Abstract. It is shown that any compact semistable quotient of a normal variety by a complex reductive Lie group G (in the sense of Heinzner and Snow) is a good quotient. This reduces the investigation and classification of such complex-analytic quotients to the corresponding questions in the algebraic category. As a consequence of our main result, we show that every compact space in Nemirovski's class QG has a realisation as a good quotient, and that every complete algebraic variety in QG is unirational with finitely generated Cox ring and at worst rational singularities. In particular, every compact space in class QT , where T is an algebraic torus, is a toric variety.