Sleeper Russia

HOTEL DESIGN, DEVELOPMENT & ARCHITECTURE

SWISSÔTEL KAZAN

A new dawn for Swissôtel in Atkinsdesigned Riviera Tower on Kazanka River

FAIRMONT BAKU

Awe-inspiring interiors for Azerbaijan’s landmark Flame Towers

SOCHI 2014

Russia poised for Olympic glory

Delano – Moscow 11 Mirrors – Kiev Orbital Technologies Space Hotel

www.sleepermagazine.com

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E M O WELC W

elcome to this special edition of Sleeper, the third in our series of supplements focusing on hotel design, development and architecture in the emerging markets. As with Sleeper India and Sleeper China before it, we have chosen to dedicate an entire issue to this region thanks to its advanced economic development and, more significantly, its increased importance to the hospitality industry.

It is only since the turn of the century – a decade after the fall of the Soviet Union and around the time Russia was granted BRIC status – that the world began to take notice of this region.

Political reforms, industrial stability, and ongoing infrastructure upgrades have all played their part in improving Russia’s image to the outside world, making it a more attractive proposition for investors, developers and hotel groups.

Interest reached a new high when Russia was announced as host for the 2014 Winter Olympics and 2018 FIFA World Cup, and it became clear that there was a chronic undersupply of hotel rooms for the predicted increase in demand. The sheer scale of opportunity was brought home by Horwath HTL’s Managing Director Michael O’Hare, speaking at the Russia & CIS Hotel Investment Conference in 2012. He revealed that the whole of Russia has only a few more internationally branded hotels than the comparatively miniscule city of Dublin in Ireland. As a result, a proportion of this supplement is dedicated to hotel groups and their commitment to building a presence here. In addition to the latest project announcements, you will also find reviews of the most recent openings, plans for a lasting legacy at Sochi, current market performance, and advice on doing business in this part of the world. We hope you enjoy reading this issue of Sleeper Russia & CIS, and as always, welcome your feedback.

CONTENTS 04 Introducing Russia & CIS 06 Drawing Board 14 The Brand Race 20 A New Dawn: Market Overview 24 Challenges & Opportunities 26 Fairmont Baku 30 11 Mirrors, Kiev 34 Sleepbox Hotel, Tverskaya Russia 38 A Guide to Doing Business 42 Sochi 2014: A Lasting Legacy?

47 Events 48 Specifier 50 Check Out

Catherine Martin, Supplement Editor

FRONT DESK Supplement Editor Catherine Martin c.martin@mondiale.co.uk

Advertising Sales Stephen Quiligotti s.quiligotti@mondiale.co.uk

Design & Production Dan Seaton d.seaton@mondiale.co.uk

Finance Director Amanda Giles a.giles@mondiale.co.uk

Editorial Director Matt Turner m.turner@mondiale.co.uk

Advertising Sales Becky Thomas r.thomas@mondiale.co.uk

Design & Production Dave Bell d.bell@mondiale.co.uk

Accounts Donna Barlow d.barlow@mondiale.co.uk

Editorial Assistant Shanna McGoldrick s.mcgoldrick@mondiale.co.uk

Advertising Sales Rob Hart r.hart@mondiale.co.uk

Design & Production Mel Robinson m.robinson@mondiale.co.uk

Accounts Faye Riley f.riley@mondiale.co.uk

Chairman Damian Walsh d.walsh@mondiale.co.uk

Publishers: Sleeper Magazine Ltd, Waterloo Place, Watson Square, Stockport, SK1 3AZ, UK • Tel: +44 (0)161 476 8390 • Fax: +44 (0)161 429 7214 • www.sleepermagazine.com • Printed By Buxton Press

03

INTRODUCING RUSSIA & CIS

S I C & A I S S RU

rld, in the wo s ie m o n o ew hotel owing ec N r . g s t e s g e n t a s h nt c a of the fa g significa spots on in t With one o o g h r e ’s d n n io e reg IS are u . nced in th u Russia & C o n n to be had a s e r ie a it s n t u n t r e oppo developm re are still e h t t u b , daily basis asily have it could e

ew in 1991, arked a n collapsed y rl la u c stead, it m ta In c s. e c li sp b n nio w th. er R epu e Soviet U t and gro the form y When th elopmen many of v r e d blished b fo , a r e st rm e st isa for refo IS) was y e to (C it s in n spelled d u te ra k rt ta U o S tion, and pendent g: an opp e ra in d e n d In ic in e f g F m o e b lth ussian d econo monwea rus, the R social an la e e B r th The Com f e o to c rm d ubli late ach fo f the Rep g issues re d while e e leaders o entity, th r discussin states. An t fo n e m n d a n ru e re d id fo p u e a lt d e u c in id , v e ly pro n ew r, trad ent of the wn powe ia, have its o developm to ion. s g e re g Armen u e n conti unite th s includin te n an d to a g ta st n is r Republic k e ro ji ssia, Ta l m e mb u stands st ia R c n , o a ffi v ti o o ia e c ld asso re nin e mb e r an , M o t, there a nofficial m hich , Kyrgyzst u n e a st th h At presen k re a ia, w s, Kaz ment a er Georg n, Belaru is supple e r m e mb Azerbaija ded in th rm lu c fo in d n o a ls ine, n. A CIS. l and Ukra Uzbekista with the s of hote menistan grouped l rk il u y in term T st f rl n o la e s u fair ft ic s o rt it is a state s t p a u , h b n , ia e regio d. Russ in 2008 th rl f w o o re w rt d ver e a h o p f th it t w ntr y in lation o significan rgest cou h a p opu it la w e t with The most e s th Y ie , . it ia ls are 34 c nal hote t, is Russ o n re e e ti a m th p rn t c lo te deve pulated er of in ies, in fa arsely po zeable cit rt a numb sp o si f p st o p o su re m a sh se in the of the t could ia is one most den a size tha ss is u n R , o n ti rsburg. o la li u 500,00 – d St. Pete f 143 mil the pop n , o a d n w o te o c ti e sc la p o an d nd M a p opu rld. As ex lopment, ring arou in the wo s of deve tr y, cente u n c u ps are fo o u countries c e ro e g th l part of th ve been re, hote a e n h h a s e d dly p ie e c it ro n c Eu est ndoubte ann o u ussia’s larg Sochi is u cts being s. je r g a te ro fl p in ir w To date, R W e l ne ming plant th re are stil e forthco gions to th f re o d g e while the . p in d p s host vgoro the unta ank s to it izhny No nificant looking to rg, and N e radar th u th b seen a sig n n y ri o d te a is a e t k lr a e a Y th ile s , a y n h it a c z , n a Ka 2012 wh erbaija so too are Contest in aku in Az ent. g B , n m n o p S io lo n g e Olympics, v io in the re ture de Eurovis fu e re r e th h fo f w o ts e g o ls E otsp s hostin ht to be h ank s to it are thoug n grow th th a st h k a nd K a z Georgia a

St. Petersburg

BELARUS Minsk

Moscow

MOLDOVA Chisinau

04

Volgograd Rostov-on-Don

UKRAINE Kiev

Sochi

GEORGIA Tbilisi ARMENIA Yerevan AZERBAIJAN Baku

Nizh Novg

rg

Nizhny Novgorod

Perm

Vladivostok

RUSSIA

Kazan

Yekaterinburg Chelyabinsk Ufa Samara

Omsk

Novosibirsk

KAZAKHSTAN Astana

KYRGYZSTAN Bishkek UZBEKISTAN Tashkent TURKMENISTAN Ashgabat

TAJIKISTAN Dushanbe

05

DRAWING BOARD

THE DRAWING BOARD MOSCOW // KAZAN // CAUCASUS MOUNTAINS // KIEV

Delano Moscow, Russia Morgans Hotel Group has announced plans to expand into Russia with the opening of Delano Moscow in 2015. The 160-key hotel will form part of Capital Group’s OKO development, designed by SOM (Skidmore, Owings and Merrill).

This announcement is the latest progression in the New York-based hospitality management company’s extensive international growth plan for its luxury Delano brand, focused on entering key markets around the world.

Delano will be situated in the heart of Moscow’s new state-of-the-art International Business Center, also known as Moscow City. The 4.5 million m2 development comprises mixed-use skyscrapers combining high-end residences, offices, entertainment and retail.

Designed by American architectural bureau SOM, OKO will feature an 85-storey skyscraper and a 49-storey office tower that soar from a transparent crystalline structure at its base.

Plans for Delano Moscow include 160 06

beautifully appointed guestrooms, extensive fine-dining and nightlife outlets, and top-of-theline facilities. The world-class boutique resort will provide an upscale haven of luxury within the vibrant Moscow City development, appealing to the sensibilities of tastemakers around the world.

With the addition of Delano Moscow, Morgans Hotel Group has now signed management agreements for ten hotels slated to open over the next three years, including Delano Cesme, and the all-suite Delano Las Vegas. In aggregate, these new hotels will nearly double the size of the group’s portfolio from thirteen hotels comprising 3,400 rooms across three countries, to twentythree hotels comprising 6,300 rooms across seven countries. CEO Michael Gross comments: “With the introduction of each new Delano property, we bring to life the ethos we created in South Beach, while uniquely blending our vision with the markets we enter. Moscow is an exciting city and we could not have found a better partner to align with than Capital Group to further extend the Delano brand.”

DRAWING BOARD

Swissôtel Riviera Tower Kazan, Russia Swissôtel Hotels & Resorts and Riviera Tower Limited Liability Company have signed a management contract for a 211key hotel housed in a new Atkins-designed tower on the banks of Kazanka River.

Scheduled to open in 2016, Swissôtel Riviera Tower Kazan will help the international hotel group with Swiss roots reinforce its footing in the Eastern European market.

Located 800km East of Moscow, Kazan is the capital of the Republic of Tatarstan and home to 1.2 million inhabitants. The city is divided in two parts, each with their own character. While the area around the Kremlin is historic with a wide range of cultural sights on offer, the new part of the city – where Swissôtel will be located – is the business and banking district.

Designed by Atkins, the 60-storey 08

skyscraper is set to dominate the Kazan skyline. It will incorporate the hotel and its facilities, as well as 340 residential apartments and some 7,000m2 of commercial office space.

The building meets the ground with a sloping podium, which will become a public plaza comprising a retail mall and 1,500m2 Pürovel Spa & Sport complex with indoor and outdoor recreational facilities.

