Orient Express Hotels acquires Russia's Grand Hotel Europe

HAMILTON, Bermuda -- Orient-Express Hotels, based here, acquired the 301-room Grand Hotel Europe in St. Petersburg, Russia. The purchase price for the hotel, previously managed by the Kempinski group, was not disclosed.

Plans call for investing at least $125 million to refurbish the property, which is located on Nevsky Prospect not far from the Russian Museum. Orient-Express Hotels owns 48 deluxe hotels around the world.

We feel the competitive situation is good with only one other 5-star property in the city, said Simon Sherwood, president of Orient-Express Hotels in a statement. Business activity is increasing in the region as St. Petersburg has always been a major educational center & . Thus, there is and will be an increasing demand for luxury hotels by the business community.

To contact the reporter who wrote this article, send e-mail to Michael Milligan at [email protected].

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