IHG stamps its authority firmly on the mid-scale hotels segment
As one of the top executives of IHG, one of the key companies on the Russian hotel industry, how you characterize the Russian hotel market today?
The Russian hotel market, like the country itself, is split into different areas: Moscow, St. Petersburg, regional capitals, other main cities and resorts. Of course, the most mature market is in Moscow, which, apart from the old and worn-out Soviet hotel inventory, today boasts several modern internationally and locally branded hotels.
How would you assess the company’s current position in the industry and its performance since it came to Russia?
We have opened four Holiday Inn hotels with approximately 1,300 rooms in Moscow. That represents about 25% of the branded-hotel market, and we are the leading brand in the mid-scale hotels. We are about to open more new hotels this year in Moscow and Samara, and have already signed contracts fo
r hotels in St. Petersburg, Chelyabinsk and Novosibirsk.
Why are most of IHG’s operations currently concentrated in Moscow?
Moscow is the capital and the indisputable center of the Russian economy. That is why we have started here. As you can see from the answer above, we are now expanding to St. Petersburg and other regional capitals as well.
Is this current position of IHG in Russia commensurate with its global potential and vision for the Russian hotel market?
We are in the position we expected to be at the moment in this industry, and we are continuing to do our work according to our strategic plans.
Based on your observations so far in this country, what would you say is unique about doing business in Russia in general and the hotel industry in particular?
Some of the laws that govern the hotel business were enacted in the Soviet era. Since then, the hotel business has moved on, and sometimes, there are conflicting rules, regulations and interpretations of legislative norms by different authorities. Besides, the hospitality industry has only recently become a “serious career option” for young people making professional career choices. It is, therefore, difficult, though not impossible, to find people, who completely meet the demands of the service industry that are ready to work hard, be responsible for their actions and show due respect to their colleagues and customers.
The level of competition in the Russian hotel industry is constantly rising for many reasons. Which unique services are being offered by IHG hotels to stay ahead of its competitors?
We offer strong brands, dedicated management and the attitude that does not value the “color” of the passport, but the skills and attitudes of people. We are continuously updating our brands and standards and have established a Russian legal entity to help us serve our customers and investors better.
IHG currently has several successful projects in Moscow. Is there a particular project, which really stands out from the rest — maybe, for its size, services, amenities, location, etc?
I must say that close to my heart is the Holiday Inn Vinogradovo, as the first Holiday Inn in Russia, and, of course, the Holiday Inn Sokolniki for its size, large number of services and professional staff. 
In your opinion, how does the IHG’s current level of performance in Russia compare with those of other countries, say, in Eastern Europe?
It is very difficult to compare different countries with one another and we prefer to compare our hotels with other hotels in the same marketplace to get a benchmark. Our hotels have been very successful on the Russian market and are fulfilling the expectations of the customers and owners alike.
If it is not a commercial secret, how much has IHG invested in Russia so far, and how much more does it plan to invest in the country in the near future?
We have no direct investments, but have given loans to owners and also negotiated certain conditions to support our hotels’ owners in difficult situations, like the 1998 ruble crisis.
What are IHG’s plans for the other CIS states?
We have signed hotel projects in Ukraine and are already operating hotels in Kazakhstan. Besides, we are under negotiations with several Russia’s neighboring countries.
IHG Brands*
|
No. |
Brand |
No. of Hotels |
No. of Rooms |
| 1 |
Holiday Inn Express |
1,590 |
133,554 |
| 2 |
Holiday Inn Hotels & Resorts |
1,435 |
267,816 |
| 3 |
Crowne Plaza Hotels & Resorts | 235 | 65,404 |
| 4 |
InterContinental Hotels & Resorts
| 137 | 46,262 |
| 5 |
Candlewood Suites | 112 | 12,683 |
| 6 |
Staybridge Suites
| 87 | 9,915 |
| 7 |
Hotel Indigo | 3 | 497 |
|
Total | 3,599 | 536,131 |
*Brands listed by number of hotels
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