A ballroom, conference space, and various restaurants round off the package. The top three floors of the tower – the highest point in Kazan – take the form of a spectacular viewing gallery and restaurant that will be open to the public.

The new hotel will follow the lead of Swissôtel Krasnye Holmy in Moscow and offer the Swiss brand a base in another significant Russian city. “Our hotel group

has had a presence in Moscow for years and we have established an excellent reputation here,” explains Meinhard Huck, President of Swissôtel Hotels & Resorts. “The new hotel in Kazan will join the two deluxe hotels we plan to open in Sochi in 2013 and our existing hotel in Moscow, and represent a perfect addition to what we feel is a key Eastern European market.”

Ivan Voitko, General Manager of Riviera Tower LLC adds: “The infrastructure of Kazan is improving every day and the new complex with the state-of-the-art five-star hotel under the Swissôtel brand will become another significant element in the city strategy of advancement and development, and will contribute to a greater disclosure of touristic potential of the region.”

Construction of the hotel is expected to begin this year.

Northern Caucasus Resorts Southern Russia OJSC Northern Caucasus Resorts (NCR) has unveiled plans for a network of ski resorts across Southern Russia that will collectively accommodate 167,000 guests by 2025. The development, the largest mountain tourism project in the world, is scheduled to open in phases with the first stage completed by December 2015.

Stretching 1,200km from the Black Sea to the Caspian Sea, the Caucasus Mountains will become home to a US$30 billion project expected to attract 3.5 million tourists per year. The development involves the creation of five world-class ski resorts and 120km of beach recreation, as well as health and wellness resorts offering a variety services to establish a year-round destination.

Northern Caucasus Resorts has been established by the Russian Government to

manage the project, which features over 1,000km of ski runs. The hotels, apartments and villas of varying comfort levels will accommodate 167,000 people with the daily capacity of the resorts reaching over 172,000 people. It is also expected that 75,000 jobs will be created in the region.

The project is being financed by a publicprivate partnership, with developments secured by both local and foreign investors.

Russia’s largest banks, Sberbank and Vnesheconombank, have also been named as partners.

To cope with the influx of tourists, investment in transport and infrastructure is seen as key. Six regional airports are being expanded while four new airfields are under construction. NCR is also considering the establishment of a regional airline, and implementation of a high-speed rail service.

To capitalise on international know-how in the mountain tourism sector, NCR has set up a partnership with Caisse des Depots et Consignations (CDC) in France, and Korean Western Power, the Korean market leader in the production of green energy.

A number of architecturally-sensitive hotels are currently under construction in the key resort sites of Lagonaki (Krasnodar Territory, the Republic of Adygea), Arkhyz (the Karachay-Cherkess Republic), ElbrusBezengi (the Republic of KabardinoBalkaria), Mamison (the Republic of North Ossetia, Alania), Matlas (the Republic of Dagestan), Tsori and Armkhi (the Republic of Ingushetia). Beach resorts on the coast of the Caspian Sea (the Republic of Dagestan) and balneological facilities in Kavkazskie Mineralnye Vody (the Stavropol Region) are also in the pipeline.

09

DRAWING BOARD

Renaissance Kiev Hotel Ukraine Marriott International has announced that it will open its first hotel in Ukraine, the 173-room Renaissance Kiev Hotel, under a management agreement with Subsidiary Enterprise Grand Plaza.

The hotel is expected to open mid-2013 following an extension and renovation of the existing historic building, formerly known as the Leipzig Hotel. The striking renaissance-style building is a well-known landmark in the heart of Kiev, Ukraine’s capital city and the economic, political, and cultural centre of the country.

Located on the corner of famed Volodymyrska and Prorizna Streets, facing Golden Gate Park, the hotel boasts 173 elegantly appointed guestrooms and a rich offering of authentic dining experiences, including a specialty and casual restaurant, 10

as well as lobby bar. The hotel also features business facilities and a fitness centre. The historic property will be restored to its former glory, bringing the distinct look and feel of the Renaissance Hotels brand to the dynamic city of Kiev.

UK-based design consultancy, Alexander James International, was commissioned to produce the interior design scheme for the hotel’s refurbishment and extension.

According to the firm, the concept was developed according to key principles that define the brand, however by challenging the initial layouts provided a number of value-added initiatives have been introduced demonstrating commerciallyoriented design solutions. On the top floor, a new Presidential Suite is being created in previously allocated plant space, while an additional guest lounge – dressed as a

library – will be developed from the public toilets. The projected potential revenue from these spaces is expected to recover costs within a matter of months.

The new hotel will also introduce the brand’s signature programs, including its R Navigator lifestyle hospitality concierge service and the award-winning RLife LIVE entertainment program which showcases the best of emerging local talent.

“We are thrilled to be adding our first hotel in the Ukraine,” comments Amy McPherson, President and Managing Director of Marriott International in Europe.

“As we continue to expand throughout Eastern Europe, we are excited to enter exciting new locations like Kiev, which offer both stunning natural beauty, as well as a fascinating mix of old and new, rich history and culture.”

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DRAWING BOARD

Hotel Nikol’skaya Kempinski Moscow, Russia Kempinski has confirmed that its second property in Moscow, the Hotel Nikol’skaya Kempinski designed by Leo International Design Group, will open its doors in Q2 2013.

Set to become a new landmark for the Russian capital, the hotel is located within a complex of historical buildings currently under reconstruction.

Erected in the 1870s, the building has a rich history: until the early years of the 20th century it was the residence of Count OrlovDavydov.

The hotel has an unrivalled location, just a few minutes walk to Red Square and the Kremlin, the Bolshoi Theatre, and Russia’s most famous department store, GUM. The historic façade has been lovingly preserved, and the decorative mosaic by French 12

architect Edouard Niermans in 1907 partially saved. When complete, the hotel will feature 210 spacious guestrooms including two Presidential Suites with panoramic views across the city. The 250m2 suites are designed using a palette of gold, white and beige framed with gilded oak, marble, crystal and silk.

Dining options include three gourmet restaurants – MosaiK all-day-dining, A Tavola Italian Bistro, and Café Vendome – as well as a cigar lounge, a Latin-inspired rooftop bar, and the Orlov Lobby Lounge & Bar, crowned by a multi-coloured stained glass dome.

Extensive spa facilities include an indoor patio-style swimming pool, a relaxation area, ten treatment rooms, sauna, steam room and fitness centre. Rounding out the facilities is the business centre, meeting rooms and ballroom for up to 200 guests.

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21-02-13 09:19

THE BRAND RACE

THE BRAND RACE “Having a brand for a hotel is almost always beneficial, but putting an international brand name to your hotel in Russia could be invaluable,” say HVS. And with the vast majority of the region‘s largest cities having just one branded hotel to their name, the race is on.

INTERCONTINENTAL HOTELS GROUP IHG has made no secret of its commitment to growth in Russia, and has previously announced plans to have 100 hotels across Russia and CIS open and in the pipeline by 2020.

The group first entered Russia in 1998 when it opened the Holiday Inn Vinogradovo in Moscow. Now, it works with local investors to introduce managed and franchised hotels across the country, where there is a need for internationally branded hotels.

Most recently, IHG has signed a franchise multiple development agreement with Regional Hotel Chain, a portfolio company of VIY Management (VIYM), to develop 15 new hotels in Russia by 2019, which, when open, will double the size of IHG’s estate as it stands today, and will introduce the Holiday Inn Express brand to the region for the first time.

The 15 new Holiday Inn Express hotels will add approximately 2,250 rooms to IHG’s current Russia development pipeline of over 1,700 rooms across five properties.

The locations for the first two of these hotels are Chelyabinsk and Voronezh. Holiday Inn Express Voronezh – Kirova is due to open in the second half of 2014 and Holiday Inn Express Chelyabinsk – Central Station is scheduled to open in Summer 2015.

IHG’s Chief Executive Officer, Europe, Angela Brav said of the announcement: “This is a breakthrough for IHG in Russia. It marks the debut of the Holiday Inn Express brand there and, when the hotels open we will have doubled the size of our system as it stands in Russia today, making a significant step towards our ambition to be market leaders.”

IHG’s Chief Development Officer, Europe, Robert Shepherd adds: “Russia is a priority market for IHG in Europe. It is underdeveloped in terms of branded hotel rooms, one of the most prosperous economies in Europe and is a growing market for business travel 14

both internationally and between its many large cities. As Russia grows in economic importance, the introduction of the Holiday Inn Express brand will not only be important to meet local mid-scale demand in-country, where we know there is a significant supply gap, but also as part of a future strategy to capture inbound demand as a brand of choice.

We’re pleased to partner with VIYM, one of the most recognised hotel investment managers in the industry in Russia, and look forward to working with them as we expand.”

IHG HAS 13 HOTELS (3,894 ROOMS) OPEN IN RUSSIA, WITH ANOTHER FOUR HOTELS (1,673 ROOMS) IN THE PIPELINE. THROUGHOUT THE CIS, IHG HAS FIVE HOTELS (1,099 ROOMS) AND TWO HOTELS (455 ROOMS) IN THE PIPELINE, WHICH WILL OPEN IN THE NEXT THREE TO FIVE YEARS. The hotel group has also made corporate commitments to the region, with the introduction of a Managed Service Centre specifically for hotels in Russia and the CIS. The Moscow-based facility will deliver services that are essential to hotel operations but require specialist expertise, including: accounting, reservations, sales and marketing, procurement/ purchasing, revenue management, human resources, recruitment and training, IT, quality and compliance engineering.

IHG has also opened a Moscow branch of the IHG Academy to deliver international standard hospitality training in Russia. Vice President Operations, Russia, Commonwealth of Independent States and Georgia, Robert Kennedy, comments: “Our decision to establish such a centre underlines our commitment to growing in Russia and the rest of the CIS: one of IHG’s priority markets.”

HYATT HOTELS The latest news from Hyatt Hotels Corporation is the announcement of a management agreement with State Unitary Enterprise (Poytaht Qurilish va Xizmat) for a Hyatt Regency hotel in Tashkent, Uzbekistan.

