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MOSCOW HOTELS NEWS

29 August 2008	Moscow has the highest growth of price rates in the hotel market Over the past four years among 28 European cities, Moscow experienced the highest growth of price rates in the hotel market, having conceded to Istanbul just last year. This situation reflects the low level of competition in the hotel business in Moscow. Presently, there are 219 hotels operating in Moscow and 12 of them are five star hotels. Only three hotels were opened in the first half of 2008. They are four star hotels: "Hilton Moscow Leningrad" and "Aerostar" located at Leningradsky Prospekt, as well as a three star hotel "Ahotnik" located at Golovinsky highway. There are plans to commission 20 additional hotels with 3258 rooms in the second half of 2008. Nevertheless, over the past six years of reconstructing the hotel fund of the capital city, the number of rooms in closed hotels exceeded the number of rooms in recently opened hotels by almost 3 thousand rooms. A critical situation could be expected in 2009-2010 because large amount of construction of hotels in Moscow has been planned to be executed during these years. There should be a construction of 348 hotels with 75 thousand rooms in the capital city. If all the plans are realised, then by 2011 the total number of funds in Moscow should increase almost 2.5 times, which means achieving 114 thousand rooms.
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