Park Plaza to operate 20 Russian hotels

Hotel operator Park Plaza Hotels (PPH) said its wholly-owned unit, Park Plaza Hotels Europe (PPHE), has signed 20-year management contracts with Russian developer Ferens Management for the operation of up to 20 new hotels in Russia. PPHE will also help identify and plan the new hotels. Ferens is owned by Renova StroyGroup, part of the Renova group of companies.

Ferens plans to set up a chain of 15 to 20 hotels in the next four to five year under the Park Plaza brand. The hotels will be either new buildings or redeveloped existing properties. The hotels will be located in major Russian cities, with populations of over 500,000, and are intended to include several hotels in Moscow and St. Petersburg. The new chain will have between 3,000 and 4,000 beds.

Ferens is currently in exclusive talks on two properties and is also actively reviewing a number of existing hotels for possible refurbishment. The build-out and development of the hotels is expected to be completed by the end of 2012.

‘We are delighted to have signed this contract with the Renova StroyGroup, who have a strong reputation for real estate development across Russia. Russia is becoming an increasingly popular destination for both business and leisure travellers who we believe are driving demand for quality hotel rooms. This agreement, which should over the next four years add approximately 4,000 rooms to our portfolio, gives us the opportunity to expand the Park Plaza brand and work with a reputable local partner to develop modern hotels in the mid-to-upscale segment of the market,' Park Plaza CEO Boris Ivesha said.