Scheduled to open in January 2015, Hyatt Regency Tashkent will be a significant addition to the brand’s presence in the Commonwealth of Independent States where Hyatt Regency-branded hotels are currently open in Yekaterinburg, Kiev, Baku, Bishkek, and Dushanbe. In addition to Hyatt Regency Tashkent, there are currently five Hyatt-branded hotels under development in the CIS, including Hyatt Regency Sochi, Hyatt Regency Vladivostok Golden Horn, Hyatt Burny Vladivostok, Hyatt Regency Moscow Petrovsky Park, and Hyatt Regency Rostov on Don. “We are delighted by the plans for the first Hyatt-branded hotel in Uzbekistan,” said Peter Norman, Senior Vice President, Real Estate and Development, EAME for Hyatt Hotels & Resorts. “The CIS is establishing itself as both an international business hub and an attractive tourist destination, and we believe the Hyatt Regency brand and the enviable cosmopolitan location will attract international travellers visiting Tashkent.

Today’s announcement demonstrates our commitment to growing our brand presence in new markets.”

Elsewhere, Hyatt is set to enter the Republic of Armenia with its Hyatt Place brand, due to open in Yerevan.

Marriott International has signed a management agreement with CJSC Globus to open its first property in Novosibirsk, the 175-room Marriott Novosibirsk Hotel

MARRIOTT INTERNATIONAL Marriott International has announced it is to grow its Russia and CIS portfolio by over 50% to more than 30 hotels by 2015.

The group currently operates 19 hotels in the region across six lodging brands and has committed to opening an additional 11 hotels over the next three years. Most recently, Marriott has signed a management agreement with CJSC Globus to open its first property in Novosibirsk, the 175-room Marriott Novosibirsk Hotel, expected to open in 2014. Also in the pipeline is the 135-room Courtyard by Marriott Ulyanovsk.

The hotel, which will be built to the new European prototype, will operate under a management agreement with LLC New City and is expected to open in 2015.

Highlighting Marriott International’s commitment to the Russia & CIS market, Carlton Ervin, Chief Development Officer for Marriott in Europe comments: “We are very

focused on our development here and have augmented our development resources to enable us to meet our ambitious growth objectives for Russia and CIS. We see particular opportunity in the capital cities for our luxury and lifestyle brands including The Ritz-Carlton, EDITION and Autograph Collection, as well as great potential in the mid-tier segment for our Courtyard

by Marriott brand in regional cities across Russia.”

Further developments include: • The Ritz-Carlton, Almaty, Kazakhstan • Krasnodar Marriott Hotel, Russia • Tsaghkadzor Marriott Hotel, Armenia • Baku Marriott Amburan Beach Resort, Azerbaijan • Renaissance Kiev Hotel, Ukraine • Krasnoyarsk Marriott Hotel, Russia • Voronezh Marriott Hotel, Russia • Moscow Marriott Novy Arbat Hotel, Russia 15

THE BRAND RACE

FUTURE ROOM SUPPLY UNDER INTERNATIONAL BRANDS: In its International Hotel Brands in Russia 2013 survey, Ernst & Young name Accor as the future market leader.

Hampton by Hilton Volgograd City Centre is set to open in Summer 2014

24% 18% 15% 8% 6% 5% 4% 4% 3% 3% 3% 7%

Accor Carlson Rezidor Hotel Group Hilton Worldwide InterContinental Hotels Group Starwood Hotels & Resorts Marriott International Fairmont Raffles Hotels Hyatt Corporation Golden Tulip Hotels Kempinski Hotels Wyndham Hotel Group Other

HILTON HOTELS & RESORTS

ACCOR

In a further step towards achieving Hilton Worldwide’s ambition of establishing award-winning, mid-market accommodation in Russia’s regional cities, the company has announced plans for the introduction of three new Hilton Garden Inn hotels.

Accor has reaffirmed its ambitious expansion plans in Russia and CIS, maintaining its objective to reach a network of 50 hotels (over 10,000 rooms) in the region by 2016.

Located in Kaluga, Kirov and Krasnoyarsk, the three properties are all expected to begin welcoming guests by the end of 2014.

The trio will add almost 500 rooms to Hilton Worldwide’s rapidly expanding Russian portfolio, which now consists of 38 hotels and guestrooms in excess of 7,000 either operational or in the pipeline.

Patrick Fitzgibbon, Senior Vice President, Development, Europe & Africa, Hilton Worldwide, comments: “Many of Russia’s regional cities are emerging as significant economic centres and transit hubs thanks to the country’s rapid industrial growth and expanding transport infrastructure.

This makes cities such as Kaluga, Kirov and Krasnoyarsk ideal markets in which to 16

introduce our award winning mid-market brands due to the demand for high quality, value accommodation. I look forward to watching the development of these three latest hotels over the coming months.”

Hilton has also announced that the 160-room Hampton by Hilton Volgograd City Centre is set to open during the summer of 2014, while in 2012 it revealed its first hotel signing in Kazakhstan. Of the announcement, Fitzgibbon said: “We have been actively pursuing development deals in the central Asia / CIS region and are delighted to have signed our first hotel in Kazakhstan. We have seen rapid expansion in this part of the world, notably in Turkey and Russia, where our development pipelines are the biggest they have ever been. We look forward to further expanding our portfolio of hotels across the region.”

Showing its commitment to the region, a new report commissioned by Hilton Worldwide titled, Balancing Russia’s Tourism Deficit: A Report on the Future of the Industry, was released in 2012.

The group is targeting main cities and tier 2 cities in new markets such as Armenia, Azerbaijan, Georgia and Belarus.

Major milestones for 2013 include the opening of a Pullman hotel in Sochi, and the group’s first hotel in Kazakhstan’s capital City Astana through its Ibis brand.

Starwood is to enter Tajikistan with Sheraton Dushanbe, designed by Areen Hospitality

STARWOOD HOTELS & RESORTS In the next four years Starwood will nearly quadruple its portfolio in Russia and CIS with 11 new hotels in Moscow, St. Petersburg, Rostov-on-Don, Perm, Kaluga, and Krasnodar in Russia, as well as in Kiev, Ukraine and Ismayilli, Azerbaijan.

Building on Starwood’s first-mover advantage, the entry into Tajikistan with the opening of a new Sheraton hotel in the country’s capital city of Dushanbe will be followed by the launch of a Sheraton hotel in the emerging city of Aktobe in Kazakhstan.

Starwood’s third hotel in Moscow, the Sheraton Moscow Sheremetyevo Airport Hotel, will also open its doors as part of the Skypoint Business Park located 800 metres from the airport.

Last year, Starwood opened three new hotels in Russia and CIS, marking a number of key milestones, including the highly successful debut of the W brand in Russia with the opening of W St. Petersburg and the entrance of Starwood into Ukraine and Azerbaijan.

“Moscow has more billionaires than any other city in the world and yet Russia is seriously under-hoteled, with only 28 high-end hotels,” explains Simon Turner, President of Global Development & Acquisition, Starwood Hotels & Resorts. “Russia and CIS offer tremendous growth opportunities, especially within markets that do not have major internationally-branded hotels. We plan to expand our brands throughout the region in the years to come with development partners who have a proven track record of success and are looking for a new and exciting growth vehicle.”

Key highlights for Starwood over the next three years include: • The debut of Starwood in Kiev with the opening of Sheraton Kiev Olympiysky, Ukraine, in 2013. The hotel will be located Troitskaya Square, just steps away from famous Khreschatik Street and other city landmarks.

• The entry of Starwood into Tajikistan with the opening of a new Sheraton hotel in the country’s capital city of Dushanbe.

• Starwood’s second Sheraton hotel in Moscow with the opening of Sheraton Moscow Sheremetyevo Airport in 2013. This new 10-storey hotel will be part of the Skypoint Business Park, located 800 metres from the international terminal of Sheremetyevo Airport.

• The debut of Starwood in three emerging Russian markets with the openings of a Four Points by Sheraton hotel in Kaluga and a Sheraton hotel in Rostov-on-Don in 2014, followed by the opening of Sheraton Perm in 2015.

• Russia’s first Aloft hotel with the new Aloft St. Petersburg.

Scheduled to open in 2015, the hotel will be part of an emerging business district within close proximity to galleries, restaurants and green spaces, and will offer an entirely new approach to Russia’s mid-market category.

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THE BRAND RACE

AZIMUT HOTELS Not forgetting the regional hotel groups, Azimut Hotels is Russia’s leading mid-market operator by number of rooms.

It is also the fastest growing.

Founded in 2004, Azimut represents 20 hotels with over 5,500 rooms, and more in the pipeline. The group recently announced that in 2012, revenue increased by 8.6%, revenue per available room by 7.5%, and average daily room rate by 5.2%. It was also revealed that an investment of US$65m would go towards the renovation of properties in St. Petersburg, Ufa, Vladivostok, Voronezh and Murmansk, as expansion in Russia’s regions and the CIS. The group’s most recent opening, Azimut Moscow Tulskaya Hotel, was officially unveiled in December 2012. Designed by German firm Bruzkus Batek Architects, the 144-key property features a new lobby concept and smartgeneration guestrooms that will be rolled out over the next two years.

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Scheduled to open in Q2 2014, the 379-room Radisson Blu Sheremetyevo Airport Hotel, Moscow will be the only hotel featuring a direct walkway link to the international terminals

CARLSON REZIDOR The Rezidor Hotel Group, a member of the Carlson Rezidor Hotel Group, has unveiled designs for the Radisson Blu Sheremetyevo Airport Hotel, Moscow.

Scheduled to open in Q2 2014, the 379-room property will be the only hotel featuring a direct walkway link to the international terminals. The recently renovated Sheremetyevo Airport, the hub of Russia’s national carrier Aeroflot, serves more than 22 million passengers annually, and is set to grow further as it now has the largest capacity in Russia.

“This agreement further strengthens our position as one of the leading airport hotel operators in Europe. It also confirms our commitment to the Russian market where we are the leading international hotel operator,” comments Wolfgang M. Neumann, President & CEO of Rezidor. The group currently has 45 hotels with 11,600 rooms in operation in Russia, CIS & Baltics, and 29 hotels with 6,700 rooms under development.

Further properties in the pipeline include: • Radisson Hotel Zavidovo, Russia • Radisson Chelyabinsk, Russia • Radisson Blu Hotel, Kyiv, Podil, Ukraine • Park Inn by Radisson Yaroslavl, Russia • Park Inn by Radisson Volgograd, Russia • Park Inn by Radisson Nizhnii Novgorod, Russia • Park Inn by Radisson Novosibirsk, Russia

A NEW DAWN: MARKET OVERVIEW

A NEW DAWN MARKET OVERVIEW

The latest analysis from industry researchers points to a bright future across the region, particularly for international hotel groups looking to enter the budget and mid-market sectors, finds Catherine Martin.

