baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Belarus Hotel Market
Belarus (000s)
Visitors (000s)
Guests (000s)
Arrivals of foreign
tourists to the Republic
of Belarus
Source: National Statistics Committee of the
Republic of Belarus
140
120
100
80
60
40
20
0
2005 2006 2007 2008 2009 2010
Dynamics of guests in
hotels
Source: National Statistics Committee of the
Republic of Belarus
1,800
1,600
1,400
1,200
1,000
800
600
410
400
390
380
370
360
350
400
340
2005 2006 2007 2008 2009 2010
Minsk Belarus
Dynamics and distribution
of guests in Minsk hotels
Source: National Statistics Committee of the
Republic of Belarus
400
350
300
250
200
150
100
50
0
2005 2006 2007 2008 2009 2010
Foreigners Local
Minsk (000s)
There has not been any hotel construction in
Minsk in 2009 - 2010. The newest hotel in
Minsk is 5-star Crowne Plaza Minsk a
reconstruction of the Svislotch hotel built in
1947. In 1999 an investor from Turkey won
the tender to redevelop Svislotch. Initially, the
opening of the redeveloped hotel was
announced for 2005 although the hotel was
only put into operation in 2008.
During 2010 the hotel real estate sector was
very active. Foreign and local investors and
developers announced a number of new
projects with the improving global economic
outlook and the potential of the undeveloped
hotel market in Belarus.
State operators are focused mainly on
renovation of existing hotels with subsequent
certification as 2 - 3-stars hotels. Three new
projects were commenced in 2010 in the
historical centre of Minsk, two 3-star hotels
with 70 and 27 rooms respectively and one
4-star hotel with 49 rooms. The latter is built
on the foundation of an old monastery
building. In 2011 a new boutique hotel has
been planned on the site of an old brewery
building situated outside the city centre.
2011 will see the commencement of largescale
reconstruction projects of State-owned
hotels. The 21-storey Hotel Belarus with 521
rooms is a symbol of Minsk will be renovated
and two more stories will be added. The
hotel complex formerly known as
“Oktjabrjskij” is currently under
reconstruction due to be opened in 2012
under name “President Hotel”. Project
financing was realized by of Turkish bank
“Turk Eximbank” where (51 million USD) was
attracted. It was also announced that 45
million EUR will be granted by Polish bank
“Bank Gospodarstwa Krajowego” to fund the
second phase of the 4-star ‘Hotel Victoria’
with 300 rooms.
The 5-star Hyatt Hotel (243 rooms) and
4-star Radisson (256 rooms) are presently
under construction, financed by BPS-Bank
(Russia)/ Belinvestbank (Belarus) and by the
Bank of Moscow, respectively. Iranian
company Kayson started construction of a
mixed-use complex “Magnet Minsk” in 2010
and it has been indicated that the project will
include a 5-star hotel. The operator of the
hotel is not defined yet.
Construction is also planned to start on
5-star Kempinski Hotel at Independence
Avenue, the main highway of Minsk.
A number of other projects are also in the
planning stage. A number of European,
Middle Eastern and Asian investors have
Projects Completed in Minsk in 2007 - 2008
*under franchise of Intercontinental Hotels Group
Source: Colliers International
Stars Name Address Rooms Operator
5-star Europe Internacional'naja St. 28 67 Hotel Europe
4-star Victoria Pobeditelej Ave., 59 169 Stolica
5-star Crowne Plaza Kirova St. 13 115 Princess Group*
Total 351
New hotel projects planned for 2012 - 2014
Source: Colliers International
Expected Expected
Completion Stars
Name Rooms Status Operator
2012 5-star President Hotel 144 Under Construction Hotel Minsk
2012 3-star Garni 70 Under Reconstruction Minotel
2012 3-star No Name 27 Under Construction n/a
2012 4-star No Name 49 Under Construction Minotel
2013 5-star Hyatt Regency 243 Under Construction Hyatt
2013 4-star No Name 256 Under Construction Rezidor
2013 5-star Kempinski 356 In Planning Kempinski
2013 4-star Magnet Minsk 330 Under Construction n/a
2013 4-star Tivali 190 Under Construction n/a
2013 4-star Victoria (2nd stage) 300 In Planning Stolica
2014 4-star Mozer 220 In Planning Vienna Int.
2014 3-star No Name 120 In Planning n/a
2014 4-star Brovar 150 In Planning Stolica
2014 5-star Persipolis 250 In Planning n/a
Total 2,705
CONTACTS: ANDREY PAVLYSHKO - a.pavlyshko@colliers.by l ANDREY ALESHKIN - a.aleshkin@colliers.by
Colliers International | p. 93