In your opinion, which the main trends will be characterized for the Russian hotel real estate market in a short-term and a medium-term perspective (1-3 years)?
There will be significant growth in the budget and mid-market sectors with investors looking at cities throughout Russia and not just the major largest cities. There is tremendous opportunity for growth but this may be tempered by downturns in the global economy.
How could you assess the perspectives of development of the budget segment of hotels in Russia?
The budget segment represents one of the most interesting targets for hotel developers, investors and operators alike. There is a huge gap in the market for economy/budget hotels which may well get filled by brands such as Ibis, Hampton by Hilton, Campanile and Holiday Inn Express.
What must be done for that the hotels become the interesting objects of investment in Russia again for the representatives of foreign capital?
A stable political and economic climate in Russia, transparency with all deals and mostly will be a willingness for foreign banks and investors to be prepared to invest in perceived higher risk economies. Presently, too many western banks have problems in securing interest from loans on hotels in major EU economies and therefore are nervous to provide capital to lesser known markets despite the proven level of comparatively higher returns.
Which the perspectives of development the market hotel management on franchising? Why in Russia it`s less popular then in West?
Franchising will become a more popular model going forward as hotel companies are forced to offer franchises in order to expedite expansion in Russia. This has already started.
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