A

t around the time the former Soviet states were embarking on a new era, so too was the region’s hotel industry. 1991 may well have marked the formation of the Commonwealth of Independent States, but it was also the year that the Renaissance Hotel – considered to be the first European standard hotel in Moscow – opened its doors.

A turbulent decade followed, with the major economic crisis of the Nineties hampering any signs of growth. Yet, the turn of the century brought new optimism as Russia was grouped with Brazil, India and China as a BRIC, highlighting its potential as one of the world’s fastest growing economies. A slowdown once again took hold during the 2008/2009, but as parts of Europe struggled to recover – and continue to do so – Russia was able to bounce back thanks to its reliance on the rising price of oil, and its future role as host of the 2014 Winter Olympics and 2018 FIFA World Cup, guaranteeing growth and investment.

The CIS as a whole has followed a similar trajectory, though it must be noted that although the region is often grouped as one, each former state has its own distinct character, agenda and future. Baku experienced its first major exposure to the world media in 2012 when it hosted the 20

Eurovision Song Contest, while soccer fans flocked to Ukraine for the UEFA European Football Championship.

That said, Russia is undeniably the key market and has been identified as such by industry experts. So why now? Since the turn of the 21st century, a dramatic rise in the middle classes, higher domestic consumption and greater political stability have bolstered economic growth in Russia. And of course it is impossible to talk about Russia without mentioning Sochi: the former resort town that is being transformed into an Olympic Park. The World Cup is perhaps more interesting in terms of development though, as it requires building hotels in secondary and tertiary cities where there is a chronic undersupply of rooms.

In addition to Moscow and St. Petersburg, the regional cities of Kaliningrad, Nizhny Novgorod, Kazan, Samara, Saransk, Volgograd, Rostov-onDon, Sochi and Ekaterinburg have been selected to host games during the tournament, and are already seeing increased interest from investors and hotel groups.

The culturally rich cities of Moscow and St. Petersburg continue to grow, leading Russia’s performance statistics for the most part. According to Cushman & Wakefield Hospitality, Moscow’s

hotel market has seen growth in operating performance for two consecutive years.

A 2012 end of year analysis reported an increase in RevPAR across all segments in Moscow, as well as a return to pre-crisis occupancy levels, despite new supply coming online.

On the flipside, some experts believe that Moscow – primarily a business destination – is missing out on the weekend leisure traveller. The city has been ranked as having the most expensive room rates in the world for the ninth year running, deterring many, plus a lack of low-cost air carriers and severe shortage of budget accommodation are also factors.

Elsewhere in the region, the past 18-20 months have seen a recovery from the crash of 2008/2009. HVS Moscow office recently released the 2013 Russia, CIS and Georgia Hotel Trends & Opportunities Report, in which hotels in 10 out of 12 reviewed markets exhibited positive occupancy growth. Yekaterinburg (22%), Tbilisi (12%) and Kazan (10%) observed a double-digit

increase in occupancy levels, while the remaining markets with positive growth only registered an average increase of 4.3%.

The report states that Kiev (-13.3%) and Baku (-12.7%) were the only two markets to show decreases in occupancy levels, which can partly be attributed to the significant number of new hotels entering the market during the year. In 2012, Kiev and Baku showed increases in supply of 24% and 44% respectively, which led to concurrent decreases in occupancy.

RevPAR performance in Euro terms was positive in seven of the markets, with Tbilisi (21.9%) and Kazan (21.3%) topping the table. Yerevan was the only other city to measure a double-digit increase in RevPAR at 10.4%. The report continues to say that Yekaterinburg (-11.4%) registered the highest drop in average rates, but this can partly be explained by the highest occupancy growth in the region (22.1%).

Samara (-8.8%) and Almaty (-8.3%) became good examples of cities that lost average rate owing to new hotels opening.

Despite economic turmoil in the region and continued crisis in the Eurozone, hotel development continued in 2012. According to HVS, supply increased by 10% with 65% of the new hotel rooms in the region opened in Kiev, Baku and Sochi. The number of proposed projects in the 12 surveyed markets (plus Sochi) is forecast to increase supply by approximately 50% in the medium term. Moscow continues to dominate the future pipeline with almost 40% of future supply, followed by Sochi.

Worthy of note is the southern city of Rostov-on-Don, a developing industrial and technological centre. Supply here is expected to increase by a massive 1,179% over the next five years thanks to the city being named as one of the hosts for the 2018 FIFA World Cup. Although Rostov is starting from a particularly low base rate of international quality accommodation, the statistic is cause for concern due to the city’s undeveloped tourism strategy and a threat of oversupply after the tournament.

Oversupply is not the only challenge 21

A NEW DAWN: MARKET OVERVIEW

Russia & CIS is facing. There are concerns that the Russian Government isn’t taking the travel and tourism industry seriously, due to the fact that its direct contribution to Russia’s GDP is just 5.9%, compared to 9.1% globally. In addition, according to the World Travel & Tourism Council (WTTC), travel and tourism supports just 1.4% of jobs in Russia, compared to a world average of 5.4%.

Lagging behind the other BRIC economies, Russia is the only emerging market not in the top ten of the capital investment list for travel and tourism, nor is it forecast to be.

This is typical across the CIS, with investment in the industry falling short of the world average.

According to Horwath HTL, there is enormous potential to develop hotels in Russia, but that potential continues to be hampered by bureaucracy and a regulatory framework that is not conducive to growth.

Lack of debt financing, lengthy timelines, lack of local expertise, staff shortages, and a complex visa procedure are just some of the issues facing developers and visitors. And with little money spent on promoting ‘Brand Russia’, the country is still trying to shake its perceived negative image.

But this hasn’t stopped some developers.

There are 21,302 guestrooms in the active development pipeline, or approximately 25.5% of existing supply, according to November 2012 data from STR Global.

International hotel groups make up the majority of the development, and a handful of smaller domestic brands are making headway too.

The new stock is expected to be absorbed with ease, as the region is nowhere near saturation – even in the more populous metropolises of Moscow and St. Petersburg.

According to HVS Moscow Senior Consultant Alexey Korobkin: “In terms of pipeline, Moscow continues to dominate in the region. Despite certain setbacks in hotel 22

development, many markets are again are becoming attractive to investors, which is reflected in the increase of the hotel pipeline on the Russian, CIS and Georgian markets.”

Michael O’Hare, Managing Director, co-founder and partner of Horwath HTL Hungary & Russia, believes there are boundless opportunities across the region: “Any of the larger regional cities in Russia would be my number one choice for midmarket and economy hotels,” he explains.

“There is also an opportunity to develop in seven or eight key cities in Kazakhstan, where to this day they don’t have any international hotels outside of Astana and Almaty.”

IN TERMS OF PIPELINE, MOSCOW CONTINUES TO DOMINATE IN THE REGION. DESPITE CERTAIN SETBACKS IN HOTEL DEVELOPMENT, MANY MARKETS ARE AGAIN ARE BECOMING ATTRACTIVE TO INVESTORS, WHICH IS REFLECTED IN THE INCREASE OF THE HOTEL PIPELINE ON THE RUSSIAN, CIS AND GEORGIAN MARKETS. Alexey Korobkin, Senior Consultant, HVS Moscow

With the majority of supply focused at the luxury end of the market, there is expected to be a gradual shift towards the development of mid-market and budget hotels. This sector is considered to be the real opportunity in hotel development in the region. Either way, whether it’s budget or luxury, in Moscow or Sochi, it is the hotel groups and their brands that will shine.

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CHALLENGES & OPPORTUNITIES

CHALLENGES & OPPORTUNITIES Russia and CIS have become key growth markets for international hotel groups, seeing them invest time and resources to establish a presence. But development is not without its challenges, leading some to question whether the region will grasp the opportunity and fulfill its potential.

AIR TRAVEL With a lack of low-cost carriers and shortage of direct flights between Russia and the rest of Europe, air travel is expensive.

Easyjet now flies daily between London Gatwick and Moscow and has recently started up flights from Manchester, but there remains huge potential for budget airlines, which will in turn fill hotel rooms.

STAFFING One of the biggest challenges for hotels groups will be in finding quality staff for the influx of new hotels. With plans to open 100 hotels in Russia and CIS by 2020, IHG has taken the issue into its own hands by opening a branch of the IHG Academy in Moscow.

Its three-year programme delivers international standard hospitality training and sees students spending four days a week in hotels from the IHG family of brands.

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EVENTS Russia is gearing up to host a number of sporting events beginning with the World Athletics Championships in August of this year, follothe 2014 Winter Olympics in Sochi, and the 2018 FIFA World Cup. The eleven host cities for the World Cup have been confirmed as Kaliningrad, Kazan, Moscow, Nizhny Novgorod, Rostov-onDon, Saint Petersburg, Samara, Saransk, Sochi, Volgograd and Yekaterinburg. The events have been the catalyst for hotel development in the region.

INFRASTRUCTURE Domestic tourism means that the most popular modes of intraregional transport are road and rail. A number of initiatives are under way – including a new highway between Moscow and Sochi – to improve tourists’ experience. Russian Railroads has also announced plans to launch high-speed rail services from Moscow to Sochi and Yekaterinburg by 2017.

ONLINE RETAIL Online booking channels are showing rapid growth in Eastern Europe. In a bid to cater to the region, InterContinental Hotels Group has announced the launch of its Russian and Turkish language websites. According to Michael Menis, Vice President of Web & Interactive Marketing for IHG: “The launch of these languages builds on IHG’s feeder market strategy and will further contribute to hotel growth in Russia and Turkey. We are an insight driven business and it’s important our brands are where our guests need them to be and can access them easily.”

GDP • According to the United Nations World Economic Situation and Prospects 2013, economic growth in Russia and CIS was robust in 2012 and GDP is expected to grow by 3.8% in 2013, exceeding the global average.

• However the direct contribution of travel and tourism to Russia’s GDP lags behind other BRIC countries.

• Georgia and Kazakhstan are forecast to show the strongest GDP rates in the region.

BRANDS Hotel groups take note!

According to Michael O’Hare, Managing Director, co-founder and partner of Horwath HTL Hungary & Russia, there are only 94 internationally branded hotels in all of Russia. That’s just six more than the city of Dublin.

