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International Hotel Chains in Russia – 2021 International Hotel Chains in Russia International Hotel Chains in Russia – 2021 International hotel chains in Russia According to EY’s annual market research on the presence of Moreover, eight new branded hotels (970 rooms) were opened international hotel brands in Russia, there were 210 hotels under during 2020, compared with 12 hotels with a total room stock international management operating in the region as of February of 2,077 keys commissioned in Russia in 2019. 2021 with a total room stock of 43,845 keys. Diagram 1. New hotels opened under international brands, per year (February 2021) 30 25 24 23 20 19 17 15 14 13 13 12 11 10 9 8 8 7 5 5 5 5 3 2 1 1 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 1 1 20 0 0 0 0 0 0 20 2 2 2 20 20 20 20 200 201 201 201 201 201 201 201 201 2 2 2 Number of hotels Sources: hotel operators’ data, EY analysis Hotels under international brands are currently located in If all the announced projects are implemented, the top five 41 cities of Russia. More than half of the existing room supply cities will slightly change by 2029. The share of Moscow and is concentrated in Moscow and St. Petersburg (52%), followed by St. Petersburg will decrease only by 1% (to 51%), while the Sochi (9%), the Moscow Region (6%), Krasnodar (3%) and other share of Sochi (9%) and the Moscow Region (6%) will remain locations. unchanged. Ekaterinburg will take the fifth place again. It is planned that by 2029 the number of hotels under Moreover, in years to come openings of the first ever branded international management will increase by 81 new properties hotels are planned in 11 new locations, including Kislovodsk, (15,560 rooms). Thus, if by 2029 all announced hotels open, the Kogalym, Mineralnye Vody, Petropavlovsk-Kamchatsky, Ryazan, number of hotels under international management in Russia will Saratov, Tambov, Tomsk, Zelenogradsk, Yuzhno-Sakhalinsk reach 291 (59,405 rooms), located in 52 cities. and Yakutsk. 1 | International Hotel Chains in Russia – 2021 Diagram 2. Share of existing room supply by Diagram 3. Share of future room supply by cities cities in Russia (as of February 2021) in Russia (including existing room supply) Other cities Moscow Other cities Moscow 30% 32% 31% 32% Krasnodar 3% Ekaterinburg 3% Moscow region Moscow St. Petersburg St. Petersburg region 6% Sochi 20% 6% Sochi 19% 9% 9% Sources: hotel operators’ data, EY analysis Sources: hotel operators’ data, EY analysis Further, during 2020 new branded hotels opened in Krasnodar, Diagram 4 below shows the presence of international hotel chains Moscow, the Moscow Region and Perm, while in Saransk, Sochi and in Russia as of February 2021. Ulyanovsk operating hotels underwent a rebranding. International Hotel Chains in Russia – 2021 | 2 Diagram 4. Existing room supply under international management by city of Russia (as of February 2021) 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Accor Hotels Mamaison Hotels & Residences Corinthia Hotels Mandarin Oriental Hotel Group BWH Hotel Group Marriott International Four Seasons Hotels & Resorts Okura Hotels & Resorts Domina Hotels Penta Hotels Worldwide Hyatt Hotels Corporation Radisson Hotel Group Hilton Worldwide Rocco Forte Hotels Jumeirah Group Sokos Hotels InterContinental Hotels Group Louvre Hotels Group Lotte Hotels & Resorts Kempinski Hotels Belmond Sources: hotel operators’ data, EY analysis 3 | International Hotel Chains in Russia – 2021 The total branded room stock available in Russia as of February Diagrams 5 and 6 below show the actual and projected footprint 2021 (i.e. 210 hotels with 43,845 keys in 41 locations) is of hotel operators in Russia as of February 2021 and including operated or franchised by 20 international hotel chains currently future projects till 2029. present in the region. The largest market share (82%) is divided between five chains: Accor Hotels, Hilton Worldwide, Marriott International, Radisson Hotel Group, InterContinental Hotels Group. Diagram 5. Share of hotel operators – distribution Diagram 6. Share of hotel operators – distribution of existing room supply (February 2021) of future room supply (including existing rooms) Other operators Other operators Radisson Hotel Accor Hotels 18% Group 15% Wyndham 26% 23% Hotel Group 3% Hilton Hilton Worldwide Worldwide 11% 11% Accor Hotels 20% Radisson Hotel Marriott Marriott Group International International 18% 13% 12% InterContinental InterContinental Hotels Group Hotels Group 15% 15% Sources: hotel operators’ data, EY analysis Sources: hotel operators’ data, EY analysis The largest variety of brands is offered by Accor Hotels – hotels Most of the hotels on the Russian market are currently operating in Russia operate under eleven brands of this operator as of under the Park Inn by Radisson brand of the Radisson Hotel today. If all the announced projects are implemented by 2029 Group – 20 properties with 5,199 rooms. Second place is taken by there will be 17 brands of the company present in the region. the Ibis brand of Accor Hotels – 18 hotels with 