Confidence Returns to Russian Hotel Investment Market
Confidence is returning to the Russian markets although consumers opting for premium hotel brands are more demanding. At a meeting hosted by Ernst & Young, Dr Daniel Thorniley, President at DT Global Business Consulting reported 'Looking at some of the larger consumer products, companies grew organic top-line sales in 2010 at about 8% to 10% and were budgeting for 12% to 14% this year.
Executives also recognized that Russian consumers who are coming back to premium or sub-premium brands are now much more demanding, challenging and sophisticated. They do value the brand, quality and lifestyle of Western products. However, there is a need to justify the value at every level. They want detailed explanations from sales and marketing why they should be buying an expensive Western brand.' Thorniley said.
Thorniley, a specialist in the Russian and CIS markets is amongst the speakers of the forthcoming Russia and CIS Hotel Investment Conference (RHIC) in Moscow which will explore the economic trends for the future. The conference, taking place between 17-19 October, boasts some of the most respected names in the hotel investment industry.
Jonathan Worsley organiser of RHIC commented 'the Russian and CIS markets are moving quite rapidly but with sporadic rather than consistent growth. 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. One of the aims of the conference is to help understand the factors that can help ensure sustainability well beyond the sporting events as Russia holds great opportunity for the medium and longer term.'
Conference sessions will include a detailed look at Mega Events - ensuring ROI remains once the 2014 Winter Olympic Games or the 2018 FIFA World Cup are over; Understanding how these events can be used as a catalyst for sustainably developing tourism within a country and city. Where the key opportunities lie for hotel investors to benefit from mega events both in the short and long term. This session features David Jenkins, Head of Hospitality, Russia & CIS, Cushman & Wakefield In conversation with: Anton Chernov, Chief Executive Officer, VEB Capital; Sergei Gutnik, Senior Banker, Property &Tourism Team, EBRD; Arild Hovland, Senior Vice President Business Development, The Rezidor Hotel Group; Andrey Shirnin, Development Director, Top Project.
Other panels will cover Structuring hotel projects and sourcing financing in Russia; another session entitled The Leaders panel - where global leaders will discuss key opportunities in Russia & the CIS; and a comprehensive look at Understanding the ways in which the political climate and changes in Russia will impact on investors both local and foreign by Alexei Yazikov, Head of Research, LLC Aton.
Further information can be found on www.russia-cisconference.com
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