Industry Updates



Representatives of Baltic Construction Company and Marriott International have announced new joint project. This is 32 Novy Arbat, a mixed-use complex. It is expected to start its operation in September 2013.

The agreement signed by the parties contemplates for Marriott Novy Arbat, a new luxury hotel, to be sited within the complex. Furthermore, for the first time in Russia, an international hotel operator will service owners of private apartments situated within the complex. This is a new and unique opportunity in Russia’s luxury real estate market. 

According to the representatives of Baltic Construction Company Holding Company, the total floor space of the complex will be 115,000 sqm. Investments in the development of the mixed-use complex are estimated at approximately 10 billion roubles, with about 4.5 billion of this amount extended under Sberbank’s credit facility. The apartments’ prices range between 13,500 and 22,500 dollars per sqm. The developer expects to recoup the project’s costs within 10 years.

According to Igor Nayvalt, Chairman of the Board of Baltic Construction Company, Marriott Novy Arbat is the fifth joint project between the Russian construction holding company and Marriott International, Inc. Since 2003, they opened such hotels as Renaissance Samara, Renaissance St. Petersburg Baltic Hotel and Courtyard St. Petersburg Vasilievsky, as well as Courtyard City Center Hotel in Moscow. 

«We decided that by combining the superior service provided by Marriott, our trusted partner, with the top-grade performance of our designers and construction workers we might offer a brand new product,» said Mr. Nayvalt to clarify the project’s concept.

All the capabilities of a luxury world-class hotel will be offered for the apartment owners, including the hotel’s concierge service, transportation booking, theatre tickets reservation, flower delivery, laundry and dry cleaning, home cleaning service, clothes mending and footwear repair, room service provided by the hotel’s restaurant, etc. 

Along with the Marriott Hotel and apartments, 32 Novy Arbat will comprise shops, offices, a medical centre and a four-level underground parking for 595 cars.

Vyacheslav Sonin, Baltic Construction Company’s Vice President and the 32 Novy Arbat Project Leader, added in his speech that cooperation with a high-profile international hotel operator «places serious requirements on the project, primarily on security systems.» Mr. Sonin assured that «all of them meet the highest global standards.»