VTB relinquishes ownership of Swissotel Resort Sochi to Camellia in a sale transaction.
VTB Group Sells Swissotel Resort Sochi Kameliya to Correct Solutions for 10 Billion Rubles
In a significant move, VTB Group has sold its five-star hotel, the Swissotel Resort Sochi Kameliya, to Correct Solutions for a reported 10 billion rubles. Dmitry Pyanov, First Deputy President and Chairman of the Management Board of the Bank, confirmed the sale and stated that it is part of the Bank's strategy to reduce non-core assets.
The deal marks a strategic shift for VTB Group as it aims to minimize capital strain by shedding non-essential assets. According to Dmitry Pyanov, this strategy was influenced by regulatory changes. He further added that the sale of LLC "PanSIonat Kameliya," the owner and operator of the Swissotel Resort Sochi Kameliya, is one of several real estate objects the Bank plans to divest by the end of 2025.
Correct Solutions, the winning bidder for the sale, plans to convert the hotel into a luxury apartment complex. This redevelopment aims to cater to the high-end market segment by transforming the hotel facilities into upscale residential apartments. The company also plans to invest in the further development of the property and enhance the service standards of the Swissotel Resort Sochi Kameliya.
The investment by Correct Solutions is expected to improve the economic performance of the hotel and help it thrive, thanks to the buyer's experience in the tourism sector. The company has also stated that it aims to maintain the hotel's reputation as a five-star resort while providing a new residential experience.
VTB Group has sold its entire stake in LLC "PanSIonat Kameliya," marking the divestment of one of its largest assets. This move is expected to help the Bank focus on its core operations and strengthen its financial position.
As the Swissotel Resort Sochi Kameliya undergoes its transformation, it remains to be seen how the luxury apartment complex will impact the tourism industry in Sochi. However, with Correct Solutions' plans to invest in the property and enhance its service standards, it is hoped that the hotel will continue to attract visitors from around the world.
In line with VTB Group's strategy to reduce non-core assets, the sale of the Swissotel Resort Sochi Kameliya to Correct Solutions for 10 billion rubles signifies a significant step in their business plans. To capitalize on this investment, Correct Solutions aims to redevelop the hotel into a luxury apartment complex and further invest in its development, potentially contributing to the tourism industry in Sochi by maintaining the resort's reputation while offering a new residential experience.
