Russia: Risks, room shortage greet developers
International hotel companies are salivating at the prospect of growing their portfolios in Russia, but opening a hotel in the country is not an easy task. One of Russia’s biggest attractions is the fact that it faces a serious undersupply of quality hotel rooms. Moscow, a city of 12 million people, has only about 6,000 Western-standard beds, compared with Paris, which has 100,000 beds, and London with 90,000, according to Scott Antel, a partner in the Russia office of DLA Piper, a legal-services firm with offices located throughout the world. There are 14 cities in Russia with more than 1 million people, and most have no Western hotels, he said.