Estee Lauder to upgrade Moscow hotels

Estee Lauder, one of the most successful American cosmetic companies, headed by billionaire tycoon Ronald Lauder is all set to launch a new business venture with the Moscow city government. According to this venture, the newly formed company will be allowed to operate and refurbish almost a dozen hotels in and around Moscow. These hotels will be in prime condition when the country hosts the Winter Olympics in 2014. The venture is said to cost around two billion dollars.

The agreement will be officially announced soon and Lauder will be given a 51 percent share in the newly formed enterprise. They Moscow City Government will hold the remaining 49 percent. In return for this opportunity Lauder will be investing around 31.7 billion roubles or 1.1 billion dollars.

The gigantic Rossiya and Moskva Hotels located near the famous Red Square will be included in the portfolio. Other centrally located hotels that will be included are Renaissance and the Metropole.

Lauder believed that this move would go a step further in fostering healthy trade relations between the US and Russia. It will also be seen as a catalyst to attract further investments from the United States. Also it has been very difficult for US companies to enter the Russian market previously. This situation might see a possible change if this deal is successful.

The Lauder expertise is largely required in order to upgrade the various projects required for the Winter Olympics in 2014. Russia must be equipped to handle such a large influx of tourists primarily in Sochi, where they will be held.