Luxury Hotel in Russia - Opportunity for Investors?
#1
Original Poster
Join Date: Feb 2009
Location: Italy
Programs: millemiglia - milesmore- spg - goldpassport - priority club- the leader club - others
Posts: 393
Luxury Hotel in Russia - Opportunity for Investors?
I'm just back from a trip to several Russian Cities and even if I researched quite deeply I could not find anything better then average four star hotels.
I have been in Ekaterinburg, Tyumen, Rostov, Krasnodar.
Those are not exactly "small" unknown cities so I was particularly surprised, given the large amount of businessman traveling to those places (i might be wrong on this).
The top of the offer in Ekaterinburg was Radisson (That I believe is opening as well in Rostov/Krasnodar).
I really expected something different. I know those cities are not Moscow....but....
Do you really believe there is no market there or investors are just a bit...late?
I have been in Ekaterinburg, Tyumen, Rostov, Krasnodar.
Those are not exactly "small" unknown cities so I was particularly surprised, given the large amount of businessman traveling to those places (i might be wrong on this).
The top of the offer in Ekaterinburg was Radisson (That I believe is opening as well in Rostov/Krasnodar).
I really expected something different. I know those cities are not Moscow....but....
Do you really believe there is no market there or investors are just a bit...late?
#2
Join Date: Feb 2007
Location: London, United Kingdom
Programs: BA Gold, Starwood Platinum & Hilton Diamond
Posts: 134
Of course there's a market for luxury hotels in many Russian cities. For the western investors the major problem is still that Russia is a pretty interesting market... you never know what tomorrow will bring
Last edited by Kuki; Nov 6, 2011 at 1:47 pm
#3
Join Date: Apr 2006
Location: Singapore
Programs: AmEx Centurion, SPG Platinum; LH Senator; Sixt Platinum; HHonors Gold
Posts: 310
Opportunity is there, for sure and returns are 300-500%, however you might lose it all and end up in jail because someone liked the property you built.
#4
Original Poster
Join Date: Feb 2009
Location: Italy
Programs: millemiglia - milesmore- spg - goldpassport - priority club- the leader club - others
Posts: 393
Indeed business can be tricky and scary.... I believe the key in Russia, as in other countries, is to find the proper local partner.... isn't it?