The Government will legalize hostels and mini-hotels

The Ministry for Culture arranged a federal law “About introduction of amendments to Civil Code”, which provides introduction of amendments to enactments 288 and 799 of Civil Code of the Russian Federation for simplification of hostels and mini-hotels work.

There is provided to allow homeowners to re-equip real estate into hotels with not exceeding 50 rooms without registration as nonresidential property. The Ministry for Culture accentuates these innovations designed to cut shadow transaction processing by companies which provide services on hot-bedding of tourists.
Hostels and mini-hotels are rather new format of hotel-services for Russia. These organizations usually don’t need solid investment, and give net profit margin about 20-40% in a season.

In the estimation of specialists at the present time there are 350 function hostels in Russia. This service is the most popular in metropolises like Saint-Petersburg (129 hostels) and Moscow (121 hostels).

Indication only: The Information agency Credinform affords possibility to evaluate the loyalty of listed hostels and mini-hotels and other Russian enterprises as far by independent Solvency Index GLOBAS-i ®. The independent statistic of loan offices is made ready and will allow evaluating the risks of collaboration with a bank.