WHILE a worldwide recession hits the hotel sector hard, those willing to invest in their businesses as competitors panic can be the ones to score, says Jonathan Worsley, chairman, Bench Events.
“For the hotel industry, finding the right market for prospective growth is extremely difficult without expert guidance, advice and support. Get that balance right and the long-term rewards can be very lucrative for the strategic investor,” he said. The Russia and the Commonwealth of Independent States (CIS) region was presenting such an opportunity.
The Russia and CIS Hotel Investment Conference (RHIC) being held in St Petersburg from October 25 to 27 at the newly refurbished Corinthia Hotel, was offering a forum for discussions on this and other issues. More than 60 speakers and panellists would be focusing on the difficult challenges faced by the hotel industry, while at the same time exploring future growth opportunities. The forum also acts as a platform for senior hospitality executives to meet prospective partners and explore new business ideas.
Worsley said that Russia and the CIS region was one of the first 15 global economies predicted to bounce back from the current economic climate. “It has a combination of reduced land and construction costs, significant infrastructure investment and a hotel industry still in its infancy — offering the perfect formula for success and return on investment ROI (return on investment),” he said.
Gerald Lawless, chairman of Jumeirah Group, believes that from a development point of view, the company views Russia to be one of its prime potential locations and is very keen to establish a presence in Moscow and St Petersburg.
“We have already signed a management agreement to operate a luxury hotel and resort in Sochi, the venue for the 2014 Winter Olympics,” he told TTN.
“Russia is a key market for Jumeirah both with regards to inbound tourism to Dubai, London and New York as well as potential for the expansion of Jumeirah Stay Different brand.” Lawless is among the speakers at this year’s conference.
“Identifying and implementing successful growth strategies can only come from bringing regional and global industry experts together to listen, discuss, debate and interact,” Worsley said.