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Billionaires God Nisanov and Zarakh Iliev to build three hotels in the center of Moscow

6 October 2016


Nisanov told Forbes about the new projects of the Kievskaya Ploshchad Group: a five-star hotel on Varvarka street, the book-house on Noviy Arbat and a long term construction project on Nikitskiy Boulevard.

In less than a year, Zaryadye park should open at the site of the demolished Rossiya Hotel near the Kremlin. The amount of budget investments is estimated at 20 billion rubles. The hotel, built on the site of a tenement house at the very beginning of Varvarka Street, will be adjacent to the park. Businessman Dmitry Shumkov, co-owner of the Olimpiyskiy sports complex, bought this house from the city for 3,4 billion rubles in order to tear it down and replace it with a luxury hotel.

In December 2015 Shumkov was found dead in one of the apartments of Moskva-City. In September, the Kievskaya Ploshchad structures acquired from his heirs 87% of the shares in OOO Multifunctional Complex Varvarka 14 b. 1, 2 which owns the rights to the project . According to God Nisanov, acquaintances informed him of the  Shumkov’s heirs’ intention to sell the project in March. Co-owner of the Kievskaya Ploshchad does not disclose the deal value, however adding that about $ 400 million  more to be invested in the project. Gazprombank will participate in the financing of construction.

«Многофункциональный комплекс Варварка» до ремонта 

For this project, God Nisanov and Zarakh Iliev will partner up with Artem Dyumin, former general director of the Olimpiyskiy sports complex. According to The New Times magazine, Dyumin is the brother of Alexei Dyumin, a former Federal security guard officer and deputy defense minister , who is now a governor of the Tula region. Artem Dyumin owns a 13% stake in OOO MFC Varvarka. Do Iliev and Nisanov plan to buy his share? “We have normal companionship. For this partnership, I do not see any problems for myself in the future, - says God Nisanov. -  To approach someone  and offer to buy out his business is unethical”.

The total area of the new hotel will be 65,000 square meters, 50,000 of them are above ground. One half is for a five-star hotel, the other one is for  apartments. Currently the owners of the facility are in talks with the Mandarin Oriental and Hilton (Waldorf Astoria brand), discussing who will be the project operato .


According to Nisanov, Kievskaya Ploshchad reduced the height of the future hotel and decided to preserve the historical appearance of the facades. The only contemporary glass facade will be the one that faces the Zaryadye park. Part of the Kitay-Gorod wall with a pedestrian passage through it will be preserved. The Bashnya restaurant will move to the top eighth floor and will become panoramic. In agreement with the city, all work must be completed in three years and two months. Currently the company is closing its debts to contractors and the city and is preparing to take the building out of emergency state.

Kutuzovskiy Prospekt - Noviy Arbat Line

In August, Kievskaya Ploshchad closed another big deal, says Nisanov: the company bought from the town 100% of the AO Obnovleniye Arbat, which owns the book-house on 21 Noviy Arbat, next to the Lotte Plaza. Alexey Mikushko, Nisanov’s manager, has already been appointed as the CEO of Obnovleniye. Sold-to party do es not disclose the transaction amount, however, in 2014 the building was estimated at 2.5 billion rubles. The area of the purchased premises is 29,000 square meters, currently it is being rented for offices. According to SPARK - Interfax, the revenue of Obnovleniye Arbat in 2014 amounted to 388 million rubles, rental of premises being its  core activity .

If you go to the center along Kutuzovskiy Prospect, Zarakh Iliev and God Nisanov’s five-star Radisson Royal Hotel, the former Ukraina Hotel, is a little more than a kilometer away. Next to 21 Noviy Arbat street is the Lotte Plaza building complex and the five-star Lotte Hotel. Are businessmen afraid of competition? “Three to four star-level projects are sorely lacking in the center,” says God Nisanov. “We would like to see hotels of different price categories in such a symbolic place as Novyi Arbat.”

Businessmen intend to reconstruct their “book” and make it a 4-star hotel. The project has not yet been worked out in detail, and negotiations with the future operator are not ongoing. So far, the building operates as an office center and is 70% full, but tenants are informed that soon it will be closed for reconstruction.

 Здание-книжка на Новом Арбате, дом 21 



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