Sale of Stake in Private Hotel in Island District in St.Petersburg

The hotel occupies a two-floor building with a total area of 1,375 sq m in St. Petersburg. The property owners are selling a stake in the project.

It is situated in the prestigious district of Vasilevsky Island, in close proximity to the passenger port and the LenEXPO complex.

Project: Remodeling and redecoration of the hotel is needed, according to our project. The hotel will start operation within 6 to 8 months of receiving the entire amount of investment.

Description of the facilities:
The hotel has 27 rooms for two-three people of varying categories. At the ground floor there is a cafe with 30 seats with a separate entrance. At the second floor there is a conference room, as well as a sauna with a pool, laundry room and a beauty salon.

The hotel is expected to receive a 3-star certificate, which will give it a competitive advantage plus promotion on the website of the federal executive authority in charge of tourism.

Competitors:
The pricing of the hotel will be based on current market prices, which are 2,000 rubles for a 2-bed standard room in the low season. This is considerably lower than our competitors’ rates and will allow to further increase the volume of sales, as well as to ensure high occupancy during the low season.

Market situation:
There is strong demand for hotel services in St. Petersburg. As a result, this sector is enjoying high growth.
Because of this there are not enough rooms in hotels at affordable prices, especially in the peak season.

In the last three to four years many mini-hotels have opened in the city. These mini-hotels are located mainly in residential buildings, on the second and higher floors, without separate entrances. They attract individual tourists or travelers on business trips. Their capacity is usually 6 to 12 beds and are unable to host groups of 25-30 tourists. About 60% of these hotels do not have the official status of hotels, which greatly complicates their operation on the market for tourist services.