The largest hostel in Europe, which will be able to hold 3,000 people, will be built by Amtel Properties in Moscow. The building may be located in the industrial zone on Ryabinovaya Street. The financial investment required for the hostel is estimated at 2.5 billion rubles, according to Vedomosti.

Company Chairman Anna Zavyalova stated that the developer has purchased a plot for the hostel’s construction. The first line will consist of 1,000 beds, she noted. However, the timeframe for construction, the exact location and amount of investment have not been revealed, according to Firm Secret. Zavyalova said that the increase in domestic tourism and approaching world championships in hockey and soccer make quality hostels necessary.

Currently, Moscow has over 300 hostels with over 10,000 bed spaces, according to JLL data. About 75% of them are operated in residential properties. In September 2015, Duma Deputy Galina Khovanskaya proposed a bill that would prohibit hostels to operate in residential areas or for tourists to rent residential accommodations. In November 2015, the Ministry of Culture developed a law to defend hostels from closing. It will be introduced to the Duma in the near future.

Amtel Properties is owned by Russian businessman (of Indian origin) Sudhir Gupta and his son Daniel. The company builds commercial and residential real estate in Russia, Georgia, Ukraine and Belarus. The portfolio of Amtel Properties includes the Iris Congress Hotels, the Hilton Garden Inn Moscow New Riga, the Orbit business center in Moscow, and the Pulkovo Heights multifunctional complex in St. Petersburg.