Whether it is necessary to reconstruct old hotels

Most of the hotels in Ukraine is still the old hotels that were created during perestroika the Soviet era. Gradually these objects are placed in the renovation and conversion, however, the most successful, which is located in Kiev city centre, while the hotel, located on the outskirts of the city attract attention only by individual enthusiasts from the scope of hotel investments.

Soviet hotels are a real goldmine for investors. At least against the number. Today the main part of the hotel, as before, is represented in the format of placing Soviet targets. It would seem that this area is a Paradise for investment. However, this view is false. Almost all of the Soviet format was obsolete from the point of view of structural characteristics: they have rooms small area, the common areas are implemented is extremely inefficient, and this makes the process of improving the efficiency of hotels is very difficult. That is why, most of these hotels remains in its legacy state, bringing their owners much less profit than it could with proper organization, while investors do not risk to invest in them.

However, among development companies and operators of Gostinichnaya, there are those who take the reconstruction into their own hands, risking much. However, according to experts, to carry out re-conception is appropriate only for those objects which are located in the Central, historical or touristic parts of the city, as there is traditionally high activity of tourists, which brings investors considerable profit.

Very often the location of the hotel allowed you to turn it from old Soviet-type building in a five-star facility premium. However, such hotels are found on the market very rarely, because the Soviet to bring the object up to the standards of modern hotels carries a cost exceeding the construction of a new hotel.

Five star hotels are a special segment of the market, the development of which passes through a separate category of laws of hospitality. Going down several levels below, one can observe that the examples of the redevelopment of the hotels of the Soviet type. Even in Kiev, you can enumerate a very large number, considering that their conduct was carried out for different periods of time. The greatest movement of this type takes place in relation to the hotels, 3-4 stars. The most cost-effective is the reconstruction of three-star hotels, because they impose the least stringent requirements. In this case, the project pays much less for a considerable period of time, and is more cost-effective than carrying out works on the construction of a new facility.

For investors who plan to engage in the reconstruction of such an object it is important to understand that this business is not easy, and definitely requires much experience and money. Of carry a higher rate of investment relative to the sphere of commercial real estate, and pay off over the long term. According to experts of company “sotsmart”, in order to reduce the costs to a minimum, the object can not be shut for rebuilding, and to carry out repair work gradually, over several years. Remodeling of the hotel, which is in the category of “3-4 stars” there is the possibility of using this option. In turn, designing five-star hotels, it is necessary to close the object completely, because of higher classes are not able to allow customers felt the inconvenience from the renovations.

In addition, one of the main problems of developers in this case is the right choice of hotel. The reason for this is the fact that not every facility, construction of which was carried out in Soviet times, may be affected by the reconstruction, while observing the requirements of safety and comfort for the reason that in the 50-60-ies of the construction companies have not even thought about those things, without which it just seems none of the other hotels belonging to the luxury class. For example, in such buildings have not provided the service elevators, careful zoning of spaces, the separation of service and guest threads. In addition, assessing the status of all communication remains to be desired.

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