Russians consider buying houses in Karlovy Vary prestigious and safe

Moscow - Russian entrepreneurs view investments in spa buildings in the Czech Republic as prestigious and much safer than similar businesses in Russia. They have therefore favored the West Bohemian spa town of Karlovy Vary. The most expensive city hotel chains, Imperial and Bristol, are owned by Russians, and last year they began financing the construction of two more hotels by the Russian companies Inteko and Sistěma, reported the Russian daily Vedomosti today.
The latest major Russian investment in the spa town is promised by the Russian construction company Inteko, which already auctioned a plot of land last year for the construction of a luxury hotel. It is currently preparing the project and looking for a contractor. The expected investment volume will reach about ten million dollars, Vedomosti quoted a representative of Inteko.
Last year, the Russian company Sistěma also completed the construction of a hotel in the West Bohemian spa. The spa complex for 128 guests was under reconstruction for three years and cost several tens of millions of dollars. The hotel in Karlovy Vary is also owned by the Moscow city hall.
Russians began to acquire, renovate, and build properties in the Czech Republic at the beginning of the 1990s. "There were several reasons for this: primarily low prices, especially compared to Moscow, and the popularity of the Czech Republic among Russian tourists. There were many hotels built during socialism that were unacceptable for Europeans, but they did not bother us," quoted Vedomosti Marina Smirnova from the consulting company Colliers International.
In the mid-1990s, a decent property in Karlovy Vary cost around 100,000 dollars, Vedomosti stated. Today, guides show Russian tourists which hotels have Russian owners. Some Russian travel guides indicate that up to 70 percent of the houses in Karlovy Vary are in Russian hands. According to insiders, for example, two hotels - Pavel's House and the Colonnade - belong to the Russian director and actor Nikita Mikhalkov. However, his assistant Denis Baglay denied this information. Six hotel houses are owned by Russian entrepreneur Alexander Rebenkov, and a network of Karlovy Vary hotels also belongs to the Russian businessman Boris Kočerov. However, Russian owners mostly do not want to talk about their property abroad.
"Many Russian companies own real estate in the Czech Republic, but they are in no rush to inform about it. Most of the houses were bought by chance. For many, it is not even a business, but a matter of prestige," believes Sergey Kolesnikov, director of Orange Ring Hotel Management.
Other experts believe that owning real estate in the Czech Republic has psychological significance for Russians as well. "The investment risk is lower here: there is a long-established market, a good level of service, and high attendance compared to Russian spas, which are seasonal," believes analyst Irina Ushakova.