LIFESTYLE Russia is the latest country to impose major new restrictions on smoking in public places. From June 2013, lighting up will be banned in restaurants, cafés and trains, affecting some 40% of the population said to be regular smokers. How does this affect the hotel design industry? Other countries that have introduced a ban have seen a rise in the number of rooftop bars and outdoor hospitality spaces to accommodate smokers.

OUTBOUND TOURISM Russia has one of the fastest growing outbound tourism sectors in the world. But, according to DLA Piper, the country is a big ‘export loser’ with outbound tourists taking double the trips abroad and spending over three times more than inbound tourists. This indicates that more can be done to attract visitors.

VISAS According to some, the single biggest challenge facing Russia’s tourism industry is the lengthy and expensive visa application process. In 2008, normal visa requirements were waived for football fans travelling to watch the Champions League final in Moscow. A similar agreement has been announced for athletes and officials attending this year’s World Athletics Championships, but the government is yet to announce a permanent user-friendly visa system.

ROOM RATES There is a chronic undersupply of affordable accommodation in Russia. An annual survey by Hogg Robinson Group (HRG) named Moscow hotels as the most expensive in the world for the ninth consecutive year, and this doesn’t look likely to change. In 2012, room rates increased by 4% year-on-year to RUB12,231.75.

INBOUND TOURISM Inbound tourism is set to soar by 20% over the next four years, fueled by the hosting of major sporting events. Russia’s largest feeder markets are the former Soviet Republics of Ukraine, Kazakhstan and Uzbekistan.

NATURAL RESOURCES

Russia remains heavily dependent on oil, so much so that the economy reached crisis point in 2008 when the price per barrel fell below US$50. The outlook for 2013 is favourable but those looking to invest (in any industry) are urged to take oil prices into account.

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HOTEL REVIEW

Design group HBA and architectural firm HOK have collaborated on the Fairmont Baku, an ambitious addition to Azerbaijan’s hotel stock.

Fairmont Baku Azerbaijan WORDS: Eileen Keribar PHOTOGRAPHY: Courtesy of Fairmont Baku

T

hrust into the limelight as host of the Eurovision Song Contest in 2012, Baku, took the opportunity to show the world its shiny new architectural image, replete with the faceted Crystal Hall, purpose-built for the event, the upcoming undulating Heydar Aliyev Center by Zaha Hadid, and, most prominently the striking Flame Towers by HOK with façade by Warner Sobek.

Three gleaming towers that meet at a monumental base, the design evokes three flames, representing Baku’s past connection with Zoroastrian fire worship and its current association with natural gas. And as if the forms themselves weren’t enough, the façades of the three Flame Towers double as colossal display screens with the use of more than 10,000 high-power LED luminaires, animating with dynamic flames to the effect of giant torches that can be seen from across the city at night.

Soon to be housed within one of those flames, Fairmont Baku (set to open this Spring) will occupy the northern-most tower of the mixed-use complex, marking Fairmont’s first foray in the Azerbaijani market.

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HOTEL REVIEW

PREVIOUS PAGE: The hotel is located within the striking Flame Towers by HOK. The façade, designed by Warner Sobek, doubles as three colossal display screens powered by more than 10,000 LED luminaires THIS PAGE & OPPOSITE: The interiors of the hotel’s lobby, Nur Lounge, restaurants, guestrooms and spa are designed by HBA Occupying the entire tower, the hotel will afford views of Azerbaijan parliamentary buildings, Baku’s ancient Inner City, and the Caspian Sea. Of the 318 rooms, 19 will be serviced apartments, duplexes with loft-style living rooms. The private Fairmont Gold Floor will host 57 guestrooms and suites, with the exclusive Gold Lounge featuring a stunning light fixture of suspended amorphous raw crystals, downlit to form an undulating glowing ceiling.

Mythically reported to have 95+ room types due to the building’s form, spacious guestrooms will boast high ceilings, floorto-ceiling windows, crafted features such as leather reading lights and a window divan, and advanced technology with an integrated touch panel control centre.

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Located in a very forward and hi-tech architectural icon, Fairmont, the owners, and interior designers Hirsch Bedner Associates spent much time determining whether the cue for the hotel’s interiors should follow the building’s aesthetic. Ultimately the decision was made to remain sensitive to the spaces and volumes that the building produced, while HBA’s challenge was to create an interior scheme that brought additional warmth, a human scale, and timeless appeal.

The hotel’s lobby will be an awe-inspiring volume, upwards of 20m in height with massive slanting columns and a single glass façade. Grand detailing of soaring bookmatched marble walls will stretch skywards toward an oversized chandelier fixture by Lasvit, creating a sculptural

glass feature. In order to enrich the space at a more human scale, oversized bronze paravan dividers will break up the space and create a backdrop to the reception alongside a large commissioned artwork of oxidised copper with antique flag finials.

The lobby flows into the Nur Lounge where dark polished wood panels will dress the columns and warm the space, while banquette seating and plush armchairs will sit alongside an impressive sculptural glass bar, ensuring that the space transitions easily from the daytime into the evening.

Opposite the lounge are stairs sweeping to the convention centre where guests can take glass elevators to connect to the events facilities below or to the third floor dining hub which will serve as the transition into

the complex’s retail podium.

Located in that hub will be the Alove Steakhouse & Jazz Bar, where guests can enjoy the most formal dining on the property as they watch Chef Orkan Mukhtarov, a multiple gold award winner of the International Gastronomy Festival of Turkey, Ukraine and Serbia in full view in the open kitchen. The adjacent Alov Jazz Bar will offer small bites and a stylish lounge with live music every evening.

Connected to the lobby is Le Bistrot, a French brasserie. Located in a corner of the hotel, the restaurant will have its own dedicated garden that will host live music in the summer. With a focus on its open kitchen, the restaurant will feature stunning linear displays with backlit ice and a classic

patisserie. A sparkling room, steel and glass will be complimented by an intricate mosaic marble floor with a two-tone white and grey kaleidoscopic pattern.

The 1,036m2 ESPA at Fairmont Baku will be situated on the 5th and 6th floors. The wellness area will feature an ESPA Juice Bar, Technogym fitness centre, hammams and indoor pool from which guests can walk to the outdoor pool terrace, a roof garden within the three flames on top of the retail complex. H2O, the poolside restaurant, rounds out the experience.

The big surprise yet to come is The Flick, a restaurant at the pinnacle of the Flame. An awesome space, diners will revel in this glass pyramid in the sky with its birds-eye view over the City of Fire.

EXPRESS CHECKOUT Fairmont Baku Flame Towers, Baku, Azerbaijan Tel: +994 12 437 3162 www.fairmont.com/baku

299 guestrooms and suites, 19 duplex apartments Alove Steakhouse & Jazz Bar, Le Bistrot, The Flick, Pool Bar & Grill Nur Lounge [ ESPA + Business Centre, 2,500m2 of function space for conferences and events Operator: Fairmont Hotels & Resorts Architect: HOK Interior Designer: HBA 29

HOTEL REVIEW

11 Mirrors Kiev, Ukraine WORDS: Shanna McGoldrick PHOTOGRAPHY: Courtesy of Design Hotels

Ukrainian boxer Wladimir Klitschko has collaborated with local and international designers to create the country’s first Design Hotel, a reflection of modern Kiev.

HOTEL REVIEW

K

iev is a city of contradictions.

Suffering from the effects of political unrest, the capital of the former Soviet state of Ukraine is also a visually stunning hub for business, science and economy, a chic tourist destination and fairytale city of enchanting spires, domes, balconies and frescoes.

It is this sense of multiple personalities, histories and identities that inspired the concept of 11 Mirrors – the first Design Hotels property in Ukraine – which opened its doors in 2012. Located in the very heart of old Kiev just a few meters from the National Opera House, the eleven-storey building is a mélange of classic embellished stone broken up by sleek panels of mirrored glass that reflect their immediate surroundings and form a synergy between contemporary design and 19th century architecture.

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The project is the brainchild of Wladimir Klitschko, a Ukrainian heavyweight boxer known professionally as Dr. Steelhammer.

Out of the ring, Klitschko has travelled extensively and envisaged a hotel that would reflect the many different aspects of Kiev, as well as his own experience. “I spend a significant amount of time in my life travelling,” he explains. “Hotels are an important part of my lifestyle, my comfort and my mood. A team of talented Ukrainian and international professionals understood my experience and expectations as a demanding traveller. We talked extensively.

They took my advice while creating the whole concept in every detail.”

Anatoliy Kirik and Marina Leo led the design process, working closely with Klitschko to combine global trends with a timeless elegance. The hotel’s minimalism

pays homage to modern Ukraine; sophisticated and simple without the heavy embellishment or imperial exaggeration often associated with the Ukraine of the past. Instead, the drama comes from outside, with panoramic views of the cityscape and LCD TVs holding up a reflective surface to the world.

Reflection is, in fact, a continuous theme throughout the hotel and is evident from the outset. A contemporary stainless steel ceiling designed by Kirik and mirrored wall décor courtesy of the Formichev Brothers Creative Studio, greet guests as they enter the building, complementing the natural stone walls, floor and fireplace. The theme is carried through to the guestrooms where shiny globules of metal form sculptural artworks. Reflective silver mirrors and surfaces, as well as ceramic decorations

PREVIOUS PAGE: Stainless steel and mirror details complement the natural stone walls and fireplace in the lobby THIS PAGE: The theme continues in the guestrooms where shiny globules of metal form a sculptural artwork

by majolica artist Taras Tkachenko, can be found throughout.

The 49 guestrooms and suites, including Incognito Superior Rooms and Lifestyle Executive Suites, offer space for contemplation and self-reflection in sumptuously elegant surroundings. Rich reds and purples are used sparingly against a background palette of muted tones, glass and stone, combining clean lines with richly warm textures to a sophisticated effect.

Bathrooms are spacious and contemporary, mixing marble tiles with sharp cubic forms and a monochromatic colour palette. Attention to detail is paramount, and extra design touches such as abstract mirrored wall sculptures, all-

natural cosmetics and walk-in rain showers lend the hotel an authentically luxurious ambience.

