Russia Hotel Expansion Summit, 2013
May 16th - 17th, 2013, Moscow, Russia
Numerous hotel chains have announced ambitious expansion plans for the coming years and every month new developments and projects are published. The official figures tell that by 2018, the number of international hotel groups will increase from 89 to 215.
Noppen’s Russia Hotel Expansion Summit gathered high-level executives, government representatives, industry experts and market leading solution providers in a focused two-day program designed to enhance business. Panel discussions and presentations elaborated on future strategies, operations efficiency and updated technologies required for guaranteeing customer satisfaction and success.
The Chairman of the 1st conference day, Ms. Olga Arkhangelskaya, Partner, Head of the Real Estate, Transportation, Infrastructure and Government & Public Sector in the CIS of Ernst & Young, opened this event with the welcome speech and highlighted that Russian hotel sector is very much developing and the investors are very keen for the hotel projects engagement. She captured everyone’s attention throughout her speech and shared her comments with the public.
First presentation was given by Mr. Richard Tibbott, Chairman Advisory - Development Consultancy and Hotels of Cushman & Wakefield. He provided a broad outlook of Russian hotel development updates, trends, expectations and opportunities. He drew attention to the importance of creating destinations to have successful visitor experience. Furthermore, Mr. Tibbott discussed some projects and expansion plans in major and smaller Russian cities. He also emphasized that there are even bigger things to come yet in this industry and this is not the end in terms of development.
Hereafter, the audience welcomed Mr. Darren Blanchard, Senior Director Business Development of Carlson Rezidor Hotel Group. He gave an overview of the group’s future plans & past experiences on hotel development in Russia. Their projects are rapidly shifting up. The industrialized cities are the target for the hotel group, but they’re planning to go more East in the future. It’s all a stepped process. Mr. Blanchard shed light on how important it is to have control to be able to manage a property.
Mr. Wilco van Burgsteden, European Marketing Director Hospitality & Commercial Laundry of Diversey, part of Sealed Air, shared with the participants the possibilities of enhancing customer satisfaction by demonstrating the importance of cleanliness. To uphold client’s expectations, it is crucial to provide efficient integral hygiene solutions.
The following keynote speech was given by Mr. Igor Dyadchenko, Development Director Russia & CIS of Hilton Worldwide. He briefly spoke on the history of the hotel group and the projects they are planning to realize in Europe and specifically in Russia, which the group considers as a strategic development market. Hilton Group has a focused brand strategy.
Next was the presentation of Mr. Oliver Reis, Member of the Board and Sales Director Projects Russia & CIS of Grohe. He showed the audience different equipment the company supplies to the hotel sector and their equipment is based on ‘green solutions’, leading to optimal use of water and energy.
Mr. Anatoly Kondratenko, Senior Director Acquisitions & Development, Russia, CIS & Baltics of Starwood Hotels & Resorts captivated everyone with his talk on the move to the Russian regions. He explained enthusiastically how and why international hotel operators are recently expanding in the regions. He also focused on the important movers and highlighted on the Starwood plans.
After the lunch break, the company CIAT gave a workshop on closed door for the exclusive invitees. Mr. Alexei Guervetovski, Sales Development Director of the company illustrated how the CIAT solutions are taking care for the climate comfort in the hotels.
Mr. Roman Marikhbein, Segment Manager CBS Segment of Grundfos, informed the participants regarding their pump system solutions for hotels and clarified how their technology ensures the guests stay comfortable at hotels.
The panel discussion that followed, was led by Ms. Elena Lisina, Director of Cushman & Wakefield, with the participation of Mr. Mikhail Terekhov, Senior Technical Expert of AHI Carrier, Mr. Denis Akimov, WNS Business Development Manager, Russia and CIS of Motorola Solutions, Mr. Alexander Pushkarev, General Manager of OM ID, Mr. Adrian Salter, General Director of MEP Engineering and Mr. Timur Radjabov, Senior Project Manager, Technical Services of Carlson Rezidor Hotel Group. They discussed how new and exclusive technologies can increase performance and profitability and how these solutions can be integrated into the Russia’s hotels. Subjects as Wi-Fi, green buildings and energy saving also came on board along with application of the technology as per the place of the hotel, the building itself and the regional standards.
