On October 30, two big Ukrainian developers joined forces with the global hotel operator Rezidor Hotel Group to sign an agreement over construction of a major new hotel complex in Yalta. The Ukrainian developers behind the deal, Nedvizhimost Stolitsy (NEST) and its partner Double W, stated that they are planning to launch this new landmark tourist attraction within three years.
World class hotel for Crimea
Construction work at the site of the future Radisson Paradise Resort Big Yalta complex is already underway and actually began two months ago. The people behind this ambitious new project plan to complete the first stage of the complex by June 2009, with the second stage set to be launched in May 2010.
According to preliminary plans, the first element of the complex to be completed will be a four-star hotel. It will occupy a total of 22,000 square metres and will include 280 suites, two restaurants, bars, café with a terrace, spa complex, open air and covered swimming pools, bowling alley, billiards, conference centre, cinema, private beach and yacht mooring facility.
A second, slightly more exclusive four-star hotel will take up a further area in 16 thousand square metres and contain 220 suites along with parking for 200 cars. The project is set to be based on plans drawn up by American and English architects.
Total investment in the project is expected to reach USD 200 million, according to figures provided by NEST. This initial investment will be equally shared between the two Ukrainian owners and is expected to be repaid in five-seven years.
Choosing the right partner
Rezidor Group were chosen as operator for the new complex as a result of their global track record and commitment to developing their range of hotels in Ukraine. “From our point of view, Rezidor Group is the most dynamic operator,” Serhiy Ovchinikov of NEST commented.
Rezidor currently operates almost 300 hotels globally under brands such as Radisson SAS, Country Inn, Missoni, Park Inn and Regent in a total of 47 countries. It was the first international operator to enter the Ukrainian market with the four-star Radisson SAS Hotel Kiev, which opened to the public in 2005.
The Group will also manage the Radisson Airport Hotel Kyiv on the Kyiv-Boryspil highway, with completion expected by the end of 2009. The Radisson Paradise Resort is expected to be one of the biggest pf Rezidor’s projects in Europe, commented Rezidor Group vice-president Arild Hovland.
Tapping into Crimea’s potential
Crimea was one of the most popular tourist destinations throughout the Soviet era for citizens of the USSR, but poor infrastructure and rising prices have led to the peninsula losing its grip on the regional holiday market in recent years, with many locals choosing Turkey and Egypt over the more pedestrian and dated charms of the former Soviet hotspot.
Crimean officials estimate that there are currently around 100 hotels operating in Crimea, although most of these are of a relatively low standard or are small scale operations which can accommodate few guests. The giant Intourist Yalta Hotel is currently the most famous hotel in Crimea, but despite repeated renovation works it remains far short of international standards. This lack of internationally-recognised quality accommodation has prevented Crimea from establishing the kind of global tourist clout that the peninsula’s many natural and manmade attractions would appear to warrant, but with an internationally renowned brand like Radisson now entering the market, Crimea’s appeal is likely to rise.