Dining options at 11 Mirrors include an informal restaurant on the first floor mezzanine, which serves up refined European dishes in addition to classic continental breakfasts. The already popular Lounge Bar boasts a double-height log fireplace, floor-to-ceiling windows, contemporary pendant lamps and modular sofas, with the overall composition orchestrated again by the Formichov Brothers. Serving a variety of wines and cocktails and late-night dishes, there is no better place to watch the sun sink down behind the city’s spires.

EXPRESS CHECKOUT 11 Mirrors 34A, B. Khmelnytskogo Street 01030 Kiev Ukraine Tel: +38 044 581 11 11 www.11mirrors-hotel.com

49 guestrooms and suites 11 Mirrors Bar & Restaurant, Lounge Bar [ Use of Leonardo Wellness Club + Use of Leonardo Business Centre, meeting and conference facilities Owner / Developer: Wladimir Klitschko Architect: Anatoliy Kirik and Marina Leo Interior Designers: Anatoliy Kirik, Marina Leo, and Formichov Brothers Creative Studio 33

HOTEL REVIEW

Sleepbox Hotel Tverskaya, Moscow WORDS: Catherine Martin PHOTOGRAPHY: Courtesy of Sleepbox Hotel

Entrepreneur Leonid Chernikov has partnered with Moscow-based design studio Arch Group to open Russia’s first capsule hotel, made up of compact 4m2 sleepboxes.

F

or almost a decade, Moscow’s hotels have ranked the most expensive in the world. Average room rate now exceeds US$400 per night and with much of the development focused at the luxury end of the market, it doesn’t look likely to fall any time soon. There are, however, a handful of new concepts that aim to tackle the city’s chronic shortage of quality budget accommodation and make an overnight stay affordable for all.

Based on the capsule hotels that found fame in Japan, Sleepbox is one such concept.

The brainchild of young entrepreneur Leonid Chernikov and architects Michael Krymov, Alexey Goryainov and Alexey Poliakov of Arch Group, Sleepbox first appeared at Moscow’s Sheremetyevo International Airport as a pit stop for weary travellers.

Now, the concept has become a complete hotel with rooms selling for a fraction of the city’s average room rate.

Sleepbox Hotel Tverskaya is located in downtown Moscow in the immediate vicinity of the Kremlin and close to Belorussky Railway Station, the arrival point for Aeroexpress trains from the airport.

The disused building, not originally intended for hotel use, has been converted into a functioning hotel with the installation of 4m2 sleepboxes. The 56 pods sit sideby-side across the four-storey building, each connected to a power supply. Double sleepboxes are constructed from wooden panels with LED spotlighting, while single pods feature a monochrome scheme with white wall panels and contrasting black accent pieces. To keep costs to 35

HOTEL REVIEW

PREVIOUS PAGE: Double sleepboxes are constructed from wooden panels with LED spotlighting THIS PAGE: Public spaces comprise a futuristic-looking lobby featuring an ice white Corian reception desk and information zone

a minimum, it was decided to leave the existing ceramic granite on the floor, covering it with rubber.

Compact and functional, each pod is equipped with a single, double or bunk bed dressed in quality linen, a TV, mirror, power socket, hanging space, and storage (additional storage lockers are also available). A small window facing the internal corridor eliminates any feeling of cabin fever, with privacy offered via a switchcontrolled blind. Shared bathroom facilities are found on every floor in the form of individual shower and toilet cabins.

For those wanting more space, a handful of regular rooms with private bathrooms can be found on the top floor where the ceiling 36

heights were too low for a Sleepbox.

Public spaces comprise a futuristiclooking lobby featuring an ice white Corian reception desk and information zone with mounted iPads. Facilities also include a communal laundry and a smoking lounge.

While there are no F&B facilities other than vending machines, the hotel’s prime location means that a plethora of bars, restaurants and cafÊs are right on the doorstep.

With prices starting at US$85 per night, Sleepbox is significantly cheaper than other hotels in the area. According to sources, the team has plans to open more hotels across the city and is currently on the lookout for premises with good transport links in a bid to attract the European traveller.

EXPRESS CHECKOUT Sleepbox Hotel 1 Tverskaya-Yamskaya Street 27 Moscow Russia Tel: +7 495 989 41 04 www.sleepbox-hotel.ru

56 sleepboxes + Self service laundry, smoking lounge Investor: Leonid Chernikov Architect / Designer: Arch Group

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A GUIDE TO DOING BUSINESS IN RUSSIA & CIS

S R E V O D N A H G N I HELPE TO DOING BUSINESS IN RUSSIA & CIS A GUID

ties practicali e h t s in la ar exp c. t Republi een Kerib ie il v E : o s S r le e d form and rid cts in the je Red tape o r p l e t ping ho of develo

T

here is no disputing that Russia and the CIS is an immense and steadily growing market, attracting developers and investors in their droves. All are eager to capitalise on an opportunity for growth, however, this region has noteworthy intricacies that require investigation and preparation on the part of the company planning to break into the market.

Consistent with working in other parts of the world, it is important to keep in mind the significant differences between Western and Eastern approaches to business and, in this particular region, understand the peculiarities of newly independent economies. Russia and CIS represent a very broad spectrum with much variance between the countries, and the dissolution of the Soviet Union could be considered a renaissance for many of the nations that were born out of it. While cultural heritage, business habits and ingrained historical characteristics remain strong and have carried over into the identity of each of these newborn nations, emerging economies such as those in the CIS can often show great initiative towards establishing commercial regulations and procedures, effectively starting with a clean slate.

What successful CIS nations share is steady 38

lls and pitfa

growth in the development of such systems and regulations, allowing countries like Georgia (9) and Armenia (39) to outrank established European nations such as France, Portugal and Spain in the World Bank’s Ease of Doing Business Rankings.

Again, that is not to say that the region as a whole has made great strides. Ukraine (137), Tajikistan (141) and Uzbekistan (154) continue to trail in the World Bank’s measure of 185 countries (Source: The World Bank Economy Rankings, 2012).

The majority of CIS governments, while democratic in structure, maintain a highly centralised administrative composition, with leadership remaining almost intact from the day of the Soviet Union’s breakup. The relatively new nature of many CIS countries as individual entities also leads to unique challenges. Many of these nations are grappling with the development of their global image and trying to understand their individual USP, worldwide positioning and alliances, all while determining the direction of their future.

In the meantime, the business world is effectively centrally controlled, making it easier to identify key players in the market through research, particularly with the assistance of locals. Higher stakes lie within the hands of a few

powerful conglomerates, many of which are spearheaded by oligarchs.

Hotels ultimately being a real estate endeavor, it is important to note that real estate related legislation has a long way to develop before reaching the sophistication of Western Europe. Furthermore, the bureaucracy surrounding a development is not only challenging to navigate as a foreigner but also lacks a clear road map.

For this reason it is common, particularly in large projects, for foreign investment to be aligned with or in joint venture with locallybased businesses.

Corporate governance, too, is not always clearly defined. The senior executives that represent corporations are not necessarily the decision makers. In this sense, every effort should be made to understand who you are getting into business with and to ensure a direct line of contact with decision makers, though that alone won’t prevent roadblocks or vast shifts in priorities and finances. It isn’t unheard of for an owner to forget he’s building a hotel because he’s concentrating on a large oil rig deal.

Furthermore, executives in the region

may lack the language skills to comfortably conduct negotiations in English. Often a personal assistant or interpreter will assist, but that does not always ensure a smooth process. It’s highly recommended to hire an experienced interpreter versed in your particular industry that will not only translate but can also adjust and explain intercultural differences and cover topics with industry-specific language.

Local investors/owners are often cautious in revealing their true identity and in many cases foreign companies will be interfacing with an ‘affiliate’ organisation. For those requiring strong due diligence, this can be frustrating as investigations often won’t reveal information on who you’re actually working with. On the flip side, this can also make transactions easier in a certain sense as these organisations are typically more structured, savvy, and business-oriented than the primary investor or beneficiary.

For a typical hotel operator, another key element in evaluating ownership and the opportunity will be to identify the funding sources. Here too, corporate set up will likely be ambiguous and financing plans murky by

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Western standards, but it is important not to allow this to be a deterrent, as ultimately projects do complete, albeit with a lack of transparency.

Many of our industry colleagues who have worked in the region will verify that each development has a story to tell – whether a change of ownership outside of an operator’s control, the appointment of a new main contractor in the middle of construction or the fact that what was going to be a park adjacent to your property is now in fact going to be a tower built by someone else – it is no secret that developments in the region hold their fair share of surprises.

What is important is to take stock of the elements that are less transparent than in the West: to cover one’s bases contractually; to have a say in selection of all consultants and contractors; and to ultimately learn to live with this part of the world’s own idea of ‘getting things done’.

If this can be managed, there are plenty of upsides for operators aside from the general growth potential in the region.

For one, international brands will not 39

A GUIDE TO DOING BUSINESS IN RUSSIA & CIS

typically find impressing their brand standards into the development process a challenge. On large scale projects, worldclass contractors are a norm and Turkish and Korean contractors have grown prominent in the region, ensuring high quality execution.

Also notable is the fact that, thus far, local manufacturing is not a particularly strong industry, so quality control can be more assured as much of the specified products will be imported and meet operator’s and designer’s original specifications.

Service providers, in contrast to hotel operators, stand more chance of being subjected to the brash decision-making of powerful key decision makers on a project.

Because owners in this part of the world are still very much brand lovers, they are more or less willing to live with the rules of brands once they align with them. Unless you’re a ‘starchitect’, however, you may find that your design effort and industry know-how will fade next to the likes and dislikes of a decision maker.

It is important for designers to incorporate flexibility into their design process and gain an understanding of how decisions are made. One solid recommendation is to include an extended session for reviewing mood imagery with key decision makers in the project kickoff.

One of the strongest indicators a designer can get in terms of a project’s direction will be to measure the emotional reaction to images, allowing this key decision maker to ‘shop for a look’. Only then will a true understanding of expectations reveal itself.

While it may feel like putting the cart ahead of the horse (much of the design process will!), this review will be of more value than anything before putting pen to paper, above all allowing the decision maker to start the dialogue on their terms, in a realm familiar to them: aesthetics.

Visual tools will continue to be extremely useful from the earliest of design stages.

While a more-technically oriented team may be at the ready to review adjacencies, plans, and HVAC system options, at the decision-making level, the audience will always require 3D renderings, even at very conceptual stages.

