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CBRE research reports that only 3 branded international hotels will be operated in Rostov-on-Don during FIFA World Cup 2018

CBRE hotel experts in Russia continue to analyze the readiness of 11 Russian cities to host visitors of World Cup 2018. It is 1 month left before its start.

This time hotel experts analyzed hotel market of Rostov-on-Don.

According to CBRE research, only 3 branded international hotels will be operated in Rostov-on-Don during FIFA World Cup 2018.

Rostov-on-Don’s hotel market was developing more slowly in comparison with other regional cities of Russia. The first hotel operated by international brand – Mercure (89 rooms) was opened there in 2014.

Radisson Blu hotel for 82 rooms was opened in Rostov-on-Don in 2018 after its complete reconstruction. The third hotel in Rostov-on-Don, operated by international brand is Ramada Hotel & Suites with 92 rooms.

Courtyard by Marriott Rostov-on-Don for 200 rooms near Rostov Arena stadium might be commissioned in the city by the end of 2018.

As of the beginning of 2017, there are 103 hotels with a total number of 3,014 rooms in Rostov-on-Don. Only 25 of them (about 65% of the total number of rooms in the city, including mini-format) are the quality ones.

Tatiana Belova Associate Director, Head of Hospitality & Tourism group CBRE in Russia said: “Five years ago, after the announcement of all hotel projects in Rostov-on-Don, a dangerous situation could arise for the market, with the almost simultaneous introduction of new hotels, including several projects of luxury segments. It didn't happen before FIFA World Cup due to different circumstances. The hotels introduction is gradual, which has a positive effect on market performance. However, there are at least three branded projects at different stages of completion. The hotels will be commissioned within the next year and a half or two. The total number of rooms will be more than 550 rooms. It should be noted that all existing international players in the market have less than 100 rooms. It is obvious that the commission of new hotels in the middle price segment with the big number of rooms can have a negative impact on the average rate of all hotels in the city.

Tremendous work has been done in Rostov-on-Don to improve the infrastructure, including the construction of a new airport Platov, capable to accept all types of airplanes, which will increase passenger traffic, and thus increase the potential number of guests. In addition, the airport is located far from the city center, which makes one day business trips to the city  quite difficult. So this can increase the length of stay in the city for the guests. International players feel confident and look forward to FIFA World Cup 2018. Some of the rooms which were booked by Match Accommodation were cancelled in April, but the hotels were able to fill the vacant rooms."