An Indian investor to construct Europe's largest hostel in Moscow

Amtel Properties intends to construct a hostel for 3,000 guests in Moscow.  Amtel Properties' project may become Europe's largest by capacity. Today, 950 beds' Generator in Paris and a 900 beds’ hostel in Berlin are considered to be the largest ones.

An Indian investor to construct Europe's largest hostel in Moscow

Amtel Properties intends to construct a hostel for 3,000 guests in Moscow. According to Anna Zavyalova, a representative of the company, Amtel Properties has acquired a land plot to construct the hostel with the first phase contemplating 1,000 beds. Due to actively developing domestic tourism and the forthcoming hockey and football world cups, a high quality hostel offering a range of services such as a car park, cafeteria, baggage room, etc. will obviously be of demand, Ms. Zavyalova noted.

Investment costs to be incurred to construct a hostel are a small fraction of the costs required to construct a full-featured hotel, thanks to construction and services related savings, while the payback period of such projects is twice shorter. That is why Amtel Properties' project may succeed owing to its scale. According to JLL, more than 300 hostels operate in Moscow today offering 10,000 beds in the aggregate, with 75% of the facilities being part of residential buildings. If the draft law forbidding hostels in residential buildings is enacted, stand-alone hostels will be at an advantage.

Amtel Properties' project may become Europe's largest by capacity. Today, 950 beds' Generator in Paris and a 900 beds’ hostel in Berlin are considered to be the largest ones. Moscow's largest hostels are Privet Hostel with 300 beds and Netizen Hostel with 254 beds.

Amtel Properties deals with the construction of commercial and residential properties in Russia, Georgia, Ukraine and Belarus Republic. The company's main owners are Sudkhir Gupta, a Russian entrepreneur of Indian origin, and his son. In 2013, the European Bank for Reconstruction and Development became a minority shareholder having contributed $50 million in the company's equity. Amtel Properties' portfolio features Iris Congress Hotel, Hilton Garden Inn Moscow New Riga, Orbita Business Center in Moscow, Pulkovskiye Visoty Multifunctional Complex in Saint-Petersburg and others.