Published on : Wednesday, May 17, 2017
Quality economy class hotels are hard to find in Russia, as per a survey of hotel operators by RBTH. Vadim Prassov, Vice-President of the Russian Federation of Restaurant and Hotel Operators, said that the situation varies from city to city. In some places, mini-hotels are able to make up for 70% of the lack of good quality economy class hotels.
Those who are interested in opening economy class hotels in Moscow are the ones who suffer the most. New hotels built in Moscow cannot count on good locations or incentives of a financial nature or otherwise. Hence, only 20 out of the 200 Russian economy accommodation facilities are of good quality.
The main reason for this is due to the lofty cost from the beginning of undertaking such a project. The costs related with equipping a two star hotel and a five star hotel are practically the same due to the expenses connected with the construction site.
To quote Tamara Bouïolva, Vice-President in charge of public relations for the Association representing Saint Petersburg’s small hotels, “The reasons for the difficulties relating to the opening of economy class hotels are of an economic nature. In the case of large economy hotels (more than 50 rooms), located in the megacities, where land in the center and surrounding areas is expensive, construction at the city’s center is not an economically viable option.”
Hence, to tackle the problem of lack of good quality economy hotels, the hotel industry will require State support.