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NEWS | Foreign hotel chains to double Russia presence by 2020

Despite the unstable economic situation and a reduction in hotel revenues, international hotel chains will double their presence in Russia in the next few years, professional services firm Ernst & Young estimates, with the number of rooms belonging to foreign companies set to rise to 61,000 by 2020.

However, only 50,000 rooms are estimated to be required to host the 2018 FIFA World Cup. Only a fifth of the new international hotels (amounting to 6,000 rooms) will be built in Moscow.

If the hotel companies are able to realize their plans, they will expand their presence to a total of 55 Russian cities. "Development in the Russian regions has always been a part of the international brands' strategy, but it was also dependent on the given market situation," says David Jenkins, Executive Vice President, Russia & CIS at JLL Hotels & Hospitality Group.

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