Russia attractive option for hotel investment | 28 July 2011
Russia is the latest country to witness a confidence boost in property investment opportunities.
Following news that the hotel industry is seeing investments rise in Europe, Asia and Africa, Russia has become the latest in which investment opportunities have been perceived to be an attractive option.
However unlike in Europe, Asia and Africa, the growth in Russia is been driven by premium brands – with luxury hotels and chains seeing the largest boost in desirability.
Effectively-run hotels in the country saw top line sales grow by eight to ten per cent last year alone. The figure for this year is set to be in the region of 12 to 14 per cent.
Speaking to traveldailynews.com, global business expert Dr Daniel Thorniley explained that Russian consumers who are going back to the premium or sub-premium brands are now much more demanding, challenging and sophisticated than they used to be.
“They do value the brand, quality and lifestyle of Western products. However, there is a need to justify value at every level. They want detailed explanations from sales and marketing why they should be buying an expensive western brand,” he claimed.
Adding, event planner of RHIC (Russian Hotel Investment Conference) Jonathan Worley told hospitalitynet.org: “The markets are underpinned by some solid economic foundations such as commodities and events such as the Winter Olympics in 2014 and the FIFA World Cup in 2018, both of which have kick-started development within the hotel and construction sectors.”
Written by David Howells on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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