International hotel chains in Russia

Abstract

PurposeThis study aims to investigate the recent changes in the strategies of international hotel chains in the Russian market, as well as their role in the sustainable development of small and medium towns as prospective local tourism destinations.Design/methodology/approachGeneral observation of the local environment, statistical analysis and a qualitative approach were used to reveal current developments in international hotel chains’ strategy in Russia, and new opportunities for a number of small towns to be embedded in the development of the Russian tourism market. The current scenarios were examined using the available secondary data, including federal statistics and relevant empirical studies, as well as case studies and personal interviews with industry experts that allowed access to respondents’ opinions and market knowledge.FindingsIn recent years, investment in the Russian regions has become more attractive for international hotel chains. Findings of the study add to the literature on emerging markets by presenting an overview of the main challenges facing international hotel chains in the Russian market and by stressing the facilitating effect of foreign hotel chains’ upon tourism infrastructure development in small and medium towns in Russian regions. The statistics presented, as well as key opinions of hoteliers and local authorities, contribute to an understanding of the strategies used by international hotel operators in emerging economies with reference to new evidence from Russia.Originality/valueThe main output of this study is that it yields a better understanding of the strategic movement of international hotel chains into the Russian regions and new opportunities to develop tourism infrastructure in small and medium cities situated in Russian regions as prospective tourism destinations.