baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Belarus Hotel Market
Hotel Market
OVERVIEW
2010 was characterized by activation of
developers and international hotel chains
with the construction of new hotels and
renovation of establishments currently
operating have been initiated.
The development of the hotel market has
been stimulated by the preparation to the
World Ice Hockey Championship in 2014. In
preparation for the event new sport objects
are under construction, transport
infrastructure is being upgraded and the
development of the hotel business is being
actively supported by the State.
In the Master plan of Minsk till 2030 that was
implemented in May, 2010, the section
“Development of Tourism” was included for
the first time. The section determines
development prospects of tourism in Minsk
city. The plan revealed that city aims to be
positioned as dynamic tourist centre with
ample opportunities for business, sport,
entertainment and other types of tourism.
The most assets in hotel sector are owned by
the State (by the Government or
municipalities) with less than half in private
hands. In total 150 (42 per cent) hotels of
359 are privately owned.
The hotel market of the Republic of Belarus
has a minimal presence of international
chains. As a rule, hotels are operated by a
specific company created by an owner or the
owner operates the business privately. Often,
this is a negative factor in the quality of
services provided as a private owner is
usually not a specialist in hotel operation. It is
also necessary to mention that Belarusian
hotels have weak integration with on-line
booking services and there is an absence of
a flexible price policy.
In this market, Crown Plaza Minsk can be
separately mentioned. The hotel is operated
by Princess Group under a 20-year
franchising agreement with the
InterContinental Hotels Group. Hyatt Regency
Minsk is currently under construction, on
completion will be operated directly by Hyatt
International. Another complex under
construction is a mixed-use building located
at Pobeditelej Ave. The hotel section of the
complex will be operated under one of the
brands of Rezidor Hotel Group.
SUPPLY AND NEW PROJECTS
The total bed spaces available in Belarus at
the beginning of 2011 added-up to 26,673.
The present capacity of Minsk hotels is
5,417 guests, which is insufficient during
large-scale events in Minsk. According to
estimates of the World Ice Hockey
Championship 2014 Minsk will be visited by
35,000 sports fans as well as sport teams,
representatives of IIHF, and journalists. Hotel
capacity needs to be increased considerably
to cater for an event of this size. In 2010 in
Minsk there were 28 hotels. Just 11 hotels
were certified with at least 2 - 5 stars. The
total capacity of these hotels is 1,620 rooms.
Existing ranked hotels
Source: Colliers International
Stars Name Address Rooms Operator
5-star Crowne Plaza Minsk Kirova St. 13 115 Princess Group (IHG)
5-star Europe Internacional'naja St. 28 67 Hotel Europe
4-star Victoria Pobeditelej Ave. 59 169 Biznes-centr Stolica
4-star Minsk Nezavisimosti Ave. 11 252 Hotel Minsk
3-star Dom Moskvy Kommunisticheskaja St. 86 14 Dom Moskvy
3-star Orbita Pushkina Ave. 39 210 Hotel complex Orbita
3-star Planeta Pobeditelej Ave. 31 306 Hotel Planeta
3-star Sputnik Brilevskaja St. 2 136 Minotel
3-star U Fontana Amuratorskaja St. 4 18 Hotel U Fontana
3-star Yubileiny Pobeditelej Ave. 19 239 Hotel comlex Yubileiny
2-star Zvezda Gazety Zvezda Ave. 47 94 Zvezda
Total 1,620
CONTACTS: ANDREY PAVLYSHKO - a.pavlyshko@colliers.by l ANDREY ALESHKIN - a.aleshkin@colliers.by
Colliers International | p. 92