Hereafter, the audience was enlightened by Mr. Andrej Panov, District Manager, Light Industry of Nalco. He showcased the capabilities of Nalco in water and energy management for lodging. They quantify the impact through Environmental Return On Investment (e-ROI).
When the last networking break of the day was over, Mr. Rustam Dominov, Director of Hotel Construction Department of the company STEP, gave an interesting presentation discussing his experiences during the renovation projects of hotels which were constructed in the Soviet Period. There are still a lot of Soviet hotels that need to be reconstructed. Mr. Dominov also made a comparative analysis between the new construction and reconstruction. The public afterwards had queries for him regarding the architecture and technical conditions.
Post this, the panel discussion took place, moderated by Mr. Mikhail Mandrigin, General Director of Aukett Fitzroy Vostok. The panelists were Mr. Anton Nadtochiy, Co-founder of Atrium, Mr. Alexei Ilin, Head of the Projects of SPEECH Tchoban & Kuznetsov, Mr. Alexander Balabin, Managing Partner of SEVERIN GROUP and Mr. Alexander Zhukov, Founder of Alexander House. The discussion concerned the opportunities and the challenges of big and small hotels. Everyone was asked to give their own definition of boutique hotel. For a boutique owner, the term ‘family’ was the most important. The others said that ‘boutique’ depends on experience, it’s an effective way of operating a hotel and it consists of high design.
After the last session, Ms. Olga Arkhangelskaya, the Chairman of the first conference day, ended the day by giving some closing remarks where she focused on a lot of interesting possibilities in the Russian hotel sector.
Mr. Cameron Sawyer, Chairman of the Board of Directors of GVA Sawyer, was the Chairman of the second conference day. He summarized shortly the topics which were discussed the day before and warmly welcomed the speakers and the participants to enjoy some more exciting presentations and panels during the second day.
The opening presentation was from Ms. Irene Engel, Partner at CMS. She provided the audience with the overview of legal framework of hotel business in Russia. She explained the international principles; where after Ms. Engel went in-depth on specific laws of Russia.
Following that presentation, Mr. Philippe Bone, Director of Development Russia & CIS of Accor told about the hotel group, its brands and about development strategies they’re defining in Russia. Mr. Bone also showcased an environment analysis, highlighting country’s opportunities and mentioning country’s risks. Russia is a growing country with strong potential.
Mr. Peter Vinke, Director International Key Accounts, Healthcare TV & Marketing of TP Vision- Philips Hospitality TV, accentuated innovative hospitality TV. He introduced smart TV, which contributes to cost efficiency in installations and recurring revenue.
After the tea break, Ms. Leila Urazbaeva, Senior Banker at EBRD, clarified the attendees on financial difficulties and risks of hotel project engagement. She explained how to select the right financial model with appropriate return on investments and a fair balance of risk / reward.
The panel discussion about enhancing win-win for investor/developer/operator was led by Mr. Stephane Meyrat, Managing Director of Bevelia Hospitality Group. The participants who joined to share their insight were Mr. Denis Gaevski, Head of Long Term Financing and Real Estate at Bank of Moscow, Ms. Leila Urazbaeva, Senior Banker at EBRD, Mr. Philippe Bone, Director of Development Russia & CIS of Accor and Mr. Cameron Sawyer, Chairman of the Board of Directors of GVA Sawyer. They discussed the ways of attracting the investors and helped the audience understand how the banking sector works. As for example, banks require sponsor guarantee and Russian regional banks are easier to turn as it is risky for the international banks.
Ms. Fedra Mainetti, Hospitality Key Account – EMEIA of Technogym gave a speech about wellness in hospitality. She explained about the three pillars of Technogym: innovation, technology and design. She also highlighted the existing market trends such as word-of-mouth, where consumers continue to trust other consumers not companies. Technogym’s approach is to engage guests with an unforgettable wellness experience at any moment of their stay.
