Hotel in Volgograd - is not cheap!

click fraud protection

In 2010, the Administration of the Volgograd region proudly announced that in 2018 the region will host the football championship FIFA 2018 and on this basis in the tourist town of activated processes.The consequence of this news began appearing there, there is the statement that in Volgograd will be built a new hotel, not even one, or even ten.

To date, the city planned to build 16 hotels in the existing 41. The paradox is that the amount exceeds the lack of venues for the championship more than 3 times.From 7500 seats declared for the period of 6500 provide a valid hotel and in 1000 the remaining places can provide a maximum of 5 new hotels.

optimism of investors and builders inspires boom that will create around him the championship and they expect much more than the stated number of tourists, hoping to make it significantly and return of their funds.It should be noted that prior to the championship of the market for new hotels is uninteresting - the current flow of tourists and business trips available quantity is more than enough.Average occupancy rates in the city hovers around 30-40% per year.This means that the accommodation of 100 rooms with an average room cost 3000 rubles.unable to earn a possible 109.5 million. rubles.annual maximum of 27.5 million. rubles.Higher prices in the context of the ongoing crisis, the situation will not improve for the hotel, as a significant impact on occupancy rates.

What guided the modern investor, actively taking for work on the construction of a new hotel on the eve of the championship?The fact that the championship lasts for a month, and during it he was able to recoup their investments.To note, the construction of one of the new rooms at the 4 * cost 2.4 million rubles, while the rooms in the hotel 3 * 1.6 million.Imagine a new hotel with 150 rooms, 3 * in the city center.Undoubtedly, it will be a success and will be loaded on 90-95%.The average cost of a place in such a hotel is 3,500 rubles.($ 113).A potential investor, as it turns out in the course of simple arithmetic, the championship will earn a maximum of 12 million per month to live.Imagine also that the guests will also eat in the hotel and it will bring an additional 2.5 million.Such a high income should also reduce the amount of taxes, wages, fees, expenses, etc.However, even if earned in the past month to 14.5 million.Hotel recoup that cost investors 240 million. during the championship will not be possible.

Most of the initiators of the hotel projects the above situation well aware and rely on the fact that the prices for the period of the championship can be increased almost twice.But the events of the Beijing Olympics, the royal wedding in London has shown that it is utopian way.During the Royal Wedding the situation with hotels in London was similar to the situation in Volgograd: It is expected that the supply of services will significantly exceed demand, yet prices for most of the rooms have remained at the same high level, and some even have been raised.As a result, part of the visitors to the city due to the high price decided to break camp in the streets.A performance level of occupancy rates have dropped significantly during the week of the Royal Wedding.During the Olympic Games in 2008, much to the chagrin hoteliers capital for the Games came to a little more than half of the expected visitors.Because of this, tens of thousands of hotel rooms, which were raised prices, remained empty.Future hoteliers should be aware of the fact that many tourists are seeing a rise in prices for accommodation in hotels, just give up their reservations.

The conclusion is simple: to build a hotel just on the eve of the championship is extremely imprudent.However, if the investor plans to build a hotel for a long time and hard work on it, it should be ready for the following difficulties:

  • payback Hotel 3 * - 8-10 years, 4 * hotels - from 12 years and above, provided,that inflation is virtually zero;
  • in hotels 3 * and 4 * to save on unacceptable conditions, infrastructure and personnel - the cheapest sofa, a plastic tube and a manager without a higher education are not allowed to go and get the cherished categorization asterisk;
  • situation with the staff in the city is extremely deplorable - staffed with at least reception, customer service and English-speaking staff of the restaurant staff would be very expensive and would almost be impossible.In the context of increased demand for this type of staff will increase significantly and prices of it, and the quality, on the contrary, decreases;
  • demand will be no new hotels and hotels, proven in the market - if you have accumulated a loyal customer base to rely on a large load is not necessary;
  • market hotels in the city already divided - to win its own segment will only by a long and expensive advertising dempingovyh prices;
  • eyes guests will throw the big names.For example, for 2 years in Volgograd at the address.Trade union, will be built 13 Hampton by Hilton's group of companies "table".This fact sets the general vector of development of future hotel - Hilton is always preium-class and premium services, and they need to be able to compete, or to you simply will not go.

In conclusion, we note that the Volgograd region according to the latest research, one of the most unattractive investment regions for business.Hotel industry and does the same for today is an outsider.Before you think about it and build a hotel check with the marketer, can be more profitable and easier to put money on deposit at 10% per annum or build an office building with a payback period of 4-5 years?