cultural and business center, and will do our best to achieve this goal. ”

Vladimir Avekov, chairman of the Joint Commission on Sale of the City Property, head of SGUP responsible for the sale of the City property, said: “As organizers of the auction we are satisfied with the results of the deal and hope that in the future Open Investments will be even more successful in developing the hotel real estate sector – one of the important directions of the company’s activities.”