Mr. Pavel Barannik, Commercial Director of Legrand, presented company’s electrical and digital innovative solutions for hospitality buildings. Legrand has solutions for each area in the hotel. Mr. Barannik showcased the way they increase guest experience: through design, through technology and access to all. For Legrand, it’s a priority to help improve the service and to raise customer satisfaction.
After enjoying the lunch, the participants were excited to listen to the keynote speech of Mr. Sergei Tchoban, Managing Partner / Architect of SPEECH Tchoban & Kuznetsov. He talked about the importance of architectural touch and design fitting in hotel projects and mixed-use complexes. Mr. Tchoban described a hotel project as a magnet that attracts clients, operators, etc. Hotel must be a center place of meeting people and networking, where everything has to fit together. He also tries to avoid use of technics on the roofs where they are easily visible.
Here following, Mr. Alexander Balabin, Managing Partner of SEVERIN GROUP, enlightened the value of exterior and interior design of the hotel buildings. He immediately started with the expression: there is no second chance to make a first impression. Mr. Balabin showed examples of the projects and shared his insight with the audience.
During the next discussion panel, the moderator Ms. Tatiana Veller, Managing Director of HVS and the panelists Mr. Pavel Elnikov, Senior Associate Hospitality and Leisure Practice of DLA Piper, Ms. Marina Usenko, Director Acquisitions & Development, Russia, CIS & Baltics of Starwood Hotels & Resorts and Mr. Sergey Stashkov, General Director of BS Hospitality Management were talking about the pitfalls and challenges in the hospitality sector and how to avoid and overcome them. The mistake that newcomers of the market often do is to come to the developer without the prepared ideas. Also, how design stage can be stretched to great lengths if not properly planned. The normal period of project realization is 4-5 years. A risk that the owner has to deal with is to find ground for the hotel building. If the hotel is built in the wrong place or with a wrong design, it’s hard for the operators to manage it.
When the last networking break was finished, Mr. Kirill Irtyuga, CEO of Rosinvesthotel gave his insights and view points as a local player of the hotel market in Russia. He shared his opinion regarding the hospitality industry and its possibilities.
Mr. Vadim Prasov, Managing Partner of Alliance Hotel Management and Vice-President of Russian Federation of Restaurateurs and Hoteliers, gave the last keynote speech of the conference. He spoke about the government initiatives and policy and informed everyone on what kind of governmental support exists in the real estate and hospitality sectors in Russia. Furthermore, he treated the concerns regarding the lack of room space during the upcoming sports championships.
The conference finished with a very interesting discussion panel. It was led by Mr. Vadim Prasov, Managing Partner of Alliance Hotel Management. With him, Mr. Evgeniy Makarov, Real Estate Management Director of Rosa Khutor / Interros and Mr. Sergey Kolesnikov, Director General of Gost Hotel Management participated and they discussed ways to guarantee success in the Russian hospitality industry. The upcoming Olympic Games in Sochi is good for the image of the country and some hotels are already active. Also, the football championship will play a big role in the new hotel projects. The panelists treated the myths about corruption and mafia in the hospitality sector. For the future growth, the business needs to develop and needs to be creative.
Mr. Cameron Sawyer from GVA Sawyer, as the Chairman of the second day conference, gave brief on highlights of the day and ended with closing remarks.
We would also like to extend our gratitude to all delegates for their active participation. Their questions spoke to the heart of the main issues facing the Hotel Industry.
Noppen would like to express a special thanks to the sponsors of the Russia Hotel Expansion Summit: Diversey, CIAT, Airwell Group, TP Vision-Philips, Grundfos, Nalco, Grohe, Legrand, Technogym, GEA, Motorola Solutions, AHI Carrier, Primus, Tiger TMS, Hibox, Fantini, Ideal Standard, Mitsubishi Electric, Allegrini, Tylo and Ebmpapst for their contribution in making this event a success.
