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 | | MOSCOW HOTELS NEWS |
| 27 November 2007 |
Insufficient numbers in hotels, lead to a rise in prices
 According to the information of the committee on foreign-economic activities of Moscow, 203 hotels operated inside the capital city at the beginning of 2007. In the middle of 2007, 71 hotels were constructed. More than five of them were planned to be opened in 2007.
However, according to experts, it is too early to make optimistic forecasts. Marina Kharlamov is a leading analyst of the consulting department of GVA Sawyer. According to her, at the end of the 2007 third quarter, the total volume of the hotel offer consisted of 36 900 numbers against 45 600 numbers that were planned under the program.
Reason - many hotels are instituted with delays. Ritz Carlton hotel ("5- star") opened with a delay. It was opened in July 2007 instead of in March as was promised. It is being postponed at least for the next year and an exit into the capital market of international network Hilton Hotels. Hilton Moscow Leningradskaya (former "Leningrad" hotel at Komsomol square) will in no way finish reconstruction, after which the numerical fund of the hotel will decrease from 329 to 275 numbers.
Even the "Nikitsky assembly" minihotel (B.Nikitskaya Street, 29 numbers, the developer is "Stable line") should have been opened at the end of 2006. However, the ceremonial activity was postponed to the end of 2007. According to the company, this was postponed because of the originating problems related to the connection of the facility to city networks.
Michel Stalport, the regional vice-president of Rezidor Hotels Group in Russia, CIS countries, Baltics and Turkey, says that the basic problems for the Moscow developers consists of getting the necessary building licences on hotels and the agreement for linking up communications to them.
Insufficient numbers lead to a rise in prices. At the end of the third quarter, the average cost of a standard number in Moscow was 341 dollars a day for "4 and 5-star" hotels and 185 dollars for "3-star" hotels.
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