I contacted visatorussia and got a quick answer to this question:

> If you do not plan to stay at a hotel, please leave the field blank. A
> hotel will then be mentioned in your invitation for form's sake and
> you will have to indicate the same hotel in your consulate application
> form. This way you will obtain  a tourist visa with no complications
> and once in Russia, you will be able to choose accommodation in
> accordance with your convenience.