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Azimut Spreads Wings In Russia, Beyond

-- Hotels, 9/1/2008

Azimut Hotels Co. plans to continue growing over the next several years, with the ultimate goal of having the widest network of business-oriented 3- to 4-star hotels in Russia.
MOSCOWAzimut Hotels Co., founded in 2004 on the business model of acquiring and renovating old Soviet hotel buildings to international standards, is now the largest domestic business hotel chain in Russia, with 10 hotels in nine cities comprising 3,275 rooms.

With 2007 turnover of US$54 million, the company plans to continue growing over the next several years, with the ultimate goals of having the widest network of business-oriented 3- to 4-star hotels in Russia, from Murmansk to Vladivostok, and becoming a true international hotel company, according to Azimut board member Elena Lysenkova.

The 60+ employee company is lead by Chairman Aleksandr Klyachin, who says, “Demand for mid-market hotels is increasing yearly in the Russian market.” Projects currently under development include a hotel in Moscow and several more in other key Russian cities.

Azimut will also look to grow in Russia via management contracts, the demand for which “is in the initial stage of its development,” Lysenkova says.

Meanwhile, earlier this year, Central European Hotel Investments GmbH (CEHI), the parent company of Azimut, purchased Austrian Hotel Co. and its 20-hotel portfolio, which includes properties in Germany, Austria and the Czech Republic. CEHI, whose main shareholder is Klyahcin, is now in the process of converting the portfolio to the Azimut and Azimut Express brands through a comprehensive refurbishment program.

In addition, two new hotels in Germany (formerly projects in the Austrian Hotel pipeline) will open this fall under the Azimut name.

To help Azimut through its rapid growth, the company launched Azimut Corporate University a few years ago, “because the Russian hospitality market has limits in professional staff and potential employees, especially in regions,” Lysenkova says. “So, we have decided to hire new employees for hotels that sometimes don't have any hospitality experience but have the most important thing—a guest-oriented mentality and focus.”

Azimut University's teachers and trainers travel from city to city to work with these individuals and teach them according to their job functions. In addition to the training, a central reservations system is now in place for Azimut and a new IT systems platform is being procured.

At each Azimut property, guests will find a breakfast and lunch restaurant (that also services conferences and banquets) and a 24-hour lobby bar, while some properties also feature a casual-dining Italian concept for lunch and dinner or a casual-dining “beer and meat” restaurant.

Finally, in addition to the Azimut and Azimut Express brands, the company plans to develop the Azimut Resort concept sometime in 2009 or 2010.

Direct comments to: derek.gale@reedbusiness.com

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