Moscow Hotels Make Big Profits

We know that Moscow's becoming an expensive place to stay, but here's one of the reasons: hoteliers are making the largest profits in Europe.

A recent survey by the TRI Hospitality Consulting group has revealed that hotels in Moscow are making a considerably higher profit than hotels in any other part of Europe, including western Europe. They say that in the first half of this year, the "pure profit" made on the average hotel room in Moscow was 5,225 roubles (over US$200); the second highest figure came from London with about $150 per room.

They say the reasons for the massive profit-making in Moscow hotels are a high demand, a shortage of quality hotels and the increasingly large gap between the rich and the poor in Russia; after all, Moscow is becoming known as the city of billionaires - you just have to look at the new Moscow Ritz-Carlton Hotel to see that. And wages for many jobs are still low; Moscow hotels pay out about 20% of their revenue on salaries, whereas it's nearly 40% in Paris.

What does all the mean for you, the traveler? Well, save up extra roubles if you plan to stay long in Moscow, or find a good homestay. Budget hotels are still few and far between. One last suggestion is to make friends with one of Moscow's 35 billionaires (or perhaps even one of the numerous millionaires) - there are so many now, it can't be hard to find one.