The Zemlianoy Development is a proposed mid/high-end hotel located in the southeast center of Moscow a short distance from the Garden Ring and in close proximity to the Theatre at Taganka – a famous Moscow landmark. Two underground metro stations, Kurskaya and Taganskaya, are located close to the development site.

Design
RGI’s current design for the Zemlianoy Project envisages a 4 star hotel with approximately 180 rooms. The gross area of the development is 9,630 sq.m . The hotel is designed to include all common amenities and facilities of a modern, city center business hotel and will meet the design standards of most international hotel operators.

Status
The proposed development plan for Zemlianoy is based on RGI’s possession of a co-investment contract and appropriate and suitable zoning. The development is currently in the concept design stage. The Company’s next step is to obtain a land lease agreement and then finalize detailed design. The project is expected to be completed to a shell and core standard during 2012 assuming that the necessary financing for construction is organized and the remaining design and construction permissions are obtained on a timely basis.

Strategy
RGI’s strategy for Zemlianoy is to engage a branded hotel operator and hold the building thereby generating a source of recurring income for the Company, although RGI would also consider selling Zemlianoy outright under appropriate market conditions either before or after the project is completed.