KDD Group, the holding company of one of Ukraine's leading real estate investment and development groups, is today pleased to announce that it has signed a letter of intent with FRS Hotel Group International S.a.r.l. (an associate company of Swissôtel Hotels & Resorts) for a management agreement for the hotel component of the Sky Towers project to be operated by Swissôtel Hotels & Resorts.
The Letter of Intent defines the key commercial and legal terms, which will be included in the definitive development and management agreements which are currently being negotiated. A further announcement will be made in due course.
Alexander Levin, Chairman of KDD Group, commented: "The board believes that this Letter of Intent demonstrates the high quality of the Sky Towers project and reflects the strong potential of the Kyiv hotel market. I am very proud to have such a strong and renowned international partner as Swissôtel Hotels & Resorts involved in the Sky Towers project."
The Sky Towers hotel component will be a full-service deluxe international hotel with world-class facilities and characteristics, making it a leading location to host large conferences in Kyiv. The plan for the hotel envisages 550 rooms with extensive conference and meeting facilities, along with several high quality restaurants and bars, in-house spa and fitness and commercial space. In addition, the development will also include 50 high specification serviced apartments.
The board of KDD Group (the "Board") elected to add a hotel component to Sky Towers in order to meet Kyiv's clear deficit of 5-star hotels. The introduction of a hotel element to the Sky Towers project will also reduce the amount of office space in the project, which the Board believes will increase the attractiveness of the project and mitigate the risk of having an over dominant office space offering within the development.
The project is expected to be completed in 2012 and its anticipated opening is expected to occur shortly before the UEFA Euro-2012 football competition commences.