BERLIN — Russia was recently identified by the hotel consultants at Horwath HTL as one of the key markets for growth in the hotel sector at the International Hotel Investment Forum in Berlin.
“We have seen a real increase in the number of projects coming on stream that we have been asked to look at, which is always a good sign of confidence in the market. The second indication is to look at the number of deals that have been announced, signed or under consideration by the major hotel groups, which shows not only a strong pipeline but also a real investment in the region to roll out their brands,” said Michael O’Hare, managing director for Horwath. “It’s no secret there is a chronic undersupply of bedrooms in Russia and the Ukraine and that demand will have to be met over the coming years. Add to the mix the winter Olympics and the World Cup and you have all the conditions for sustained growth.”
The assessment was based on the strong price of oil and chronic undersupply of hotels, particularly in the secondary and tertiary markets in the mid-market and budget sectors.
Meanwhile, experts have identified a number of challenges for development, including the difficulty in securing financing for hotel projects.
Horwath HTL has 50 offices in 39 countries.