Major Hotel Operators Plan Russian Expansion

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More and more leading international hotel operators are planning expanding in the Russian market in the coming years, says analysts of GVA Sawyer, a well-known international property advisor. 

According to them, during the economic crisis hotels have become one of the most attractive segments of investments worldwide, with Russia considered as one of the most promising markets for their further development.

Analysts believe the Russian hotel market is still underdeveloped, where the demand is still outstripping supply, causing interest among the world's major hotel investors.

Among them are Hilton Hotels and Starwood (NYSE:HOT). The latter, according to local media reports, plans to open a number of hotels in Russia under its Sheraton brand, while Hilton Hotels is ready to open at least 70 hotels in Russia.

In addition, Scandic, a well-known Swedish hotel chain, has also declared its intention to expand its presence in Russia in the coming months.

Meanwhile some operators have already got access to Russia. For instance, Shangri-La Hotels and Resorts has recently signed an agreement with China Huaming International Investment Corporation on the construction of its first hotel in Russia.

Experts believe that a successful implementation of all of these projects will help Russia to reach the European level in terms of number of hotel rooms per capita.

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