Source Pravda.Ru

Moscow's market of commercial and hotel real estate is worth $10bn

Experts estimate the potential volume of the Moscow market for commercialand hotel real estate at $10bn, said Interrors Deputy CEO SergeyAleksashenko in an interview with journalists. Interrors is dealing incommercial real estate and has begun expanding its activities to hotelbusiness. At the same time, in Aleksashenko's opinion, the market ofaccommodation services has not been established in Russia yet, and thecurrent hotel operators are "not capable of measuring up to standards".However, he believes that this sector has good outlooks and can attract newinvestments. Boris Averyanov, first deputy director of the foreign economic relationsdepartment of Moscow, said that the investment potential of the market ofthree-star hotels in Moscow is estimated at about $2bn until 2010. However,roughly the same amount of money may be required for the renovation ofMoscow hotels. The Moscow administration expects about 100 new hotels with200 rooms and valued at $20-30m each to be constructed by 2010. Accordingto the Moscow government, competent bodies are currently consideringpre-project documentation before granting regulatory approval for theconstruction of 29 hotels in the next three years. Averyanov also named theIntourist, Moskva, Rossiya, Ukraina, Pekin and other hotels among those inneed of refurbishment. He believes that each of these projects will cost$100-200m. The renovation of the Moskva hotel complex will require morethan $300m. According to Aleksashenko, Interros could be interested in thepossibility of renovating the Rossiya and other hotels from the listabove..