Numerous hotel chains have announced ambitious expansion plans for the coming years and every month new developments and projects are published. The official figures tell that by 2018, the number of international hotel groups will increase from 89 to 215.
Noppen’s Russia Hotel Expansion Summit gathered high-level executives, government representatives, industry experts and market leading solution providers in a focused two-day program designed to enhance business. Panel discussions and presentations elaborated on future strategies, operations efficiency and updated technologies required for guaranteeing customer satisfaction and success.
The Chairman of the 1st conference day, Ms. Olga Arkhangelskaya, Partner, Head of the Real Estate, Transportation, Infrastructure and Government & Public Sector in the CIS of Ernst & Young, opened this event with the welcome speech and highlighted that Russian hotel sector is very much developing and the investors are very keen for the hotel projects engagement. She captured everyone’s attention throughout her speech and shared her comments with the public.
First presentation was given by Mr. Richard Tibbott, Chairman Advisory - Development Consultancy and Hotels of Cushman & Wakefield. He provided a broad outlook of Russian hotel development updates, trends, expectations and opportunities. He drew attention to the importance of creating destinations to have successful visitor experience. Furthermore, Mr. Tibbott discussed some projects and expansion plans in major and smaller Russian cities. He also emphasized that there are even bigger things to come yet in this industry and this is not the end in terms of development.
Hereafter, the audience welcomed Mr. Darren Blanchard, Senior Director Business Development of Carlson Rezidor Hotel Group. He gave an overview of the group’s future plans & past experiences on hotel development in Russia. Their projects are rapidly shifting up. The industrialized cities are the target for the hotel group, but they’re planning to go more East in the future. It’s all a stepped process. Mr. Blanchard shed light on how important it is to have control to be able to manage a property.
Mr. Wilco van Burgsteden, European Marketing Director Hospitality & Commercial Laundry of Diversey, part of Sealed Air, shared with the participants the possibilities of enhancing customer satisfaction by demonstrating the importance of cleanliness. To uphold client’s expectations, it is crucial to provide efficient integral hygiene solutions.
The following keynote speech was given by Mr. Igor Dyadchenko, Development Director Russia & CIS of Hilton Worldwide. He briefly spoke on the history of the hotel group and the projects they are planning to realize in Europe and specifically in Russia, which the group considers as a strategic development market. Hilton Group has a focused brand strategy.
Next was the presentation of Mr. Oliver Reis, Member of the Board and Sales Director Projects Russia & CIS of Grohe. He showed the audience different equipment the company supplies to the hotel sector and their equipment is based on ‘green solutions’, leading to optimal use of water and energy.
Mr. Anatoly Kondratenko, Senior Director Acquisitions & Development, Russia, CIS & Baltics of Starwood Hotels & Resorts captivated everyone with his talk on the move to the Russian regions. He explained enthusiastically how and why international hotel operators are recently expanding in the regions. He also focused on the important movers and highlighted on the Starwood plans.
After the lunch break, the company CIAT gave a workshop on closed door for the exclusive invitees. Mr. Alexei Guervetovski, Sales Development Director of the company illustrated how the CIAT solutions are taking care for the climate comfort in the hotels.
Mr. Roman Marikhbein, Segment Manager CBS Segment of Grundfos, informed the participants regarding their pump system solutions for hotels and clarified how their technology ensures the guests stay comfortable at hotels.
The panel discussion that followed, was led by Ms. Elena Lisina, Director of Cushman & Wakefield, with the participation of Mr. Mikhail Terekhov, Senior Technical Expert of AHI Carrier, Mr. Denis Akimov, WNS Business Development Manager, Russia and CIS of Motorola Solutions, Mr. Alexander Pushkarev, General Manager of OM ID, Mr. Adrian Salter, General Director of MEP Engineering and Mr. Timur Radjabov, Senior Project Manager, Technical Services of Carlson Rezidor Hotel Group. They discussed how new and exclusive technologies can increase performance and profitability and how these solutions can be integrated into the Russia’s hotels. Subjects as Wi-Fi, green buildings and energy saving also came on board along with application of the technology as per the place of the hotel, the building itself and the regional standards.
