An affiliate of the Hyatt Hotels Corporation has reportedly entered into an agreement with a state unitary enterprise of Uzbekistan to build a brand new Hyatt Regency Hotel in the city of Tashkent. The hotel will help boost the already strong tourism sector of the country.
Hyatt hotels had been in talks with the Uzbekistan government regarding the hotel's set up since 2012. Sometime back in May 2012, the Fund for Reconstruction and Development of Uzbekistan (FRDU) had allocated a loan worth $45 million to build the hotel. The total project cost will be something around $113 million and the structure is slated to be up and running by January 2015, reports HotelOnline.com.
Hyatt will now be building it along with the State Unitary Enterprise ''Poytaht qurilish va xizmat,'' which was established under the patronage of the City of Tashkent as a developer and owner of the Hyatt Regency hotel project.
According to a press statement, plans of the hotel include 300 guestrooms with 44 luxury suites, a ballroom, a spa, two restaurants, a fitness center, a bar and a lounge. The hotel will also have 12,916 square feet of other recreational amenities. The hotel will be situated in the prime location of Navoi Street, just next to the National Library and will have many government offices as its neighbors too.
By building the hotel, Hyatt hopes to improve its presence in the Commonwealth of Independent States (CIS). Five more hotels of the Hyatt brand are under construction in the CIS countries.
"We are delighted by the plans for the first Hyatt-branded hotel in Uzbekistan. The CIS is establishing itself as both an international business hub and an attractive tourist destination, and we believe the Hyatt Regency brand and the enviable cosmopolitan location will attract international travelers visiting Tashkent. Today's announcement demonstrates our commitment to growing our brand presence in new markets," Peter Norman, senior vice president, real estate and development, EAME for Hyatt Hotels & Resorts said in the statement.
While Hyatt is trying to make a mark in the CIS countries, it is also selling away assets that are proving unprofitable. Recently, it listed the Andaz Boutique Hotel in downtown Napa. The Andaz hotel in Georgia is also up for sale. However, it is opening its first Andaz brand in Japan, which is set to open in the summer of 2014.