'Modern hotel' magazine published comments of experts having experience in implementation of hotel projects

Guidelines for investors: how to build a hotel

 _.jpg'Modern hotel' 4 (110) September-October 2018

The hotel market attracts investors by its stability, however frightens by the complexity of project delivery. What is easier - build a new hotel or reconstruct an old building, what towns are suitable for it and what investments it will require.

Hoteliers think, the most promising locations for developing the hotel business are Moscow and St. Petersburg, which is determined by arising tourist flows.

It is the cities with strong tourist flows, where reconstruction of historic buildings to hotels is expedient.

To-date St.Petersburge is probably the leader among Russian cities, where new hotels appear in the old stock - not only in residential buildings, but also in commercial and industrial buildings. According toMaris|part of the CBRE affiliate network estimation, there opened44 new hotels of category 3–5* designed for 4.5 thousand rooms in St.Petersburgfrom January 2013 to July 2018(this does not include mini-hotels for up to 40 rooms), and 70% of them are located in reconstructed buildings. Colliers International give similar data, noting that for the last year and a half the percentage of such hotels among newly opened is almost 90%.

'41% of the whole room stock of St.Petersburg hotels is located in historic buildings reconstructed and adjusted for modern needs'.

'When refitting the building to suit modern requirements, generally, there are difficulties with arrangement of new service shafts, plantrooms, residential and process areas, ensuring structural stability of the building with joint operation of new and old structures. If the task is also to maintain the architectural look of the building having historical value, then it becomes far more complicated', - Dmitry Gorbik, chief project engineer of Metropolis commented.

However, when it comes to reconstruction of a historic building to a hotel, investors are ready to consider various options and look for solutions, even if they are expensive.

Screenshot_5.pngInvestments for implementation of a hotel project are determined by the anticipated number of rooms and the total area of the designed hotel. Experts note that the corelation of residential areas (room strock and corridors of the residential part) and other public areas and service part is determined by the hotel type (business hotel, congress hotel, recreation, mass tourism, mini-hotel etc.) and the hotel category (stars, diamonds, keys). For each hotel type and category there are optimum corelations of residential, service and public areas (restaurant, bar, cafe, conference centre, fitness centre, lobby, halls on floors, car parks, surrounding territory etc.).

Thus, specialists calculate the specific cost for construction of one room (as the main hotel unit generating income) or 1 sq.m of the total hotel area.

'Main costs in implementation of a hotel project relate to safety'.

Designing a hotel for a brand is an additional challenge for an architect and a designer. Experts note that difficulties occur, if there are discrepancies between the applicable Russian norms and the standards of a hotel operator that aim at optimizing and improving the functionality of spaces.