This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

Expensive long-term

How to Sell Hyattas

Expensive long-term

It seems that the guests of the Eastern Forum, which will be held in Vladivostok in August 2015, will not be destined to enjoy luxury in the suites of the five-star "Hyatt" - the hotels are not yet completed and are unlikely to be ready for the forum. About the prospects for the construction of five-star hotels in Primorye, money from the regional budget that may never return there, and whether the city needs high-class hotels - in the material from EastRussia.

The hotel is on billions

The construction of two "Hyatt" - on Cape Burny and on Vladivostok's Korabelnaya embankment - began during preparations for the APEC-2012 summit, but has not yet been completed. It seems that they will not be completed in time for another big event for Primorye - the Eastern Forum, which will be held in Vladivostok in August 2015. The representative of the Administration of the Primorsky Territory in the comments to EastRussia said that the regional authorities do not connect the holding of the forum and the completion of the Hyatt - they are planned to be commissioned only at the end of 2015.

Design errors have been reported and hotel prices have increased steadily. Last year, the Primorye Chamber of Control and Accounts announced that the contractor, the construction company IC Primorye, had not reported for an advance of 4,8 billion rubles. After this, the contractor was suspended for his work. The new general contractor is the Unified Directorate for the Construction of Facilities in the Primorsky Territory.

In recent years, the regional parliamentarians have several times approved the decision of the developer OJSC "Our House - Primorye" to take another loan to complete the construction, a total of 8,5 billion rubles were allocated for this purpose. In February, the regional Legislative Assembly again approved allocations in the form of budgetary investments in the authorized capital of Our Home - Primorye in the amount of 1,4 billion rubles for the completion of a hotel on Korabelnaya embankment. At the meeting, the first vice-governor of Primorye Vasily Usoltsev stressed that the regional leadership had made a decision to complete the Hyatt on Korabelnaya embankment, sell it and thereby return the funds spent from the budget in full.

As for the second hotel at Cape Burny, the question of its construction in parliament is not raised. According to the regional authorities, it is ready for about 80%, although in the construction schedule on the contractor’s site, commissioning and commissioning are planned for another 2013 year.

Deputy of the Legislative Assembly of Primorye, Deputy Chairman of the Committee on Fiscal Policy and Financial Resources Vladimir Bespalov told EastRussia a short history of financing "Hyatt" on Korabelnaya Embankment.

“Last year, it was decided to give a state guarantee for 1,4 billion rubles for completion, so that in 2014 the facility could be put into operation. But we were faced with the fact that guarantees turned into real money and the region paid off the loan in order to finish building at least one hotel. With an estimated cost of 7,5 billion rubles, 14,5 billion have already been spent, and another 1,4 billion rubles have been allocated for the completion of one hotel, ”says Bespalov.

Bespalov is sure that the Accounts Chamber should figure out where the money went. “We were told that the project was changed. They said that Hyatt needed a different quality. But then the developer has to negotiate with the company. It was and is a dubious deal, a commercial project. Why is the regional budget spending money on commercial construction? ”Bespalov notes.

The question of returning the money spent to the budget for the interlocutor is also controversial. “I do not see the scheme yet, when the money will be returned and how much will be returned. No guarantees and documents are shown. In the light of the events taking place in the Far East, it is time for the Investigative Committee of Russia to sort out this situation. Now there is not enough money to maintain the level of pensions, but here billions are leaving, ”says Bespalov.

Who will buy the Hyatt?

Opinions differ as to whether someone will buy the hotel. As the parliamentarian Galust Hakhoyan stated, when the object is commissioned, it will have a market price. “There will certainly be people who want to buy a hotel. The opening of the free port of Vladivostok is coming, and the five-star hotel may become the city's hallmark. Both businessmen and tourists will be able to stay there. This will play an important role in the development of the city and the region, ”said the deputy.

As Director of the Far Eastern Center for Economic Development and Integration of Russia into the Asia-Pacific Region of FEFU Alexander Abramov told EastRussia, due to the fact that the ruble has devalued and the balance in this matter has been found, it is time to buy.

“Those who have money will buy the Hyatt. The region will need hotels of this class in the near future - the project of the Primorye gambling zone has not yet been closed. Plus, tourism is developing in the region: last year about 2 million people crossed the border with China, says Abramov. - Hotels and hotels are needed, because in the future there will be an even greater increase in tourist traffic. In addition, the fact of the creation of a free port of Vladivostok allows us to expect an increase in the number of visitors next year. "

The director of the Institute of International Business and Economics of VSUES, Professor Alexander Latkin is of a different opinion. He believes that the situation with the Hyatt has developed into a stalemate: “We have brought matters to such a state where it is impossible to do otherwise - we need to constantly pour in money from the regional budget, we need to finish building. And no one has found real buyers for the hotel yet ”.

According to the professor, now there is a huge risk of losing funds invested from the budget.

“If there was now a specific agreement, an agreement that such and such a company buys a hotel, then all of us would be calmer. But there is no such agreement, and it turns out that the money seems to have flown away somewhere. In general, even before the summit, it was necessary to plan and think about whether this construction was needed. Now the governor needs to figure it out, because the money spent is our taxes, and it's not a fact that even if Hyatt is sold, it will return to the budget, ”Latkin says.

The professor believes that the city does not need hotels of this level, especially since now the occupancy rate of the existing ones is not very high. “In addition, the opening AZIMUT and the current Hyundai can compete with Hyatt. And in general, there are a lot of hotels in the city. All this had to be taken into account even when working out the business plan, before the start of construction, ”the interlocutor is sure.

Why Primorye five-star hotels?

Meanwhile, in Vladivostok, the first in the Far East smart-hotel "AZIMUT Hotel Vladivostok" is being prepared for opening. It is planned that it will receive its first guests in May. Despite the challenging economic environment and high competition in the market, management is looking forward to high occupancy rates.

“The decision to reconstruct was made, as all AzimutHotelCompany hotels must have a certain level of service. It is necessary that the guest, in whatever city he is staying, does not feel the difference between the level of rooms and the quality of service, ”says the head of the hotel's sales department Lidiya Taraskova.

The hotel is a 4-star hotel, however the management is going to apply for XNUMX stars. After the renovation, prices are expected to rise and approach Hyundai's.

“Our halls are designed for holding press conferences, forums, summits. We hope to host the guests of the Pacific Meridian festival in September and work closely with the Primorye administration. The tourism and business market in the region is developing, and many foreign guests come here. Taking into account that the opening of the hotel falls on the beginning of the season, we expect 70% occupancy, ”notes Taraskova.

According to her, the hotel rooms are already being booked, and applications from guests from South Korea, Indonesia and China are being received. At the same time, the upcoming opening of "Hyatt" and the need for this kind of hotels in the region raises doubts in the interlocutor.

“Few people believe that the Hyatt will open soon. In addition, hotels of this class are being built for events of a certain level, but at the same time they need additional infrastructure, sites that are not in the city. Opens - let's see what happens next. But we do not consider Hyatt as competitors, these are hotels of a different class - five-star. Rather, they can compete with Hyundai. This hotel and FEFU are now the main venues for federal events. And since the number of rooms in the city is small, especially with regard to luxury rooms, which leads to competition, the opening of Hyatt would regulate the pricing policy and reduce the cost of suites, ”Taraskova is sure.

January 26: current information on coronavirus in the Far East
Digest of regional events and latest statistics