Here in our Hotel Investment Blog we mentioned the report on hotel development in regional Russia implemented by HVS in October 2009. Due to the experts regional Russia has several advantages for hotel developers.
In particular one of the important prerequisites for regional hotel market development is transport accessibility of a region. The fact that Russian regions with their considerable remoteness from Moscow and St.Peterburg are hardly accessible for both international and local tourists and business people is well known.
The signs for the turn for the better appeared in 2007 when the first Russian low-cost airline SkyExpress took off from Vnukovo Airport in Moscow. With the cost of air travel coming down slowly along with evident time saving more and more travelers are becoming more mobile and visit regional towns with business or leisure purposes choosing this mood of transport.
The second low-budget air carrier appeared in Russia in August 2009. AviaNova airplanes fly from Moscow to Sochi, Krasnodar , Astrakhan’, Rostov-on-Don, Kazan, Samara and Naberezhnye Chelny (all the flights of the carrier will be switched from Vnukovo airport to Sheremetievo on March 28, 2010). These days AviaNova are launching two new destinations - Perm and Ufa.
So it is obviously that Russian regions become more and more accessible for travelers who by-turn generate the demand for quality accommodation and services of hotels managed by responsible hotel management company.

NAVTEQ Signs Golden Tulip Hospitality Group as Direct Access Customer
The Netherlands-based hotelier joins the NAVTEQ Direct Access™ program so that its 230 properties worldwide get premium positioning treatment on the NAVTEQ® map

Chicago, IL – February 15, 2010 – NAVTEQ, the leading global provider of digital map, traffic and location data for in-vehicle, portable, wireless and enterprise solutions announced that Golden Tulip Hospitality Group has signed to become a NAVTEQ Direct Access customer.

The deal provides that Golden Tulip Hospitality Group’s 230 properties in Europe, the Middle East, Asia Pacific, and North America receive pinpoint positioning on the NAVTEQ map, which is viewed approximately 100 million times each day.

Because they change at a rapid pace, points of interest (POIs) are among the most volatile data elements in a map database. NAVTEQ Direct Access allows merchant locations to be included and properly positioned in the NAVTEQ map, even if those locations should grow in number or change. Direct Access POIs, represented by the merchants’ logos, are then distributed to NAVTEQ’s customers for use on navigation devices or other mapping applications. More than 80% of people using navigation systems say they prefer branded logos to generic icons, according to an internal NAVTEQ Study (2008).*

“As NAVTEQ releases updated maps regularly, we can enable up-to-date access to our network of hotels, optimizing exposure to our guests,” comments Riko van Santen, senior vice president Distribution & ICT for Golden Tulip Hospitality Group.

“Given that many consumers looking for a hotel are usually driving in an unfamiliar area, the NAVTEQ Direct Access programme can be of enormous potential benefit to both hotel chains and their guests,” said David Barker, sales director for EMEA, NAVTEQ.

*Source: NAVTEQ POI & Rich Content Study 2008

NAVTEQ Press Release

Hotels in Moscow have been revealed as the world’s most expensive for a fifth consecutive year.

The world's most expensive hotels

2009 Arr (GBP)
2008 Arr (GBP)
Abu Dhabi
New York City

However , in our opinion as IFK Hotel Management Team, Although the ARR is quite high in Moscow, however, as not for Moscow for all Russia, the total hotel supply is quite low compared to the other cities on the list. Not to mention the proportion of branded hotels in comparison with the non-branded ones. For the investors who might like to take advantage of this situation and define their Russia strategy, we already posted number of opportunities in the very same blog, hotels that can be managed under IFK HM and branded as Tulip Inn (3* Stars) and Golden Tulip (4* Stars).