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. Last Updated: 07/27/2016

Rezidor SAS Announces New Hotels

As Rezidor SAS continues to move into Russia's hotel market, the company last week announced three new Radisson SAS hotels -- two in Moscow and one in St. Petersburg -- saying they are just a few of the projects it has in the works.

One property, to be called the Radisson SAS Belorusskaya, will be located minutes from the Belorusskaya metro station at 26 3rd Ulitsa Yamskogo Polya. With 264 rooms, it is scheduled to open in October 2007.

The other Moscow hotel, the Radisson SAS Riverside, is to be located 17 kilometers from the city center, at 81 Volokolamskoye Shosse. The 150-room hotel is scheduled to open in September 2007.

Rezidor president and CEO Kurt Ritter said a management contract had been signed for "a well-known existing hotel" in St. Petersburg, but he did not provide any further details.

Ritter said Russia had a lot of potential as a hotel market in part because many of its cities have no international-brand hotels.

"That is very uncommon," he said. "When these cities develop economically, I am sure they will need an international hotel brand."

The company is among several Western hotel operators -- with the others including Accor and Intercontinental Group -- that are trying to seize the opportunity to break into the Russian market.

Stephane Meyrat, an associate director at Colliers International, said international hotel brands saw Moscow and other parts of Russia as a hot market because there is a lot of money and few world-class hotels.

"Hotels want to share in the profits, and people are willing to spend an arm and a leg in Moscow," he said. "Why not go to a place where people spend money and don't think about tomorrow?"

Meyrat said the opening of more international hotels in Russia would provide more choices for the consumer and better quality. But he also said hotel prices would increase as more high-end hotels replaced the Soviet-style ones now in operation.

He said that if that were to happen, tourists might find themselves looking to the city outskirts to avoid paying $300 per night for a hotel room.

Rezidor already operates a 410-room Radisson SAS Slavyanskaya Hotel in Moscow and the 164-room Radisson SAS Royal Hotel in St. Petersburg. It also has hotels in Sochi, Yekaterinburg and elsewhere in the Commonwealth of Independent States.

Arild Hovland, the company's vice president of business development, said it is targeting central locations.

"Anywhere you can identify a market, where the transportation is good and it attracts people, or even have businesses in the area that will attract clients is a good location," he said.

The company is in advanced stages of negotiations for 16 projects in Russia, including three Radisson SAS hotels, 11 Park Inns and 2 Missonis.

Ritter said that aside from Moscow and St. Petersburg, the company was targeting cities such as Kazan, Ufa, Volgograd, Novosibirsk and Chelyabinsk.

Its hotels include the Radisson SAS, Country Inn, Missoni, Park Inn and Regent. It is the second-largest international four-star hotel brand in Europe, after Hilton Hotels, beating out Marriott International and Sofitel Accor Hotels and Resorts.