The budget hotels will be built in Moscow

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According to the Department of Coordination of Construction of the Hotels, it’s planning to build about 40 new budget hotels up to 2013. The hotels won’t be started from point zero, some city hostels will be just re-equipped.

“The program of the reconstruction of some hostels with the purpose to re-equip them into the hotels will be developed in Moscow in the nearest future. The guests of Moscow will be able to have a comfortable accommodation for a reasonable price. It will help to recommence the domestic tourism”, underlined Vladimir Ermolaev, the Head of the Department of Hotels Construction of Moscow. It’s planning to open 17 hotels in 2011 and more than 20 hotels in 2012 in the framework of this program.

According to the experts, there is a great necessity of budget accommodation in Moscow. The businessmen prefer to build 5 star hotels instead of budget 3 star ones. It can be explained by the low profitability. The hotel of the average category can be repaid only in 10-15 years. www.atorus.ru

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Author: Vassilis

Vassilis is the founder and Executive Editor of XeniosWorld, Greece's leading English-language travel trade media since 1997. With 30+ years in media and hospitality, he's worked with over 200 luxury hotels and resorts across Greece. A marketing graduate with postgraduate studies, Vasileios specializes in hotel digital marketing, direct booking strategies, and tourism industry innovation. His insights reach 45,000+ hospitality professionals globally. Based in the UK and Greece, he's passionate about helping hotels leverage technology and data-driven strategies to increase revenue and reduce OTA dependency.