St.Petersburg small hotel market has great potential for growth

St. Petersburg offers tremendous hotel development and opportunities.
 
The city is the most historic city in the country and is known as one of the most popular tourism destinations in the world.  

The number of foreign guests visiting the city is growing approximately 10 percent annually.  
Local tourism officials and business analysts believe that even faster growth is limited only by the undeveloped tourism infrastructure, especially the inadequate number of quality, moderately priced, hotel rooms.  
 
Occupancy at both high-end and economy hotels is booming.

The fastest growing real estate sub-sector is the small hotel (approximately 20 rooms) category.  Investors, having no access to extensive international financing, focus their efforts on this sector and are quite successful.
 
Analysts believe that the small hotel market has great potential and expect continued growth in 2008-2010.

While the high-end sector is close to saturation, there is a considerable demand for mid-level hotel rooms.