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Hospitality

Intourist

Sistema's hotel business is represented by two key companies: VAO Intourist and Sistema Hotel Management. In 2016, Sistema decided to develop the segment by acquiring and building new assets, attracting management resources and refurbishing old hotels. 

Business description

Development of the Russian hotel market will be driven by the country’s hosting of the World Cup 2018, growth of foreign tourism (6% in 2016) and development of domestic tourism, which has been demonstrating two-digit growth (15% in 2016). Last year, hotel occupancy reached unprecedented figures, with RevPar (revenue per available room) growing by 19% to RUB 11,500. The average income per room for Moscow hotels increased by 14%, and prices are expected to continue growing in 2017. Room rates are estimated to increase by 10%-30%.

At the end of 2016, Sistema Hotel Management acquired Regional Hotel Chain for RUB 2.6bn, increasing the number of rooms under Sistema's management from 2,501 to 3,771 rooms.

In November 2016, Sistema opened Izumrudny Les - an eco hotel in the Moscow region. Its investment programme for 2017 exceeds RUB 1.3bn.

Sistema's investment strategy envisages sourcing new acquisition targets, consolidation of hotel assets and simplification of the segment's organisational structure. It is constructing the Dubininskaya Plaza, a 4* hotel in Moscow, which will be commissioned already at the end of 2017.

Key Executives

Maxim Khorosenkov

CEO

Dmitry Pavlov

Chairman of the Board of Directors

Corporate website:
http://cosmosgroup.ru/