Luxury hotels stay open in Russia amid dearth of tourists

Paris

FIVE-STAR hotels are still operating in Russia, but they are having to rely on locals amid sanctions on the country.

Luxury destinations such as the Ritz-Carlton in Moscow and the Four Seasons are offering stays that can cost as much as 284,375 roubles (S$2,863) a night.

Belmond has also kept its Grand Hotel Europe in St Petersburg open. The hospitality chain is owned by LVMH, which decided to shut down 124 stores in Russia earlier this month.

Belmond's example goes to show how some foreign companies like LVMH are stopping short of pulling out entirely from Russia, despite announcing store closures and other measures to reduce their presence, as it is still possible to service a hotel and provide all the typical amenities and services for now. A Belmond spokesman said the chain continues to monitor the situation as it evolves.

Marriott, the owner of Ritz-Carlton, said on March 10 that its hotels in Russia are owned by third parties and it continues to assess the ability for them to stay open. The group has closed its corporate office in Moscow and is halting investments in the country.

InterContinental Hotels Group said on March 10 that it is suspending new hotel openings in Russia, adding that it has "long-term management or franchise agreements with independent third-party companies that own the hotels in Russia".

Sanctions imposed on Russia are likely to drive away foreign tourists and have an adverse effect on hotels, Malta-listed International Hotel Investments said on March 3. The company owns the Corinthia chain, which has a luxury hotel that's open in St Petersburg not far from the Hermitage Museum, the biggest tourist attraction in the city. BLOOMBERG