In the west part of Russian capital will be built a hostel with 3 thousand places, reports Kommersant. Amtel Properties invests in the project 2.5 billion rubles ($32 million). The hotel could become the largest in Europe. At the moment, Generator Paris is by far the biggest hostel in the continent with 950 beds.
Amtel Properties plans to build the hostel on Ryabinovaya street in Mozhaisk, the administrative center of Mozhaysky district of Moscow, on the territory of 1.5 hectares. Currently, there are only four apartment houses on the street, while other buildings are industrial buildings, military units, and churches.
According to the representative of the Amtel Properties Anna Zavyalov, the company expects that growing domestic tourism and upcoming 2018 FIFA World Cup will contribute in demand for the new facility. Hostels are becoming more popular in Russia, reports consulting firm JLL. It also attracts investors as it requires less investment than opening a traditional hotel and the payback period is two times shorter.
For today, there are 300 hostels in Moscow with total 10 thousand beds, reports Vedomosti citing JLL. The new hostel, therefore, can take 23% of the market. Worth mentioning, that 75% of hostels in Moscow situate in residential buildings. Russian legislators are now working on a decree that could prohibit having hostels in residential buildings. This would give a comparative advantage to those hotels opened in separate buildingsю That is the case of the new project of the Amtel Properties.
Amtel Properties, a real estate development company, was founded by Russian businessman of Indian origin Sudhir Gupta. One of the co-owners of the company is the European Bank for Reconstruction and Development.
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