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?

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 :td:

Four Seasons was supposed to open in Moscow in 2008. Shareholders still sue each other and some people claim that 1 bln dollars is missing. Just FYI.

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.

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?

Maybe the investors could practice by opening a few luxury hotels in the Nordic countries first!