IHI announces major deal for growth in Russia

International Hotel Investments p.l.c. (IHI) has signed a major agreement with Intourist of Russia to jointly develop and invest in hotels in the four and five star categories across the Russian Federation.

The agreement , signed in Moscow, will see the Corinthia running hotels across Russia.

Intourist is a major player in Russia’s hotel and travel sector. The company forms part of the London-listed Sistema JSFC, one of Russia’s leading conglomerates with investments worldwide, principally in the technology sectors.

“IHI and Intourist have agreed to join forces and establish an equally-owned investment fund, initially capitalised with US$100,000,000, to originate, develop and invest in four and five star hotels in major cities across the Russian Federation, including Moscow. The parties are supporting the joint venture by way of their respective hotel and development expertise in establishing a joint management team to construct, refurbish and operate the joint venture’s hotels, “ IHI said today.

“Both sides bring significant resources and extensive expertise in the hotel sector to the joint venture, as well as an intimate understanding of the Russian hotel development market. The intention is to create Russia’s largest hotel chain, operating hotels under various brands including the Corinthia and Intourist brands.”

The agreement comes into force once regulatory and other procedures are completed in the coming months.

IHI already has experience of the Russian market through its ownership of the Nevskij Palace Hotel (picture), one of the leading hotels in St Petersburg.