According  to analytical data published  in December 07, the hotel business in the capital failed to face the needs of ordinary clients in 2007. It remains focused on wealthy guests and the room prices have grown another 10-15 per cent. As before, hotel rooms remain in short supply. According to analytical evaluation data offered by Real estate indicators Center the tourist inflow to Moscow this year has raised the hotel accommodation prices by 10-15 per cent.   Analysts of  JLL Hotels have  calculated the room cost increase for the last year as 16,3 per cent from 293  to  341 euro. And they expect the 2008 price growth to be comparable to that in the past year. 

The hotel price increase is triggered by   the accommodation shortage.   According to statistics, there are 203 hotels in Moscow today with a total of 40 300 rooms for 68 400 guests. However, 60 per cent have 4 or 5 stars. The most popular medium price hotels constitute only 40 per cent and their number is constantly thinning. Last year the Ukraine with over 1000 rooms was closed for restructuring. Others, like Moscow, Minsk, Leningradskaya, Sovetskaya fell out of the ranks even earlier. The next on the renewal list are Peking and Centralnaya. And in most cases after the renewal the hotels become more expensive. In Moscow there are fewer budget class hotels then de luxe ones, says Konstantin Aprelev, Vice-Chairman of the Russian Realtors Guild, since the land value and the hotel running costs being more or less equal,  a 5 star hotel certainly gets more  income. For the same reason investors opt for office business rather than for  hotels where the lower costs are offset by  longer pay-back periods.