Cosmos Group is one of Russia's leading hotel management companies that provides a full range of hotel development services: from project consulting and preparing a hotel for opening to cost optimisation and increasing asset capitalisation. Cosmos Group's portfolio includes 17 hotels in 14 locations across Russia and abroad, including hotels under well-known international brands (Park Inn by Radisson and Holiday Inn Express) and stand-alone hotels owned by the Corporation. Cosmos Group provides operational management of these assets.
Cosmos Group was founded in April 2017. The company's functions include management and development of Sistema's hotels and provision of a broad range of hotel services to external counterparties: from hotel concept development and design and construction support to brand selection and hotel management.
Cosmos Group has roughly 4,000 rooms under management in 3-5 star hotels located in tourist and business centres: city business hotels and luxury resorts in Russia, Italy, Namibia and the Czech Republic. The largest asset is Cosmos Hotel in Moscow (1,777 rooms).
The company's diversified portfolio is comprised of hotels of various types and in different locations with the main focus on 3-4 star city business hotels. As part of its strategy for its hotel assets Sistema will conduct a rebranding of Russian hotels. The Group’s hotels will start operating under the Cosmos Hotels & More brand, with the exception of Holiday Inn Express and Park Inn hotels, which will continue operating under international brands. The chain will comprise four brands: My Cosmos for economy-class city hotels, Cosmos for classical business hotels, Cosmos Collection for premium hotels and CosmosStay for serviced apartments.
Sistema’s development strategy in the hospitality business envisages growing the “asset light” business segment (a model based on hotel management as opposed to hotel ownership) through expansion of the portfolio of assets under management by adding hotels owned by third parties. Cosmos Group’s expertise enables the management company to win contracts for managing both independent and international branded hotels.
The main event of 2018 was the FIFA World Cup, which attracted more than 2.7 million tourists to 11 Russian cities. Sistema’s hotels located in host cities showed substantial growth of operating indicators.1
Revenue from hospital assets increased to RUB 5.3 bn by 22.8% in 2018 year-on-year mainly driven by higher occupancy rates and an increase in the average daily rate (ADR), as well as by the World Cup.