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Russia's top luxury hotels, once managed by renowned international brands such as Ritz Carlton, Four Seasons, and Park Hyatt, are now seeking partnerships with leading Indian hospitality firms to operate these properties. Following the withdrawal of international brands from the country due to its invasion of Ukraine, Russian officials have approached Indian Hotels Co. Ltd (IHCL), which operates Taj luxury hotels, and East India Hotels (EIH), which operates The Oberoi hotels, for potential collaborations.
With the departure of Western hospitality chains like Marriott International and Hyatt Hotel Corp. from Russia amid sanctions, luxury properties in Moscow and St. Petersburg have lost their international branding and management expertise. Consequently, there is a need for new operators to manage these properties, as well as upcoming luxury hotels under construction and mid-scale properties in other parts of the country.
Lemon Tree Hotels expressed openness to running such hotels if the opportunity arises, while Sarovar Hotels & Resorts discussed and evaluated some hotels in Russia but did not finalise any deals. Travellers seeking accommodation at these former international brand hotels may not find them on booking aggregators but can still search for them online and book directly through their websites.
Despite the absence of some branded hotels, Moscow remains a destination with over 19,000 accommodation facilities. Moscow officials view India as a priority market for tourism, with an increasing number of Indian visitors in recent years. To further promote tourism, Moscow is encouraging Indian online travel platforms to create awareness and offer tour packages to Russian destinations.
Russian interest in Indian hotel operators has been confirmed by hospitality industry executives, with hotel asset owners seeking management contracts with Indian hotel brands. This presents an opportunity for Indian companies to expand their development pipelines and establish a presence in the Russian hospitality market.
Dusit International, a Thai hotel company, has already signed agreements to operate hotels in Sheregesh, Russia's Siberian region. Additionally, franchised hotels, where management companies provide their name and global distribution system to the property for a fee, are also available for Indian hotel brands to consider.
In conclusion, the partnership between Indian hospitality firms and Russian hotel owners offers mutual benefits, with Indian companies gaining opportunities for expansion and Russian properties receiving expertise and global branding. As both sides explore potential collaborations, the hospitality landscape in Russia is poised for significant developments in the coming years.
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