ISTIL Real Estate, the developing sub department of ISTIL Group (both located in Kyiv), which in the fall 2009 bought a premise at 24/39 Prorizna Street in Kyiv to construct the four-star Leipzig Hotel, plans by June 2010 to chose an operator of the hotel, with the condition that the operator takes part in the hotel's development.

"A preliminary decision on the choosing of the operator of the Leipzig Hotel will be made within a half of the year, by the start of building work in June 2009. Contrary to the existing approach in Ukraine, we look for a business partner in the operator, who shares our high confidence in the potential of the Kyiv hotel market in the four-star segment and shares risks with us. The operator will pay a fixed rent rate and invest its own funds in the project development," noted ISTIL Real Estate Director General Martin Hormuth.

He added that the requirements for the future operator of the Leipzig Hotel are new for the Ukrainian market.

"Up-to-date, we're considering proposals from several high-level international hotel operators. Hence, the process is open, and new proposals will be considered," he admitted.

Hormuth also said that if the quality and structure of a contract with the operator were not in line with the group's commercial expectations, the group would independently manage the hotel.