Hotel Transylvanie has become a new symbol of Russia’s growing prosperity as the capital of a once-dire region.
But the $15-a-night hotel on the outskirts of the capital is not a luxury.
It is the site of one of the most expensive real estate deals in the world, according to real estate broker Barry Levin.
The hotel’s sale has raised eyebrows because of its size and the extent of its privatization.
The deal is the latest twist in Russia, where privatization has become the dominant model for many of the country’s companies, including a slew of state-owned companies.
The property includes a $300 million pool, an $8.5 million theater, two 1,500-square-meter (2,200-square foot) apartments and a 3,000-square meter (12,500 square foot) restaurant, according the hotel’s website.
Its privatization, the countrys first in more than a decade, was spearheaded by the Kremlin, which was eager to attract international tourists, said Levin, who said that if the deal went through, it could also lead to more foreign investments.
The state-run Vnesheconombank said in a statement on Monday that the sale was a “fantastic deal” and the government has signed off on the deal.
The government is considering raising taxes to fund the deal, the statement said.
The resort was founded in the 1920s as a luxurious summer residence, but became a sprawling resort after World War II.
In recent years, it has been home to some of Russias most famous sights, including the Kremlin and the Kremlin gardens.
Its owner, the Russian state-controlled oil and gas company Rosneft, acquired the property for $8 billion in 2007.
Its board members include former Prime Minister Boris Yeltsin, the current president.