3,411 rooms. Radisson Blu of the Radisson Hotel Group (13 hotels / 3,384 rooms) and Holiday Inn of InterContinental Hotel Group (13 hotels / 3,125 rooms) share third and fourth places. International Hotel Chains in Russia – 2021 | 4 Russian hotel brands Meanwhile, Russian hotel operators are increasing their presence For comparison, at the end of 2019 there were 201 hotels under in both Russia and abroad. The number of hotels cooperating international management in Russia vs. 108 hotels operated by with national hotel companies is growing. Currently, the share Russian chains. of hotels under international brands (210 hotels) is 1.2 times higher than the share of hotels under major national hotel The Russian market of professional hotel management is rapidly companies (175). developing: new management companies are opening, while existing operators are increasing their portfolio by opening new hotels both on the domestic market and abroad. Major Russian hotel chains are listed in the table below: Table 1. Russian hotel operators in the domestic and international markets (February 2021) Number of hotels Chain Regions / cities in Russia Other countries in Russia / abroad AZIMUT Hotels 33 / 9 Murmansk, St. Petersburg, Uglich, Rostov, Pereslavl, Germany, Austria, Israel Yaroslavl, Kostroma, Moscow, Nizhny Novgorod, Voronezh, Penza, Ufa, Tuapse, Astrakhan, Nalchik, Sochi, Kemerovo, Novosibirsk, Kyzyl, Mirny, Yakutsk, Vladivostok, Tula* AMAKS Hotels & Resorts 28 / 3 Azov, Valdai, Voronezh, Izhevsk, Krasnoyarsk, Omsk, Belarus Ryazan, Ufa, Belgorod, Veliky Novgorod, Ioshkar Ola, Kurgan, Perm, Tambov, Khabarovsk, Tolyatti, Rostov-on- Don, Noviy Urengoy, Kazan, Vladimir, Essentuki, Permsky Krai, the Moscow Region, the Novgorod Region, Ivanovo, the Krasnodar Region, Moscow Atelika Hotel Group 17 / - Alushta, Sudak, Feodosia, Anapa, Vityazevo, Sochi, Tuapse, - the Tver Region (Seliger), the Tula Region GOST Hotel Management 11 / - Moscow, the Moscow Region, Sochi, Nizhny Novgorod, - Kislovodsk, Abakan Cronwell Hotels & Resorts 9 / 3 St. Petersburg, the Leningrad Region, Omsk, Khanty- Greece Mansiysk, the Khanty-Mansiysk district (Dobrino settlement), the Tyumen Region (Uray) Marins Park Hotel 6 / - Yalta, Sochi, Ekaterinburg, Nizhny Novgorod, Rostov, - Novosibirsk Cosmos Group 6 / 3 Moscow, the Moscow region, Petrozavodsk, Czech Republic, Italy, Namibia Republic of Altay Alliance Hotel Management 6 / - Saransk, Obninsk, Nizhny Tagil, the Moscow Region, Kursk, - Sochi HELIOPARK Hotels & Resorts 5 / 3 The Moscow Region, Penza, Anapa (Sukko), Karelia Abkhazia, Germany Total 175 / 21 * opening in 2021 Sources: hotel operator’s data, EY analysis 5 | International Hotel Chains in Russia – 2021 New hotels: 2021 During 2020 and the first months of 2021 the Russian hotel According to information that EY has compiled from hotel market increased by nine new hotels opened under international operators and open sources, 21 more hotels are due to open in brands. 2021. We believe, however, that the opening of some of them may be postponed until 2022. Table 2. Hotels opened under international management in Russia in 2020 and the beginning of 2021 Chain Hotel Number of rooms City Accor Hotels Mövenpick Moscow Taganskaya 154 Moscow Novotel Congress Krasnaya Polyana (Phase I) 92 Sochi Hilton WorldWide Hampton by Hilton Krasnodar 105 Krasnodar InterContinental Holiday Inn Express Moscow - Khimki Go Park 116 The Moscow Region Hotels Group Holiday Inn Perm 118 Perm Holiday Inn Theatre Square St. Petersburg 158 St. Petersburg Holiday Inn Chelyabinsk 76 Chelyabinsk Radisson Hotel Group Radisson Hotel & Congress Center Saransk 137 Saransk Radisson Hotel Ulyanovsk 172 Ulyanovsk Total 9 hotels 1,128 rooms 9 cities Source: hotel operators’ data, EY analysis International Hotel Chains in Russia – 2021 | 6 Table 3. Hotels under international management due to open in Russia in 2021 Chain Hotel Number of rooms City Accor Hotels Novotel Vladivostok 220 Vladivostok Ibis Styles Kogalym 120 Kogalym Fairmont Moscow Mayakovskaya 159 Moscow Ibis Moscow Semenovsky 120 Moscow Adagio LeRond Sochi 457 Sochi Ibis Styles Chelyabinsk 96 Chelyabinsk Radisson Hotel Group Radisson Gorizont Rostov-on-Don Hotel 169 Rostov-on-Don Hilton WorldWide DoubleTree by Hilton Moscow 99 Moscow Hampton by Hilton Rogozhsky Val 147 Moscow Hilton Garden Inn Moscow Paveletsky 245 Moscow InterContinental Hotels Group Crowne Plaza Moscow - Park Huaming 340 Moscow Marriott International Four Points by Sheraton Moscow Vnukovo Airport 250 Moscow Marriott Imperial Hotel 268 Moscow Courtyard by Marriott Rostov-on-Don 200 Rostov-on-Don Courtyard by Marriott Sochi Plaza 340 Sochi BWH Hotel Group Vertical BW Signature Collection 82 Moscow Okura Nikko Hotels Okura Vladivostok 223 Vladivostok Hyatt Hotels Corporation Hyatt Place Ekaterinburg 146 Ekaterinburg Hyatt Regency Rostov Don-Plaza 188 Rostov-on-Don Wyndham Hotel Group Ramada Encore Ekaterinburg 214 Ekaterinburg Ramada Kislovodsk 124 Kislovodsk Total 21 hotels 4,207 rooms 8 cities Source: hotel operators’ data, EY analysis Diagram 7.
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