View From Within: With a view of the Neva

Courtyard by Marriott St. Petersburg Vasilievsky has opened during a difficult economic situation. Nevertheless experts believe that the hotel has quite good prospects as there are not enough hotels combining business functions and opportunities for rest in the city.

Hotel Courtyard by Marriott St. Petersburg Vasilievsky, opened in October 2008, is a 7-storey building with a total area of 16,000 sq.m on Vasilevsky Island on the place of a small residential micro district constructed at the end of the 19th century. In the 1990s a governmental order for the construction of a hotel complex was received, and the buildings which at that time were in a desolate state of repair were chosen as the location. With the construction of the hotel the former appearance of the old buildings has been restored.

The owner of the hotel, Baltic Construction Company - 65 (BSK-65), started construction in 2001. Due to the fact that the owners of the company have changed several times, the realization of the project took seven years longer than expected. "The first deadline was planned for 2005-2006, and then it moved several times. After the completion of construction the building stood idle for about one and a half years. The facades had been constructed, the windows had been double-glazed, but the premises simply stood behind a fence," recollects Oleg Gromkov, head of market research at Knight Frank St. Petersburg. The contract with Marriott International to manage the hotel is for 20 years and was signed at the end of September this year. Courtyard by Marriott is positioned in the average price category and is focused first of all on business-tourists.

The volume of investments in the construction of the premises have not been disclosed. According to executive director of consulting firm Inter-Consult Sergey Kovalev, the volume of investments in such types of hotel as Courtyard by Marriott, can be $60,000-$80,000 per room; so with 214 rooms, roughly $12-$17 million. In this case, considering the necessity of reconstruction, the expenditures could have been double that, he adds.

The not central center

The hotel is located on the junction of the 2nd liniya and Maly prospekt of Vasilevsky Island. The facade of the hotel faces Makarova Naberezhnaya. And the windows of the most expensive rooms look out onto the Neva. Despite the hotel being a small distance from Nevsky prospekt, it is nevertheless in a historical part of the city.

The main sights of the city are located nearby: the Peter and Paul Fortress, the Bronze Horseman, the Hermitage, the Palace, Isaakievsky cathedral, Admiralty. In 10-15 minutes by car it is possible to reach the Marina and Lenexpo expocentre. "The affinity of the hotel to the port is convenient for visitors. It is more convenient for tourists coming to the city on cruise ships to stay a hotel in the same area. It will provide Courtyard by Marriott with customers," considers Nikolai Kazansky, director of the investment consulting department at Colliers International.

"Vasilevsky island is not the city center, but the hotel is near Tuchkovy bridge which connects this area with the Petrograd side. It is possible to reach the central area quickly enough," says Gromkov. In Kovalev’s opinion, the hotel which is not applying for 5-star status is not obliged to be located directly in the city center. "For example, US Courtyard by Marriott branded hotels are never built in the center," he continues.

Kovalev names the undeveloped infrastructure in the area as a disadvantage to the location: there are no good restaurants and cafes near the hotel. A possible minus may be large flow of automobiles around the hotel on Maly prospekt and on Naberezhnaya Makarova.

It is easiest to reach the hotel by metro. The nearest metro stations are Vasile-ostrovskaya and Sportivnaya, both 5-10 minutes walk. Without traffic jams, from Pulkovo it takes 30 minutes by car, and from Moskovsky station - 15 minutes. But "the complex transport conditions and the isolation of the hotel on the island in the period from spring till autumn because of the draw bridges are obstacles," warns Kovalev.

"there are only four bridges on Vasilevsky island. The situation will improve when the island will be connected to the Western Diameter,” says Kazansky.

In white and brown

The interiors of Courtyard by Marriott St. Petersburg Vasilievsky are in modern style by designer Emma Lastbon. For the small hall of the hotel white-black-brown have been chosen. The Pierrot French and Russian restaurant, the same. The restaurant seats 140, 20 of which are separated from the main hall and in this zone there is a warm orange tone. For visitors not staying in the hotel there is a separate entrance from the street.

In a hall there are three computers with access to the Internet, and small shops and the lobby bar. The lobby deviates from the general concept of simple and strict interior design with more luxury. There are red and gold walls, columns, white sofas, silver pouffes and orange carpet.

The interiors of the rooms are functional. Rooms are decorated in beige tones and the furniture is in brown wood. On the walls are pictures with views of Petersburg.

To stay and work

The hotel has 214 rooms on the 2nd-7th floors. Each room has high-speed internet access (for additional payment), a refrigerator, an iron and ironing board, mineral water, tea/coffee makng facilities, toiletries and TV. It is possible to receive a dressing gown and slippers on request. Services available include concierge, bureau de change, and parking.

