As reported on the website of the Moscow construction complex, Vladimir Ermolaev (Head of the Department of Coordination of Hotels Construction - Urban Construction Department) stated that they plan to build about 40 hotels in the capital by 2013. Hotels will not be built "from scratch", instead dormitories will be modified.
"In the near future, Moscow will undertake a program of reconstruction of dormitories in order to further modify them into hotels and apartment buildings, so that guests of Moscow can stay there in comfort and get value for money. This will allow domestic outbound tourism to resume," said Vladimir Ermolaev. As part of the program, in Moscow in 2011 they plan to open 17 hotels for more than four thousand people, and in 2012, they plan to introduce more than 20 hotels with rooms for in excess of six thousand people.
According to Vladimir Ermolaev, the master plan for Moscow to 2025 is to construct more than 300 hotels. The locations have been detailed and documentation is being prepared. "Of these 300, about 50 will be sold at land auctions to be held in the near future," - V. Ermolaev said.
The first trial property is already there - a new three-star hotel on the Aminyevskoe highway, previously an old hostel for workers of a Moscow construction enterprise. According to the General Director of the hotel, Maxim Hodos, the location of the hotel is not the best: it is located among the block of existing buildings. The problem is planned to be solved by building a separate driveway to the hotel from Aminyevskoe highway.
According to experts, Moscow does not have enough budget accommodation at the moment. While businessmen undertake construction of five-star hotels, "three-star hotels" are almost non-existent. The reason is low profitability. An average category hotel, taking into account the cost of its construction and long-term approvals with state and municipal authorities, will take 10-15 years to show a return. Accommodation in budget hostels in the capital, according to market experts, is also insufficient. "Given the current situation, Moscow needs at least 6,900 spaces of budget accommodation. However, we must not forget that with the growth of incoming tourism, the need for accommodation will grow as well,"- said Daniel Mishin, a member of the board of the non-profit partnership "Union of Hostels".