Marriott to Expand Presence in Siberia

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Mar. 21 – The second Marriott Hotel will be open in Russian Siberia from December 2014, the Marriott International announced this week. The group’s first hotel was Courtyard by Marriott, built in Irkutsk with 208 rooms at an estimated cost of 25 million euros.

The new Marriott Hotel will be constructed in the Siberian city of Krasnoyarsk.

“We are excited to announce this great new addition to our portfolio,” Amy McPherson, president and managing director of Marriott International Europe said. “We currently operate 14 hotels in Russia and see tremendous opportunity to expand across our brands here.”

The five-star 216-room hotel will be constructed by the main investor – local company OAO Krepost Hotel – and will be operated under a management agreement with the entity.

Krasnoyarsk, a city home to roughly 1 million people, is the administrative capital of one of the biggest Russian regions representing 13 percent of the country’s territory. The city is strategically placed at an important junction of the Trans-Siberian Railway.

The 20-story Krasnoyarsk Marriott Hotel will be located two miles northeast of the historic city center with wide views over the Yenisei River, which divides the city.

The owners believe that the new hotel in Krasnoyarsk will satisfy the growing demand for first-class conference halls in the city – there will be a large dance hall and five halls for meetings. Also, it will offer four restaurants and cafes, among which will include the national cuisine restaurant, a sports bar and a sky bar. Visitors can also enjoy a modern fitness club and a roofed swimming pool.

The OAO Krepost Hotel will invest as much as 65 million euros into the project. The pay-off period of the project will make 8 to 10 years, according to Julia Smelykh, CEO of the Krepost Hotel.

The construction is scheduled to start in June 2012.

Mike Collin, vice president of development in Northern Europe for Hilton Worldwide, expressed confidence that there is significant potential for hotel development across Russia.

“We are witnessing the development and growth of domestic tourism, which is partially due to the depreciation of the ruble and the general decline in overseas travel for Russians. This provides additional benefits to the hospitality industry and supports the local hotel market.”

Another world brand hotel will be ready to welcome guests at the end of 2012 as a 200-room, five-star Radisson Hotel with a total 19,100 square meters. The project of the hotel has been developed by an international company which specializes in major international hotel networks – Aukett Fitzroy Vostok. The amount of money to be invested in this project is 1.6 billion rubles (around US$57 million).

Meanwhile, there are no five-star hotels in the city yet.

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