There are four categories of rooms. There are 190 of the cheapest, de luxe, rooms which measure 28 sq.m. The cost varies from 4,999 rubles per night from November to the end of March and up to 11,500 rubles per night in June. Next in price is studios, of which there are 12 (40 sq.m). They cost from 7,100 rubles per night from November to the end of March and up to 13,100 rubles in June.

There are six junior and luxury suites. The windows of the 2-room suites face the shores of Malaya Neva. In the luxury suites there is a separate dressing room and a guest bathroom. The junior suite is 52 sq.m, and from November to the end of March costs 10,500 rubles, increasing to 16,500 rubles in June. A night in a luxury suite (60 sq.m) from November to the end of March costs 15,500 rubles, and the most expensive price in June is 24,100 rubles. Breakfast is not included in the prices of luxury suites and studios and is an additional 700 rubles. The hotel can provide non-smoking rooms and rooms for people with physical disabilities on request.

The business part of the hotel includes eight conference rooms measuring from 30 to 96 sq.m. Their capacities are from 15 to 100 people depending on the area of the premise and the purpose of the event (meeting, reception, banquet, etc). Events can also be held in the Atrium (170 sq.m) and has a capacity from 60 to 170 people. It costs 9,000-15,000 rubles for half a day and 12,000-20,000 rubles for the whole day. To rent the atrium costs 20,000 rubles for half a day and 25,000 rubles for a full day.

Argument about stars

The operator positions the hotel as a hotel for businessmen, which, according to representatives of the company, differentiates it from all categories of stars. In the opinion of experts, it is a typical 4-star hotel. According to Gromkov, 28 sq.m is a good area for a standard room of a 4-star hotel, which on average are 25-30 sq.m. The cost of the rooms is also characteristic for 4-star hotels - higher than the Pribaltiiskaya, but lower than Novotel, he adds. Nevertheless for the brand the price is overestimated. "4,999 rubles is very expensive for Marriott as a world brand. But for St. Petersburg prices for hotels it is quite comprehensible," considers Kovalev.

The hotel, in his opinion, will be in demand by business tourists - both foreign, and Russian. "St. Petersburg is developing as a center of business activity, the number of business-tourists is growing. Accordingly, demand for hotels where it is possible to both stay and hold a business meeting is growing. While there are not enough of such hotels, Courtyard by Marriott will be demanded," considers Sergei Korneyev, vice president of the Russian Tourist Industry Union. "Now in all large hotels there is infrastructure to hold various business events, but frequently they are more expensive than Courtyard by Marriott," says Kovalev.

Now leaders are holding events at Novotel, Renaissance St. Petersburg Baltic, and Nevsky Palace. There are practically no hotels on Vasilevsky island to compete with Courtyard by Marriott. Gromkov names the Pribaltisskaya, but “it has other characteristics," he adds. Courtyard by Marriott, in his opinion, will have a higher level as it was constructed more recently and to a greater degree corresponds to European standards. Kazansky recollects the Holiday Club hotel which opened in January 2008 which to strengthen its position has opened a SPA-center.

Courtyard by Marriott will be demanded by business-tourists which now prefer to stay in 5-star hotels, but that during the crisis will be forced to use cheaper hotels, predicts Kovalev. Now, according to his estimations, more than 60% of customers of the most expensive hotels are business tourists. Gromkov thinks that sportsmen may stay at the hotel. For example, in connection with the proximity to the Petrovsky stadium the hotel would be suitable for accommodating football teams.

Korneyev believes that the hotel will be demanded by foreign tourists familiar with the Marriott brand. The majority of Americans will be interested in the hotel. Tourists from the US know the brand well and will stay in a Marriott hotel despite the overestimated cost in their understanding, considers Kovalev. Americans prefer a familiar brand, and the majority currently prefer rooms in the Renaissance St. Petersburg Baltic hotel," agree Gromkov. "We expect demand to correspond to the average level of already opened 4-5-star hotels," the representative of the Marriott International press service Alexander Semyonov says. According to Gromkov, mid-year fillability of such level hotels as Courtyard by Marriott, is 70-75%.

Kazansky is assured that if mid-year fillability reaches 70%, this would be a good result for the hotel. "In St. Petersburg, there is currently a shortage of hotels, especially during high season. And if the operator can provide good fillability also during low season, it has good chances of commercial success," says Kazansky. Representatives of the operator consider the main competitors for the opened Courtyard by Marriott as Sokos Olympic Garden, Holiday Club, Angleterre and Novotel, all of which operate in the 4-star segment.