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Capsule Hotel Means Revolution in Costly Moscow

By Henry Meyer & Stepan Kravchenko - 2013-02-13T10:13:26Z

Photograph by Petr Markin/Fomru via Bloomberg

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Budget Accommodation

"This business scheme without any doubt will be a success," Chernikov says as he waits on customers at the hotel reception. "In Moscow there is a major problem with a lack of budget accommodation."

Last year, French midscale hotel chain Mercure opened a 109-room hotel in Moscow near the Foreign Ministry and historic Old Arbat street, marking its first expansion into Russia. A standard room was only available for 290 euros a night at short notice, more than twice the 135-euro price in Mercure's branch in the center of Paris, near the Bastille.