New Hyatt hotel to open in Moscow as chain sees huge potential in Russia

Modern Russia interviews Takuya Aoyama, Vice President of Acquisitions and Development for CIS and Russia for Hyatt International on the new Hyatt hotel in Moscow.

What can you tell Modern Russia about Hyatt’s latest plans in Moscow?

As a center of political, economic and cultural life in the former Soviet Union, Moscow is a critical market for Hyatt as the company continues to reinforce its commitment to becoming the most preferred brand among guests, owners and associates in every segment we serve,

Ararat Park Hyatt Moscow has been operating successfully for 10 years, and in addition to the Park Hyatt luxury brand, the Moscow market can support other Hyatt brands to serve various needs of both domestic and foreign guests.

Why did your company decide to build a second Hyatt hotel in Moscow? Why this particular location within the city?

Hyatt has been looking for opportunities to expand its presence in the Russian capital, and Hyatt has always believed in the market’s potential. Even with the success of Ararat Park Hyatt Moscow, Hyatt has been aware that one luxury hotel is not enough to serve its existing and potential guests who may have varying expectations towards hotel experience and price.

Hyatt was immediately drawn to the Dynamo project, as it is an iconic development at the gate of central Moscow, located on the corner of Leningradsky Prospekt and Third Ring Road, and is in close proximity to a metro station, making it easily accessible and visible to guests. Hyatt is excited about the opportunity to work with the VTB Group on this project.

What special features will the new hotel offer?

Hyatt Regency Moscow will feature 297 guestrooms, including 40 suites, 56 fully furnished luxury apartments, multiple dining options and meeting facilities. The property will also have a sizable fitness center and spa, reflecting the development concept of the Arena Park project, which consists of a new football stadium, ice hockey/basketball arena, retail and entertainment zones, offices and residences.

What is Hyatt’s view on the tourism and hospitality industries in Russia? Is there anything unique to the Russian hotel industry?

As the largest country in the world, Russia spans nine time zones and has significant population centers. Located between Asia and Europe, Russia has a great cultural heritage, vibrant art life and unique culinary tradition, and very hospitable people. Yet, the country is under-supplied with modern hotel options. This is why Hyatt is excited about Russia’s potential in the hospitality and tourism industries. 

What does Hyatt hope to bring to the hotel market in Russia? What are Hyatt’s future plans in the rest of the world?

Hyatt’s mission is to provide authentic hospitality by making a difference in the lives of the people it touches every day. Hyatt’s strategy is to become the most preferred brand among guests, associates and owners in each segment it serves, and Hyatt is looking to expand existing relationships as well as find new partners in the Russian market in order to achieve that goal.  While Hyatt is still relatively small in terms of its distribution in Russia, the company looks for opportunities to deepen its presence in Moscow and gain representation of its family of brands – particularly Andaz, Hyatt Regency and Hyatt Place – in regional cities. In addition to its geographical set up, Russia’s culture of hospitality is an important underpinning for long-term success for Hyatt and for the country as a whole.

Hyatt is committed to ensuring product and brand integrity across its portfolio and making sure that guests receive a consistent Hyatt experience at all of hotels around the world. More than 40 properties opened under various Hyatt brands worldwide in 2011, and currently, there are more than 170 executed contracts for Hyatt-branded hotels worldwide.

How has it been conducting business in Russia? What has been your experience with the business climate in Russia?

Over the last 10 years, Hyatt has operated two hotels in Russia with management agreements, and the experience in the Russian market has been nothing but positive. Hyatt is fortunate to have very supportive hotel owners and talented and motivated associates, and Hyatt’s success will continue to build on its solid partnership with owners, the dedication of its associates and its commitment to brand integrity.

Currently, Hyatt owns and operates Ararat Park Hyatt Moscow and Hyatt Regency Ekaterinburg, and over the next three years, the company plans to grow its existing presence in Moscow, as well as expand into two new Russian markets – Sochi and Vladivostok.

Four Hyatt-branded hotels are anticipated to open between 2012 and 2015:

• Hyatt Regency Vladivostok, Golden Horn and Hyatt Vladivostok, Burny, which will be the third and fourth Hyatt-branded hotels in Russia, are under construction and expected to open in advance of the Asia-Pacific Economic Cooperation (APEC) Summit in the fall 2012.
• Hyatt Regency Sochi is under construction and expected to open in late 2013 in Sochi, which is the host city of the 2014 Winter Games.
• Hyatt Regency Moscow is expected to open in 2015, and will be part of the Arena Park redevelopment, including Moscow’s notable Dynamo football stadium, and will sit adjacent to Petrovsky Park.