Hereafter, the audience was enlightened by Mr. Andrej Panov, District Manager, Light Industry of Nalco. He showcased the capabilities of Nalco in water and energy management for lodging. They quantify the impact through Environmental Return On Investment (e-ROI).
When the last networking break of the day was over, Mr. Rustam Dominov, Director of Hotel Construction Department of the company STEP, gave an interesting presentation discussing his experiences during the renovation projects of hotels which were constructed in the Soviet Period. There are still a lot of Soviet hotels that need to be reconstructed. Mr. Dominov also made a comparative analysis between the new construction and reconstruction. The public afterwards had queries for him regarding the architecture and technical conditions.
Post this, the panel discussion took place, moderated by Mr. Mikhail Mandrigin, General Director of Aukett Fitzroy Vostok. The panelists were Mr. Anton Nadtochiy, Co-founder of Atrium, Mr. Alexei Ilin, Head of the Projects of SPEECH Tchoban & Kuznetsov, Mr. Alexander Balabin, Managing Partner of SEVERIN GROUP and Mr. Alexander Zhukov, Founder of Alexander House. The discussion concerned the opportunities and the challenges of big and small hotels. Everyone was asked to give their own definition of boutique hotel. For a boutique owner, the term ‘family’ was the most important. The others said that ‘boutique’ depends on experience, it’s an effective way of operating a hotel and it consists of high design.
After the last session, Ms. Olga Arkhangelskaya, the Chairman of the first conference day, ended the day by giving some closing remarks where she focused on a lot of interesting possibilities in the Russian hotel sector.
Mr. Cameron Sawyer, Chairman of the Board of Directors of GVA Sawyer, was the Chairman of the second conference day. He summarized shortly the topics which were discussed the day before and warmly welcomed the speakers and the participants to enjoy some more exciting presentations and panels during the second day.
The opening presentation was from Ms. Irene Engel, Partner at CMS. She provided the audience with the overview of legal framework of hotel business in Russia. She explained the international principles; where after Ms. Engel went in-depth on specific laws of Russia.
Following that presentation, Mr. Philippe Bone, Director of Development Russia & CIS of Accor told about the hotel group, its brands and about development strategies they’re defining in Russia. Mr. Bone also showcased an environment analysis, highlighting country’s opportunities and mentioning country’s risks. Russia is a growing country with strong potential.
Mr. Peter Vinke, Director International Key Accounts, Healthcare TV & Marketing of TP Vision- Philips Hospitality TV, accentuated innovative hospitality TV. He introduced smart TV, which contributes to cost efficiency in installations and recurring revenue.
After the tea break, Ms. Leila Urazbaeva, Senior Banker at EBRD, clarified the attendees on financial difficulties and risks of hotel project engagement. She explained how to select the right financial model with appropriate return on investments and a fair balance of risk / reward.
The panel discussion about enhancing win-win for investor/developer/operator was led by Mr. Stephane Meyrat, Managing Director of Bevelia Hospitality Group. The participants who joined to share their insight were Mr. Denis Gaevski, Head of Long Term Financing and Real Estate at Bank of Moscow, Ms. Leila Urazbaeva, Senior Banker at EBRD, Mr. Philippe Bone, Director of Development Russia & CIS of Accor and Mr. Cameron Sawyer, Chairman of the Board of Directors of GVA Sawyer. They discussed the ways of attracting the investors and helped the audience understand how the banking sector works. As for example, banks require sponsor guarantee and Russian regional banks are easier to turn as it is risky for the international banks.
Ms. Fedra Mainetti, Hospitality Key Account – EMEIA of Technogym gave a speech about wellness in hospitality. She explained about the three pillars of Technogym: innovation, technology and design. She also highlighted the existing market trends such as word-of-mouth, where consumers continue to trust other consumers not companies. Technogym’s approach is to engage guests with an unforgettable wellness experience at any moment of their stay.
