Russia Needs to Overcome Regulatory and Bureaucratic Hurdles to Realise Hotel Development Potential
There is enormous potential to develop hotels in Russia, but that potential continues to be hampered by bureaucracy and a regulatory framework that is not conducive to growth. This was the key finding at the Russia round table discussion held at the second annual Hotel Investment Conference held in London last week. The Panel was hosted by Michael O'Hare, Managing Director of Horwath HTL Russia and was joined by Patrick Fitzgibbon, Senior Vice President of Development for Hilton Worldwide (Europe and Africa) and Arlid Hovland, Senior Vice President for Business Development for the Rezidor Hotel Group.
Michael O'Hare said, "The panel highlighted all the attractions and all the frustrations of doing business in a country like Russia. The fact of the matter is that Russia has enormous potential, with huge numbers of secondary and territory markets with populations well in excess of 1 million with very little brand presence. Some of the international brands, including Hilton and Rezidor, have pipelines in some of those markets, but Russia still needs to do more in order to fully realize the potential. In addition to the bureaucratic challenges that investors face, there are some touristic challenges to be overcome as well, with Visa's causing problems and no open sky agreement that would attract larger air carriers into these secondary attention. Having said that, all the development currently being done around the Olympic site at Sochi is a very clear indication of what can be achieved with the right conditions are in place."
Radisson Blu Belorusskaya — Moscow, Russian Federation
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