PRESS RELEASE

Saint Petersburg, Russia Hotel Infrastructure Continues To Improve

Three new 4 star hotels to open by the end of spring. Travelers to this city recently had slim pickings with their hotel choices. A hotel boom has been underway.

In early 2002, Philadelphia area entrepreneur Ed Ryder saw an opportunity in Saint Petersburg, Russia. A major celebration was planned for the city's 300 year birthday in May 2003, and Ryder figured that the enormous resources being poured into revitalizing the city would be a boon to the tourism industry. He set about starting a tourist guide service, Russian Guide Network, Inc., to help English-speaking visitors make the most of their time in the city. As a part of launching this service, Ryder decided to visit every hotel in Saint Petersburg and write reviews, because this type of information was not available and he thought posting the reviews on his website ( www.RussianGuideNetwork.com ) would help him sell his new service.

Ryder visited the hotels in January through March 2002 and he could only find about 100, which included hostels. Many of the hotels were "crappy" according to Ryder and many had the soviet approach to hospitality. And comfortable, western standard hotels were scarce and expensive.

Two years later, In January 2004, Ryder returned and was shocked by the changes that had taken place. Aside from vast economic progress that could be seen on the streets, with the openings of many new restaurants, cafes, shops, supermarkets and even new shopping malls, Ryder realized that a hotel boom had been underway, something he knew the city had sorely needed.

One of the biggest changes Ryder noticed was that many people had suddenly realized there was money to be made in the hotel business, and many boutique hotels had opened, often with less than 10 rooms. And another thing Ryder saw was that the hotels had customers in winter time. Previously, with his 2002 hotel inspections, Ryder saw that barely anybody was staying at the hotels in winter. But now with the improved economy, business travelers were now coming to the city. And, Ryder surmises, this is one of the elements that has made it possible for new, more substantial hotels to enter the market.

"Back in winter 2002, one night I was outside of the Pribaltiskaya Hotel, the city's largest with 1200 rooms. I had been inside moments before and saw not a single customer anywhere. The hotel staff had nothing to do. The numerous restaurants inside the hotel were empty. I looked at the building from outside and saw just one room light on. I bet they had less than 5 guests that night. I recall visiting the Sputnik Hotel in Saint Petersburg. My assistant and I walked into the hotel's cafe. A boom box was blaring and the cafe staff were dancing. There was nothing else to do, because there were no customers."

Seeing that the hotels had guests in January was a surprise to Ryder. He set about visiting the newest hotels. He only had time to visit 40. Later in the year, his assistant Lena Morozova visited about another 40 hotels. "There are even more that are new that we haven't been to yet," says Ryder.

Scheduled to open May 20th is a 232 room Novotel Hotel on Nevsky Prospect, which is the city's main street. Accor, the parent company, has big plans for Saint Petersburg. The chain plans two four-star Novotels, three three-star Ibis hotels, and a five star Sofitel to be opened in Saint Petersburg within the next 2 years.

Another four-star hotel soon to open will be the 256 room Ambassador Hotel, and the Kempinski Group will be opening their new Moika 22 four-star hotel, which will feature in the vicinity of 200 rooms with a location near the famous Hermitage Museum, the city's top tourist destination.

Ryder noticed last year that other hotels also had eyes on expansion. "Many of the boutique hotels were looking at opening other locations or expanding their current facilities."

In other recent Saint Petersburg hotel news, the 301 room Grand Hotel Europe, one of the city's poshest hotels, was recently sold to British luxury hospitality chain Orient-Express Hotels. Up to $40 million could be spent on its refurbishment. Orient Express is also considering launching a luxury 50 cabin five-star class yacht which would offer week-long trips between Saint Petersburg and Moscow.

The nearly 800 room Moscow Hotel was also recently sold. And last year the Corinthia Nevskij Palace Hotel secured the building beside it to use in its future expansion.

Ryder describes Saint Petersburg as very dynamic and vibrant. The city is most popular in summer when the phenomenon known as the "white nights" takes place. Because it is so far north, the city experiences very long days and short nights in summer. "There is still light at midnight. It is a very festive time in the city," says Ryder.

Saint Petersburg has become very popular with cruise ship visitors. Ryder stresses that this is not the best way to visit Saint Petersburg. "The ships only stay for 2 or 3 days. It isn't enough time." Ryder's hands are also tied. "We can't get into the port to meet customers at the ship. The small tour guide operators like us have been squeezed out. So with there being little competition, off-shore excursions are expensive and the service probably isn't as good."

Ryder strongly recommends arriving by air and staying for 7 to 10 days because of the large number of museums and palaces and interesting sites. New hotels that are worthy of consideration are the Hotel Dostoevsky, Grand Hotel Emerald, Renaissance Hotel, plus there are now many fine boutique hotels. "Many of the soviet-style hotels have updated their facilities and now have new rooms, but there still are some hotels that are bad."

Ryder encourages travelers who are considering a trip to Saint Petersburg or Moscow to research their hotel options at his new hotel review website: www.hotelinspector.com 

The Moscow hotel market is a bit different with many hotels being quite big and few boutique hotels. "Many Moscow hotels were built for the 1980 Olympics. If it weren't for that, the hotel situation in Moscow might be extremely tight." Ryder has reviews with photos for all of Moscow's 133 hotels.

In both cities, the demand for hotel rooms has created a cottage industry in apartment rentals. "There are all grades of furnished apartments that can be rented by the day." Ryder cautions, "It might be more difficult to get a visa registered though by staying in an apartment."

Russian customs regulations require that foreigners have their visas registered within 72 hours upon arrival, not including weekends and holidays.

His advice for travelers to Russia:

1. Drink and brush your teeth only with bottled water.

2. Be mindful that there are pickpockets and purse snatchers in crowded areas.

3. Never invite a dialog with a police officer. Don't establish eye contact with them. (They might rob you!)

4. Act like you know what you are doing.

5. Be very careful crossing streets. If you get hit, the Russian driver will think it was all your fault for getting in the way.

6. If you can afford it, hiring a local to show you around will result in a much better and safer experience, because few signs are in English, most people don't speak English, and navigation can be difficult for a foreigner.

# # #

Russian Guide Network, Inc.
P.O. Box 4107
Elwyn, PA 19063

Contact Details:

Ed Ryder...
email: ideamaned@yahoo.com
phone: 610-566-1319