RFshelves plan for Russian expansion

01 January 2000
RFshelves plan for Russian expansion

Economic turmoil in the former Soviet Union has prompted RF Hotels to delay plans for a branded chain of as many as 50 business hotels across the region.

The company has shelved the planned opening of the first, a 150-bedroom hotel in Nizhny Novgorod, Russia, although it remains hopeful that the property could open next year.

A spokeswoman added that RF Hotels still saw a good market for business hotels there, and would pursue any five-star properties that became available.

While the chill economic winds closed the doors on Moscow's Next and Mothercare stores last week, Tricon Global Restaurants denied reports that the economy was to blame for the closure of one of its two Pizza Huts in Moscow.

Vice-president of business development Jeff Welch said that sales at the 10-year-old site had continued to be strong, and that the restaurant closed only because the city council had leased the building to someone else. Far from abandoning the market, Welch said Triconwas in advanced negotiations with a clutch of potential franchisees.

Other hotel groups say they have no plans to rein back expansion in the area. Hyatt continues to look at sites in Moscow and St Petersburg for its Russian debut, while Marriott International last week announced that it is to manage its first hotel in Armenia from 2001, when an existing property in the capital city, Yerevan, becomes the Marriott Hotel Armenia.

Hilton International last month announced a deal for a five-star property in Moscow. It also plans to advance into St Petersburg, Kiev and Baku. by Angela Frewin

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