“Salyut will go under the hammer: the iconic hotel in Pechersk is being sold through bankruptcy
14 August 17:05
on June 30, 2025, the Kyiv City Commercial Court declared the Salyut Hotel Private Joint Stock Company bankrupt due to significant financial obligations. This was reported by "Komersant Ukrainian" with reference to the Unified State Register of Court Decisions.
As of that date, the company’s total debt amounted to UAH 5.4 billion. At the same time, the company has no equity capital left – it is completely losing its financial ability to repay debts.
According to the court, as of the end of 2024, the hotel had losses of UAH 1.23 billion. This was the final indication that the hotel would not be able to restructure its debt on its own without external financing or support.
It should be noted that the hotel is currently owned by the Panamanian company Foster Group Management Inc. according to the YouControl system. It is the ultimate owner of the hotel.
Previously, the hotel was used as a collateral for refinancing loans to Finance and Credit Bank, which was owned by Konstantin Zhevago. In 2015, the NBU declared the bank insolvent, and in 2016, a lengthy lawsuit to recover the collateral – including the Salyut Hotel – began.
Salyut Hotel’s financial problems: the court granted the National Bank the right to recover
As part of the court proceedings, the Northern Commercial Court of Appeal upheld the decision of the Kyiv Commercial Court allowing the National Bank to recover the pledged property – the hotel premises – by selling it at a public auction.
This significantly simplified the procedure for the sale of the asset, allowing the creditor, the NBU, to proceed to an open auction instead of initiating an administrative procedure that could take years.
Hotel asset pledged as collateral: details
The hotel building is located in the central part of Kyiv at 11-B Ivan Mazepa Street. This non-residential building with a total area of 12,255 m² is a large enough asset in an attractive location, which increases its investment rating.
Salyut Hotel offers 89 rooms of various categories. All rooms are decorated in a classic style, in warm sandy colors. The windows of our rooms offer a magnificent panoramic view of the Dnipro River and the Kyiv Pechersk Lavra. It also houses a restaurant of the same name, a pastry shop, the Yabloko cafe, and a billiards bar.
Thus, two questions become key: when exactly the first auction will take place and what value will be determined in the context of market offers. The sale of the hotel could be an important signal to investors: the demand for large-scale assets in times of crisis remains.
Read also: Salyut Hotel in the center of Kyiv to be sold at auction
Salyut Hotel in Kyiv: history of creation, architectural value and current state
The Salyut Hotel was built in 1984 by architect Abraham Miletsky. Erected at 11B Ivan Mazepa Street in Pechersk, on the hill on the right bank of the Dnipro River, it has become the architectural dominant of the capital. This seven-story, three-star hotel with 88 rooms (80 single rooms and 8 two-room suites) offers panoramic views of the Kyiv Pechersk Lavra and the adjacent park.
Miletsky worked on the project together with Nelia Slohotska, Volodymyr Shevchenko, and Dmytro Chuzhyi. The first plan included 18 floors, innovative structures made of high-strength steel cables, and a glass elevator to the observation deck. However, due to bureaucratic reasons, including the influence of the authorities on the architect, the project was severely “cut down”, leaving only seven floors.
“Salute is a vivid example of modernism in Soviet architecture, called futuristic brutalism. The design combines strict forms, minimalist aesthetics, and evokes associations with science fiction. The convex balconies and the central core that creates the illusion of the building hovering in the air make the building extremely recognizable.
Initially, the building became a state hotel for employees of the State Planning Committee. After the collapse of the USSR, the Salyut continued to exist as a commercial hotel, but the interior lost its original authentic spirit as a result of renovations that critics called “post-Soviet kitsch.”
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