WORLD : Sheraton, Pan Am Sign Pact With Soviets to Build 2 Hotels

ITT Sheraton Corp. and Pan American World Airways Inc. today signed an agreement with the Soviet Union to build two luxury hotels in the Soviet capital with the first Sheraton Moscow Hotel to be completed in 1992 for $75 million.

The hotels will be operated and owned by a joint venture formed by ITT Sheraton, with 40% of the investment; Pan Am with 10%, and two Soviet organizations with the other 50% of the investment--Mossoviet, Moscow’s City Council, and Aeroflot, the Soviet airline.

“This is the first joint venture of this nature in the history of the relations between the United States and the Soviet Union,” Soviet Ambassador Yuly V. Dubinin noted. “It is an outstanding example of how the East and the West can work together for their mutual benefit and progress.”