Although the hotel technically had a four-star rating before work began, a decision was made to renovate in order to increase rates, which were well below those of its four-star peers, said Rob Stoddard, an independent hotel consultant who worked on the project in its early stages.
As well as boasting modern facilities, the hotel can now hope to attract visitors looking for more local character than that offered by international hotel brands, he said.
Initially, Guta Group, the hotel's owners, planned a relatively modest renovation, Stoddard said, but the plans gradually became more ambitious.
The eventual investment, close to $ 300,000 per room, would almost be enough to build a new five-star hotel from scratch, said Marina Usenko, vice president of Jones Lang LaSalle Hotels.
The standard room rate has risen by more than 50 percent, to 450 conditional units. With an exchange rate of 32 rubles and 18 percent value-added tax, the current rate reaches 16,992 rubles ($ 587).
The hotel's most expensive room, the Savoy Grand Suite, costs more than $ 2,500 per night, including tax.
Guta owns 84 percent of the hotel, and the Moscow city goverment owns the remaining 16 percent, according to Interfax.
Source: Moscow Times