Often a project’s design will be reflected in renderings down to the forks on the table at this stage, so it is critical to be able 40

to design to the image once it is delivered, assuming it is approved. If possible, the best way to hedge a misunderstood directive or the very real possibility that there won’t be an opportunity to present these renderings in person is to develop a variety of images to capture all understandings.

The biggest caveat for designers looking to work in the region is to make sure that there is a real project. It is very common for design presentations to be used for raising finance rather than for feasibility, and architecture and design are often a critical element in getting governmental approvals.

As a design firm, it is important to go through the motions if you want to get in at the ground level, but critical to calibrate your investment wisely, ensuring that agreements address long periods of inactivity and a schedule of payments at short-term intervals.

As in many other transition economies of the world, careful consideration needs to be given to contractual matters, both in management agreements and design contracts. Agreements will likely be in both English and Russian – often with Russian

IT IS IMPORTANT FOR DESIGNERS TO INCORPORATE FLEXIBILITY INTO THEIR DESIGN PROCESS AND AN UNDERSTANDING OF HOW DECISIONS ARE MADE.

prevailing in the case of discrepancies.

It is important to be prepared to draft agreements in both languages at the outset so that the document can evolve with the negotiations. Otherwise, certain clauses specific to Russian-language basic contractual terms may sneak up late in negotiations, unraveling a lot of hard work.

Due to civil codes in Russia, for example, management agreements can be unilaterally terminated by the owner with compensation limited to costs incurred and fees due (i.e. no liquidated damages). For this reason, many operators opt for foreign

WORLD BANK’S EASE OF DOING BUSINESS RANKINGS

is important to note that certain Russian law provisions related to licenses and taxes may still apply to the relationship.

One particular clause to keep an eye out for in the CIS is the requirement of a ‘Certificate of Acceptance’ by the owner. A legal adviser will need to seek a comfortable solution for both parties if this clause is present because as it is typically drafted, an owner is not required to pay the contracted party until the COA is signed, and it is not clear when (or whether) the owner will sign.

As an overall word of advice from DLA Russia’s Scott Antel, an appreciation of the owner’s onerous bureaucratic limitations in contracting ‘soft services’ such as in a management agreement or design contract, and a proactive research of tax implications will go far in showing the owner you understand the practical realities of conducting business in their country – and can help to ensure timely payments (Source: Top 10 Tips for Negotiating Russian Hotel Management Agreements, DLA Piper).

As a resource, Deloitte’s website has a comprehensive review of specific tax considerations, with a site dedicated to each country.

Long considered a region of the world particularly susceptible to corruption, the latest Global Corruption Report published

by Transparency International indicates that this perception remains intact. The Corruption Perceptions Index for Russia and CIS countries in 2012 varies between 17 and 34 points out of 100 (higher scores correlate to low level of corruption, Georgia being an exception at 52) (Source: Corruption Perceptions Index 2012, Transparency International).

Recognising this issue, the majority of the CIS countries have been actively implementing programs to combat corruption: adopting new laws, complying with international conventions, increasing scrutiny and strengthening law enforcement and judicial practice, as well as cooperating with the private sector to combat corruption (Doing Business in the CIS: Local Advice, Global Perspective ©THE CIS LCN, 2010).

Given that much of Western Europe’s economies are still rocky, Russia and the CIS remain one of the most interesting regions for investment and new business potential. According to HVS Russia’s, The

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CIS and Georgia Hotel Valuation Index 2012, over the last two years hotel markets have been recovering, with values in the region growing by 8% on average in 2011 and forecasted to have grown 3% in 2012.

Furthermore, HVS forecasts hotel values in the region to grow at a compound annual rate of 5.7% between 2013 and 2017 (Source: Russia, The CIS and Georgia Hotel Valuation Index 2012, HVS Report, October 2012). Servotel Corporation’s hotel advisory division is more reluctant to provide a blended forecast, but reports growth expectations in Russia, Ukraine and Kazakhstan in particular.

Given that promise, much of the above with respect to barriers to entry should stand as a guide towards best practices rather than a deterrent to entry. Clear dialogue, an understanding of decision making processes and hierarchies, calibration of wise investments with some unknowns, and an appreciation of your counter party’s context will all lead to sound, successful, and I daresay exciting endeavors in a rapidly growing part of the world.

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SOCHI 2014: A LASTING LEGACY?

: 4 1 0 2 I SOCH NG LEGACY? I T S A L A ics, ter Olymp in W 4 1 0 the 2 arn ost city le s down to t h n e u h o t c n i a h hat c As Soc in asks, w t r a M e in Cather rs? redecesso p s it m o fr

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n the six years since Sochi was announced as host for the 2014 Winter Olympics, preparations have been under way to create a city fit for a major international event. State-of-the-art sports facilities, a sound infrastructure, and some 27,000 new hotel rooms are set to be unveiled in the coming months, transforming Europe’s largest construction site into a first-class Olympic Park.

Come February, the world will be watching as Sochi 2014 officially opens to a global audience.

Aside from sporting success on the slopes, the Games will also be an opportunity for Sochi to showcase its tourism potential. The former Soviet spa town located along the shores of the Black Sea near the Caucasus Mountains, is already a popular holiday destination dubbed the Russian Riviera thanks to its endless beaches and resort hotels.

For the Olympics, sites are divided into two clusters – coastal and mountain – separated by a new 30-minute rail link currently under construction. To meet the criteria of an Olympic host city, Sochi will need to have 42,000 rooms completed by the time the opening ceremony commences. 27,000 of these are expected to be brand new, offering a full range of accommodation from budget through to luxury.

The fundamental question is, whether Sochi can create a lasting legacy, and whether the region as a whole can capitalise on this success.

To do this, Russia must look to the experiences of previous host cities. Perhaps the greatest accomplishment comes from Barcelona. The

42

1992 Olympic host reaped the rewards of positive exposure; in the 15 years after the games, visitors to the city increased from 1.7 to 5.5 million annually.

Conversely the impact of the 2008 Beijing Olympics was not so positive. While the city put on a spectacular event, investing in facilities and infrastructure, little consideration was given to utilising venues after the Games: today, the famous Bird’s Nest stadium and Water Cube aquatic centre are rarely used for their intended purpose. The hotel industry suffered too. A development boom in the lead up to the Games – particularly at the luxury end of the market – led to an oversupply, high rates and subsequent empty rooms.

There is good news for Sochi though, as the Russian Government has put strategies in place to dispel concerns of overpricing. Prime Minister Dmitry Medvedev has set a price limit of 14,000 Russian Rubles (approximately US$450) per night for the duration of the Games, making attending more affordable. Minimum stays have also been banned, forbidding hotels from forcing guests to stay for more than one night.

Lessons can also be learned from London, host of the 2012 Olympic Games. Although too soon to measure its full impact, the Olympics is widely considered a success story for the UK. InterContinental Hotels Group, one of the main sponsors, is already benefitting from its Holiday Inn brand being official hotel of the Games.

“Our 51 hotels in London had over 90% occupancy during the Olympic Games,” explains Chris Hale, Vice President Global Marketing Services (formerly IHG Head of London 2012). “As a result, those who have seen our Olympic campaign are 50% more likely to stay with us than they were before. We have also seen an 11% increase in consideration for Holiday Inn amongst business travellers in the UK,” he adds.

Hale believes that the once-ina-generation event has been a real opportunity for London: “The Games can help triumph a city’s tourism infrastructure and change the way the world views a destination in the long term. We believe the legacy of the Games will have a positive impact on tourism for years to come, so it is important to consider ways in which you can contribute to the legacy. For example, as part of our Olympic legacy, we opened the IHG Academy, which gives talented local people training and practical work experience at a hotel from the IHG family of brands. In addition, our two new hotels that overlook the Olympic Park at the Westfield Shopping Centre, Holiday Inn London Stratford City and Staybridge Suites London Stratford City, have created new job opportunities in the area.”

He concludes: “To reap the rewards you need to grab this opportunity to sell your

country to the world. The right investment, structure and commitment is needed to ensure a success such as the London 2012 Olympic and Paralympic Games, which have left a long-term legacy for Britain to capitalise on.”

It would seem that Sochi has taken heed and is well on its way to creating a lasting legacy for the Krasnodar Region. By 2014, a total of 183 infrastructure facilities will be constructed and modernised, all essential for improving the quality of life for

stadium will host the 2018 FIFA World Cup finals.

Sochi’s lasting legacy is to create a tourism destination that will improve economic conditions and sustain

THE RIGHT INVESTMENT, STRUCTURE AND COMMITMENT IS NEEDED TO ENSURE A SUCCESS SUCH AS THE LONDON 2012 OLYMPIC AND PARALYMPIC GAMES, WHICH HAVE LEFT A LONG-TERM LEGACY FOR BRITAIN TO CAPITALISE ON permanent residents. And there are plans in place to make use of the Olympic venues once the Games draw to a close. The first Russian Formula 1 Grand Prix will be held at the end of 2014 on a race track winding around the Olympic Park, while Sochi’s main

employment levels. With its year-round appeal, subtropical climate and winter sports, along with newly upgraded infrastructure and facilities, Sochi is already looking to be a winning combination for the hotels under development.

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SOCHI 2014: A LASTING LEGACY?

SOCHI 2014: R DEVELOPMENT HOTELS UNDE

Park Inn City Centre Sochi 160 rooms / opening 2013

Hyatt Regency Sochi 200 rooms / opening Q4 2013

Radisson Blu Beach Resort & Spa 508 rooms / opening Q4 2013

Swiss么tel Sochi Kamelia 203 rooms / opening 2013 44

Marriott Krasnaya Polyana Hotel 398 rooms / opening late 2013

IN THE PIPELINE...

Courtyard by Marriott Sochi Plaza Hotel / 345 rooms / late 2013 Doubletree by Hilton, Sochi Adler / 200 rooms / 2013 Park Inn Sochi Riviera / 198 rooms / 2013 JW Marriott Sochi Golf Resort / 150 rooms / Early 2014 Sheraton Sochi Hotel / 212 rooms / 2016 Pullman Sochi University Plaza / 150 rooms / 2013 The Sol铆s Hotel / 120 rooms / 2013 Mercure Rosa Khutor / 151 rooms / 2013 Capella Sochi / 59 rooms / 2013 According to hotel data provider Top Hotel Projects, the largest construction project will be a 1,564-room complex featuring six new luxury hotels, operated by Interstate Hotels & Resorts. Three of the six hotels are expected to be Marriott hotels.