Mr. Pavel Barannik, Commercial Director of Legrand, presented company’s electrical and digital innovative solutions for hospitality buildings. Legrand has solutions for each area in the hotel. Mr. Barannik showcased the way they increase guest experience: through design, through technology and access to all. For Legrand, it’s a priority to help improve the service and to raise customer satisfaction.
After enjoying the lunch, the participants were excited to listen to the keynote speech of Mr. Sergei Tchoban, Managing Partner / Architect of SPEECH Tchoban & Kuznetsov. He talked about the importance of architectural touch and design fitting in hotel projects and mixed-use complexes. Mr. Tchoban described a hotel project as a magnet that attracts clients, operators, etc. Hotel must be a center place of meeting people and networking, where everything has to fit together. He also tries to avoid use of technics on the roofs where they are easily visible.
Here following, Mr. Alexander Balabin, Managing Partner of SEVERIN GROUP, enlightened the value of exterior and interior design of the hotel buildings. He immediately started with the expression: there is no second chance to make a first impression. Mr. Balabin showed examples of the projects and shared his insight with the audience.
During the next discussion panel, the moderator Ms. Tatiana Veller, Managing Director of HVS and the panelists Mr. Pavel Elnikov, Senior Associate Hospitality and Leisure Practice of DLA Piper, Ms. Marina Usenko, Director Acquisitions & Development, Russia, CIS & Baltics of Starwood Hotels & Resorts and Mr. Sergey Stashkov, General Director of BS Hospitality Management were talking about the pitfalls and challenges in the hospitality sector and how to avoid and overcome them. The mistake that newcomers of the market often do is to come to the developer without the prepared ideas. Also, how design stage can be stretched to great lengths if not properly planned. The normal period of project realization is 4-5 years. A risk that the owner has to deal with is to find ground for the hotel building. If the hotel is built in the wrong place or with a wrong design, it’s hard for the operators to manage it.
When the last networking break was finished, Mr. Kirill Irtyuga, CEO of Rosinvesthotel gave his insights and view points as a local player of the hotel market in Russia. He shared his opinion regarding the hospitality industry and its possibilities.
Mr. Vadim Prasov, Managing Partner of Alliance Hotel Management and Vice-President of Russian Federation of Restaurateurs and Hoteliers, gave the last keynote speech of the conference. He spoke about the government initiatives and policy and informed everyone on what kind of governmental support exists in the real estate and hospitality sectors in Russia. Furthermore, he treated the concerns regarding the lack of room space during the upcoming sports championships.
The conference finished with a very interesting discussion panel. It was led by Mr. Vadim Prasov, Managing Partner of Alliance Hotel Management. With him, Mr. Evgeniy Makarov, Real Estate Management Director of Rosa Khutor / Interros and Mr. Sergey Kolesnikov, Director General of Gost Hotel Management participated and they discussed ways to guarantee success in the Russian hospitality industry. The upcoming Olympic Games in Sochi is good for the image of the country and some hotels are already active. Also, the football championship will play a big role in the new hotel projects. The panelists treated the myths about corruption and mafia in the hospitality sector. For the future growth, the business needs to develop and needs to be creative.
Mr. Cameron Sawyer from GVA Sawyer, as the Chairman of the second day conference, gave brief on highlights of the day and ended with closing remarks.
We would also like to extend our gratitude to all delegates for their active participation. Their questions spoke to the heart of the main issues facing the Hotel Industry.
Noppen would like to express a special thanks to the sponsors of the Russia Hotel Expansion Summit: Diversey, CIAT, Airwell Group, TP Vision-Philips, Grundfos, Nalco, Grohe, Legrand, Technogym, GEA, Motorola Solutions, AHI Carrier, Primus, Tiger TMS, Hibox, Fantini, Ideal Standard, Mitsubishi Electric, Allegrini, Tylo and Ebmpapst for their contribution in making this event a success.
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