3. Prospects for further development of the hotel complex in the capital

According to the General plan of development of the city of Moscow up to 2020 it is expected that the total number of temporary visitors in the city will increase up to 20 mln. peo­ple, many of whom will require accommodation in the hotel complex in the city. In order to attend demand of the future visitors for hotel accommodations it will be necessary to con­struct many new hotels, increasing significantly the number of hotel rooms offered in the city, thus causing decrease of the average accommodation rates in modern hotels, which are at­tending to all basic requirements of the accommodated guests.

With the purpose of achievement of the established objective in at­traction of private investors for con­struction of new and reconstruction of the existing hotels in the city, the Government of Moscow has adopted a number of measures stimulating investment activities in the segment of newly built and reconstructed ho­tels in the capital, including provision for Investors In construction/recon­struction of hotels of a number of significant preference. The adopted measures have increased investment attractiveness of the projects con­struction of new and reconstruction of the existing hotels, as well as di­minished the pay back periods of the Investment projects In the hotel com­plex In Moscow.

It Is necessary to notice that In Mos­cow allocation of an appropriate kind for new construction Is one of the most Important stages in realization of any Investment project in all segments of the Moscow real estate market, from which terms and conditions of realiza­tion depends in many ways creation of favorable conditions for investment activities of developers at the real es­tate market and attraction of private capitals for realization of investment projects In the Interests of develop­ment of the city of Moscow.

With this reference It is worth men­tioning that now Moscow City Govern­ment is appreciating a draft of a new General scheme of location of hotel in the city of Moscow for the period up to 2015. In the above-mentioned document will be Indicated appropri­ate land plots suitable for construction of new hotels In the city.

Further allocation of the land plots Indicated In the General scheme for new hotels construction via Investment auctions will In many ways determine the scale and growth rates of construc­tion In the hotel complex In the city for the next severed years.

For 2009, the drafted program of commissioning of new hotels In the dty of Moscow contains 32 hotels with the aggregated accommodation capac­ity for about 7 thou.

It is necessary to note that for the last years most of construction of new hotels In Moscow was carried out in the categories of 4* and 5 stars, lo­cated in the Central administrative dis- trid of the city. Therefore, for the next years it is expected that new land plots for hotel construction will be allocated at the territories distanced from the center of the dty, and private Inves­tors will have to construct hotels In less prestigious areas, somewhere outside of the Third Transport Ring or along the Moscow Circular Automobile Road (the MKAD).

Besides. It is expected that In build­ing new hotels in the areas distant from the dty centre the developers will be giving priority to construdlon of new economy class hotels, mainly of 2 or 3 stars, which share In the to­tal accommodation fund of the hotel complex In the capital till 2010 should increase significantly and should reach 67.5 % of the total.

Besides, a new perspective direction of investment activities in the hotel complex in the capital in recent years in Moscow was construction of mod­em apart -hotds that are destined for accommodation of temporary staying in the capital for longer periods than in the hotels (as a rule, for period long­er than one week). Apart-hotels unlike hotels have instead of rooms separate 1 or 2 room apartments each with a small kitchen equipped for cooking foods. In the rest, the service in the apart-hotel is the same, as well as in the normal hotel, and accommoda­tion costs, comfort and service level depends on the category classification of the hotel.