EVENTS

EVENTS

DIARY 2013 Moscow International Furniture Show Moscow 21-25 May 2013 www.mmms-expo.com

PIR Group announces second edition of design-led expo for hospitality industry

Hotel Investment Conference moves to Sochi ahead of Winter Olympic Games

PIR Group, organisers of the largest trade show for the hotel, restaurant and catering sector in Russia and CIS, has announced that Hotel will return to Moscow in October 2013.

Dedicated to the hotel design industry, the event launched in 2012 to run alongside a larger hospitality-focused fair attracting 60,000 trade professionals from across the region. The four events will take place at Moscow’s Crocus Expo International Exhibition Centre in which 10,000m2 will be given over to Hotel. A host of national and international exhibitors are lined up to showcase their products and services to an anticipated 8,000 visitors that include hotel operators, investors and developers, designers and architects.

New features for 2013 include a mock hotel room that demonstrates sustainable building and energy saving solutions, with specialists on hand to offer advice.

Hotel will also host an educational conference covering a wide range of topics through seminars, presentations and workshops. Entitled Hotel Infrastructure and Development in Russian Regions, the conference will bring together representatives from national and local government, developers, investers, consultants, architects and designers.

PIR Group is committed to assisting the development of Russia’s hotel sector and invites international hospitality professionals to attend the budding event. www.pir.ru

Bench Events and Questex Media Group LLC have announced that the 9th Annual Russia & CIS Hotel Investment Conference (RHIC) will take place at the Radisson Blu Resort & Congress Hotel in Sochi, Russia site of the 2014 Winter Olympic Games.

As it gears up to host the event, Sochi is undergoing a major transformation from a regional hub into a global tourism destination. The city has also been chosen as a venue for the FIFA World Cup finals in 2018. In preparation for these mega-events, Sochi and the local region are creating new attractions and investing in infrastructure.

“With the 2014 Winter Olympic Games fast approaching, the world’s eyes are on Sochi,” comments Jonathan Worsley, Chairman of Bench Events. “We are delighted that the city will host RHIC this year. Colleagues in the travel and tourism industry are looking forward to seeing the Olympic Park and the region’s new hotels in person with Sochi’s preparations for the Winter Olympic Games in full swing.”

RHIC is the region’s largest gathering of hotel investors, developers, brand leaders, operators, financiers and advisors. Those attending will gain insight from Russian and global leaders as to where the real opportunities lie, discover successful strategies from those already operating in the market, and hear from government officials and top economists on the latest forecasts and trends. www.russia-cisconference.com

Rooms Moscow Moscow 21-25 May 2013 www.rooms-moscow.com Turkey & Neighbours Hotel Investment Conference (CATHIC) Istanbul 29-30 May 2013 www.cathic.com CIS & Georgia Hospitality Investment Conference (iCON) Kiev 19-20 September 2013 www.iconhvs.com Domotex Russia Moscow 25-27 September 2013 www.domotex-russia.com Heimtextil Russia Moscow 25-27 September 2013 www.heimtextil.messefrankfurt.ru Hotel Moscow 1-3 October 2013 www.pir.ru I Saloni WorldWide Moscow Moscow 16-19 October 2013 www.cosmit.it Russia & CIS Hotel Investment Conference (RHIC) Sochi 22-23 October 2013 www.russia-cisconference.com Interlight Moscow powered by Light+Building Moscow 5-8 November 2013 www.interlight.messefrankfurt.ru

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SPECIFIER

SPECIFIER

PRODUCTS AND SERVICES

DECOFLAME BIOETHANOL FIRES Decoflame has added a contemporary design to its bespoke range of custom-made bioethanol fires, featuring the patented decoflame e-Ribbon Fire – the latest technology for electronically-controlled bioethanol fires. The collection comprises a vast number of layout variations from wide linear, over-edged or curved forms to completely round flame displays, offering countless possibilities to create an exciting and individual focal point in an interior or exterior setting. www.decoflame.com / www.biokamin-decoflame.ru PRECIOSA LIGHTING LOTTE HOTEL MOSCOW Preciosa Lighting has completed the design and installation of more than fifty fixtures for Lotte Hotel Moscow. The property glitters with with cast, cut and polished, plated and slumped glass luminaries in a variety of shapes, sizes and designs, from modern to classical. The most striking is a 1.25 metric ton creation in the hotel lobby.

The Czech-based manufacturer is dedicated to combining the essence of Bohemian crystal and glass tradition with 21st century technology. Other recent projects include Hilton Bursa Convention Center and Spa, Turkey, Ritz Carlton Hong Kong, and Four Seasons Beijing. www.preciosalighting.com 48

B.LUX GROUP TRADE MISSION Lighting manufacturer B.lux Group recently participated in a trade mission to Russia with a view to providing continuity to the commercial strategy it has been developing in recent years with distributors in the region.

Arranged by the Spanish Institute of International Trade (ICEX) working in collaboration with the Chambers of Commerce, the meeting enabled heads of exportation to meet with architects and professionals to present its contemporary lighting designs and capacity to develop bespoke lighting plans and projects. www.grupoblux.com

CASE STUDY Smarteq and Swisscom Hospitality Partner to Deliver the Next Generation of Hotel Technology Solutions in Russia

BOSSINI CRYSTAL Made with Swarovski® elements, the new Crystal range from Bossini is ideal for exclusively luxurious bathrooms.

Available in square or round forms, the shower line will inject elegance into any minimalist and modern space.

Bossini has been producing showers and accessories from its headquarters in Italy since 1960, building a network of representatives across the world.

As well as providing its website and catalogues in the Russian language, Bossini has sales contacts on the ground in Kazakhstan, Ukraine and Georgia. www.bossini.it

BARONCELLI FOUR SEASONS HOTEL, BAKU UK-based lighting designer Baroncelli has completed the design and installation of a number of bespoke chandeliers at the recently opened Four Seasons Hotel in Baku, Azerbaijan.

Working with interior design firm Richmond International, Baroncelli created fixtures for the hotel’s signature restaurant, Zafferano. Each piece has been hand-blown in Murano glass, exemplifying Baroncelli’s hallmark of creating imaginative and unexpected designs using traditional craft techniques. www.baroncelli.com

Swisscom Hospitality Services and Smarteq have entered a commercial partnership to serve Russia’s hotel industry through a suite of integrated Information and Communication Technology (ICT) solutions.

Now acting as Swisscom’s exclusive channel partner for the Russian market, Smarteq sells, installs and supports Swisscom’s ConnectedHotel TV, IPTV, high-speed Internet access, Voice over IP, smart room controls and other leading guest technologies.

“As the market is transforming itself, Russian hoteliers are becoming very keenly interested in new IP technologies and how they can keep up with modern user trends,” says Nikolay Beloshitsky, General Manager at Smarteq. “Through our strong local presence we will be able to offer the full scope of works, starting from project management up to deployment and after-sales services.

“Many international operators are establishing their market presence, all at the same time, so our focus is to provide resources to ensure that every project throughout Russia is given the necessary attention and priority, be it a newbuild or a refurbishment,” he adds.

Swisscom Hospitality offers a suite of IP convergent guest applications designed for service areas such as TV and in-room entertainment, mobile connectivity, voice services, room environmental controls and hotel business centres and conferences. Acting through Smarteq, Swisscom Hospitality will advise hoteliers on how they can introduce next-generation, ‘smart’ hotel networks, whereby individual applications do not sit in mutually exclusive technology silos but rather converge on one common IT infrastructure, reducing capital and operational expenditure while improving guest services.

“I am truly excited about this partnership with Smarteq,” comments Dick de Pater, Head of Indirect Sales for Swisscom Hospitality Services. “At this critical moment, the Russian market can only benefit from our best-of-breed technologies which have matured and proven their value many times over elsewhere. By teaming up with a strong local hospitality technology supplier, we will service the Russian hotel industry in the most effective way, assure successful local delivery on framework agreements and contribute to a consistent service delivery for our global chain clients in this key growth market.” www.smarteq.ru www.swisscom.com/hospitality

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CHECK OUT

SLEEPING SATELLITE Intergalactic travel looks set to become a reality as Orbital Technologies unveils detailed designs of its space hotel, scheduled to take off in 2016.

First announced in 2011, the Commercial Space Station could easily have been an overambitious fantasy later consigned to the history book of hotels that never got built. But the Russian aerospace firm behind the world’s first space hotel has confirmed that it will open its doors in a matter of years. Orbiting 217 miles above Earth, the space hotel will offer wealthy tourists a unique hospitality experience. Far from being your typical holiday, it will take up to three months of training followed by two days aboard a Soyuz rocket to reach the hotel. And while the weightlessness of space doesn’t entirely lend itself to the luxury

market, the hotel is sure to be more plush than Yuri Gagarin’s Vostok spacecraft during his mission to outer space in 1961. Sparsely decorated, the four cabins accommodating a total of seven guests feature a vacuum toilet, sealed shower cubicle, microwave oven to reheat precooked meals, and vertical sleeping bags attached to the wall.

The only form of entertainment comes from the extraterrestrial life forms outside the window. And of course, holidaying in space doesn’t come cheap.

A five-night stay is expected to cost in the region of US$165,000, on top of the US$785,000 flight from Earth. The view however, is out of this world.

Subscribe online and save 20% www.sleepermagazine.com/showoffer/ Subscribers benefit from: • Six stunning issues featuring the best in international hotel design, development and architecture • Previews of the most exciting projects breaking ground • Reviews of hotel openings worldwide • In-depth interviews with leading hoteliers, interior designers and architects • News of products and services for contract use • Coverage of exhibitions and conferences for the hotel industry • Special supplements dedicated to emerging markets such as China, India and Russia.

For more information please contact subscriptions@mondiale.co.uk or call +44 (0)161 476 5580

Westin Hotel Xiamen | China, 2012

… W H E R E T H E S T Y L I S H , I N N O VAT I V E D E S I G N IS BORN OUT OF THE CRAFTSMANSHIP O F W H O L E G E N E R AT I O N S O F G L A S S M A K E R S

PRECIOSA CENTR, A.O. 4th Tverskaya – Yamskaya Str., 33/39 Office 150, Entr. 7 125 010 Moscow, Russia P / F + 7 499 972 68 05 M + 7 963 637 86 86 E infocentr@preciosa.ru

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