National Villages and Resorts

Project offer

The investment project implies creation and construction of a national hotel chain of cottage settlements (ethnographic villages) "National Villages Resort" that corresponds to its European analogs (3-4****) by its level of comfort and technical equipment, and at the same time has an excellent national Russian atmosphere.

Cottage settlements will be located in picturesque parts of Russia in Moscow suburbs, Pskov, Volgogda, Novgorod regions, on Baikal lake, in Krasnaya Polyana (Krasnodarsky region), on Altaj, and also in the unique climate of Karelsky isthmus (Leningrad region). All cottages will be located in the woods on river banks and lake coasts. Every object of the chain will correspond to unified standards.

The main target groups of this chain's consumers will be:

• Foreign and Russian tourists interested at historical, cultural and natural values of Russia;
• Individual tourists that prefer outdoor recreation (fishing in summer, skiing in winter, etc.);
• Families that spend their weekends and holidays in comfortable conditions outdoors (central cities residents);
• Wealthy people ready to spend a long time in the country, especially in summer;
• Corporate clients.

A typical cottage settlement occupies about 1,5 (one and a half) hectares of land and consists of 15-20 cottages and one administrative building. The square of every cottage is 100-120 square meters and will be divided into two separate blocks with individual entrances. Thus, every cottage can accommodate two families simultaneously. A typical block consists of a lobby, a hall, a dining room with a kitchen, a bathroom, a sleeping-room. Also in the settlement there will be an administrative building with a reception, a restaurant, a cafe, a shop, and everything that is necessary for providing services to people staying in the village.

At this moment a search of land for construction the described villages is being in process, grounds have been purchased in Moscow region, and also grounds are being acquired in Pskov, Vologda, and Leningrad regions. The project has a considerable support of local administration.

The volume of investment for a 14-cottage village is proposed to be on the level of 600 thousand US dollars:

• Cost of land rights;
• Technical equipment;
• Construction of cottages;
• Construction of building for administration.

A living price in one block is proposed to be from 50 to 70 US dollars a day. An average year's occupancy rate will be at the level of 60%. Average expenses for maintenance of one occupied block per day will be about 20 US dollars. Thus, the villages can create about 185 thousand US dollars income a year, an additional income about 100 thousand US dollars can be obtained from the restaurant/cafe, equipment rent, and other services.

Financial characteristics of the project:

• Internal Rate of Return;
• Payback Period;
• Net Present Value.

The project is being maintained and promoted by the following organizations:

• Russian Union of Travel Industry Enterprises (RUTI);
• Groups of regional holdings, tour operators.

Contacts:
Interregional Investment Assistance Center
Tel/fax +7 812 3134913, e-mail: iiac@omnisp.ru