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Russia&CIS Hotel Investment Conference

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Russia&CIS Hotel Investment Conference

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Oh the glory of St Petersburg, Russia – shown, a detail of the Winter Palace, which houses the Hermitage, the museum-of-museums By: Mary Gostelow

The Who Is Who of the Luxury Hotel World were in St Petersburg end of October 2009, and many arrived early, or stayed on, to visit the Hermitage, the ballet, the opera…

Why were these top hoteliers in town? Well, the annual Russia&CIS Hotel

General Director of Mospromstroi, sadly could not make it. The only

Investment Conference (RHIC) was held in St Petersburg, Russia, October

other prominent no-show, by the way, was Valentina Matvienko,

25-27, 2009. There were 360 delegates, a remarkably good number in

Governor of St Petersburg, but the Government’s Chairman of the

view of the current economy and the obstacle of getting a Russian visa –

Committee for Economic Development, Industrial Policy and Trade

170 of the delegates were not Russian. All must have agreed, however,

Maxim Sokolov ably filled in for her: this is the third year in a row, he

that getting there was really worthwhile. Sessions were good, social

said, where his city sees an additional 1,300 rooms added, there are

events sensational, and networking was producing, in some cases,

over 150 new hotels planned and the industry has been recognized as

immediate business. Big players in Russia were highly prominent, with

crucial to his strategic project.

the strong IHG delegation sitting front-row for many sessions: as Kirk Kinsell, President EAME region for InterContinental Hotel Group IHG

Sessions, with simultaneous translation throughout, were magnificently

said, his company has been in Russia for ten years now, it has 14 hotels

organized at the Corinthia St Petersburg, which the first night hosted a

in Russia-CIS with a future pipeline of nearly 20, and growing presence

Vegas-type extravaganza with long laser show, Bond Girl-lookalikes and

here helps the outbound market veer to IHG brands when travelling

a white-suited pianist on a white Steinway. Overall organizers were Jon Leibowitz, evp Questex Media Group, and Jonathan Worsley, chairman Bench Events.

The television series Dragons’ Den provided inspiration for the riveting ‘RHIC Investment Den’. Four developers presented projects, which were

Co-host from the hotel side was the Grand Hotel Europe, which held

assessed by three investors, Georg Folian, CFO Warimpex; David

another gala on the second evening of the conference, with yet more

Geovanis, MD Russia, L&R; Dmitry Tetiouchev, Head Russia/CIS, Ernst &

glorious buffets (and a caviar room) and a full orchestra. This is one of

Young. Tomas Dukala, VP Morgan Stanley, presented Absolute Group’s

those hotels that is always active – the night before RHIC began, it was a

already-built seven-floor, 128-room St Petersburg’s super-luxury

main sponsor at the ballet finals HYPERLINK TO ATW ST PETERSBURG

Ostrovskogo Square project. Yuri Ilyin, CEO of LSR Global’s A Plus Estate

BALLET. Earlier in the month, on October 13, 2009 the Grand Hotel

Company, presented possible adaptation of the existing five-floor St

Europe has held a charity “Plant a Tree” in the SOS Children’s Village

Petersburg No 1 Nevsky Prospekt, which could be a small boutique hotel,

Pushkin for orphans. The event was timed to coincide with three

a larger luxury hotel, or 30-apartments which would sell at Monte Carlo

important anniversaries: 60 years of the SOS Kinderdorf International

prices (which all the potential investors preferred to either of the hotel

charity organisation, 20 years of the Convention on the Rights of

alternatives). Rudolf Schmid, Partner Environmental & Real Estate

Children, and 15 years of the Children’s Villages – SOS Russia

Consulting EREC, stressed Ukraine: he showed two nearby slots, one for

organisation. The event was arranged by the Grand Hotel Europe’s

hotel, one for offices, on the river in central Kiev, which currently only

Charity Foundation for children and the foundation’s President, Thomas

has three hotel rooms per 1,000 residents. Oleg Shaposhnikov, Director

Noll, and was actively supported by the staff of the hotel. “It was no

of Nikolskiye Ryady CJSC, presented the conversion of an existing 1789

coincidence that we chose to plant fruit trees,” said Thomas Noll. “Like

merchant-shop building in St Petersburg old town to a Crowne Plaza

them, the young residents of the SOS children’s village should grow,

hotel, with new office towers planned for the central courtyard. When

blossom and prosper in their future lives.”

the potential investors 'placed' their allocated ‘money’, which came to 50 million Euro each, the results were Yuri Ilyin 59 million, Oleg

A total of 70 fruit trees and bushes were planted. At the top of the alley

Shaposhnikov 50 million Euro, Tomas Dukala 31 million Euro, Rudolf

of trees, Thomas Noll and Sergei Yakovenko, the director of the

Schmid ten million Euro.

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children’s village, planted two rowan trees. This event’s participants included famous actor Yury Galtsev; TV presenter Anna Fradkina; mother

There was talk of 12,700 additional rooms being planned in the

of famous football player Tatyana Arshavina; the deputy consul of the

combined Sochi-area coastal complex and the mountain Krasnaya

Consulate General of Finland, Paula Karppinen; the wife of the general

Polyana area, in readiness for the 2014 Winter Olympics, but who would

consul of Switzerland, Edith Hueck; the general director of Radio Zenit,

need them other than during the Games? Suggestions included

Elena Vorozheva; the chief editor of Russky Metsenat, Arkady Sosnov;

marketing to the 250-million Russian speaking people, including Israelis

the chief editor of Interbusiness magazine, Vera Dmitrieva; the publisher

(who do not need Russian visas), to old people and, during school

of Svetsky Peterburg magazine, Natalya Takmakova; the PR director of

holidays, family groups might work. But, as it was pointed out, you can

Khlebny Dom, Irina Galieva; a priest from the Tsarskoe Selo district,

fly from Moscow to the French Riviera for 400 Euro but it is 500 Euro for

Father Gleb (Grozovsky); Alexei Ekimov from Rusbank; Natalya Volvich

the two-hour flight to Sochi. There is also the challenge of transport for

from Sberbank Russia; Alfia Rakhmatulina, a friend of the village; and

hotel employees.

Vasily Markov from Deloitte.

HSH Prince George Yourievsky, the Patron of RHIC 2009, said Russia has land, water and most key resources. Whenever anyone has attacked

Grand Hotel Europe, St. Petersburg, Russia

Russia in the past, it has survived. Among other duties here, he

See other hotels in St. Petersburg (4)

presented the Lifetime Achievement award to Hank Ciaffone,

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International President of Interstate Hotels & Resorts, who pioneered

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foreign management in Russia – the co-recipient, Boris Guretsky,

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