Cosmos Hotel Group

Cosmos Group is one of the largest hotel management companies in the Russian market, which provides a full range of services from project consulting and preparation of facilities for opening to optimizing costs and increasing asset capitalization.

Aktivs

As of July 2018, the Cosmos Group portfolio includes 17 hotels in 14 cities of Russia and the world, including facilities under well-known international brands (Park Inn by Radisson and Holiday Inn Express), as well as independent hotels owned by AFK Sistema. Cosmos Group performs operational management of these assets.

The number of rooms under the management of Cosmos Group has about 4 thousand rooms in hotels of various price segments from 3 to 5 stars in tourist and business centers: these are city business hotels, as well as luxury resort complexes in Russia, Italy, Namibia and the Czech Republic. The largest asset is the Cosmos Hotel in Moscow (1,777 rooms).

The diversified portfolio of hotels includes objects of different levels, types and geography of location, while the main focus of the company is on urban business hotels of the 3-4 star category. Cosmos Group is also developing a line of its own hotel brands created in 2017:

• My Cosmos - for modern stylish urban hotels,
• Cosmos - for classic business hotels,
• Cosmos Collection - for premium hotels and
• CosmosStay for apartment complexes.

Performance indicators

2023: Revenue growth 2.4 times to RUB 11.9 billion

The largest hotel operator in Russia, Cosmos Hotel Group, completed 2023 with revenue growth of 2.4 times compared to the previous year - up to 11.9 billion rubles. The company, which is part of AFK Sistema, announced this in early April 2024.

According to Interfax, citing materials from Cosmos Hotel Group, in 2023 revenue increased due to the growth of domestic tourism, the expansion of the target audience and the range of tourist services, the implementation of a flexible sales policy, the implementation and control of uniform quality standards for the services provided. OIBDA (operating income before depreciation of fixed assets and intangible assets) in 2023 increased by 3.8 times compared to a year earlier - to 4.1 billion rubles. The group's net income was not disclosed.

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The scaling of the business and the implementation of strategic goals aimed at increasing competitiveness and operational efficiency made it possible to achieve record values ​ ​ for the Company financial and operational indicators, "said Alexander Biba, President of Cosmos Hotel Group, commenting on the annual results of the company.

By the end of 2023, Cosmos Hotel Group had 37 hotels of categories 3 * (city hotels) to 5 * (premium hotels, including resort complexes) in 22 cities of Russia. The volume of the number of rooms was 10 thousand units, which is twice as much as it was by the end of 2022.

Alexander Biba said that in 2024 the company will continue to develop the network with an increased presence in the management, rental and franchise segments, including for facilities with a small number of rooms. In addition, the group will continue to improve efficiency by optimizing and automating operational processes, he said.^[1]

2017

At the end of 2017, revenue increased by 54.5%, OIBDA and OIBDA profitability - by 74.5% and 2.2 percentage points, respectively, thanks to the successful integration of RGS hotels into the hotel business of AFK Sistema, as well as improving the efficiency of the Cosmos hotel complex and other largest hotel assets under the management of Cosmos Group. RGS hotels showed revenue growth of 18% to 1,567 million rubles, revenue of other hotels managed by Cosmos Group increased by 8% to 2,761 million rubles. Compared to 2016, hotel occupancy increased from 49% to 56%, and the RevPAR (Revenue per Available Room per day, yield on the available room per day) indicator reached 1909 rubles in 2017.

Recreational hotels were actively developed - Emerald Forest in Klin, Moscow Region and Altai Resort (Altai Republic), where the infrastructure was significantly expanded. In November 2017, the Holiday Inn Express Moscow Paveletskaya Hotel was opened for 243 rooms in the center of Moscow. Thanks to its good location and recognizable international brand, hotel occupancy should exceed 50% in 2018.

Against the background of growing demand for domestic tourism and the development of the hotel business in Russia, the hotel management service is becoming extremely popular among hotel property owners. The main drivers for the development of the hotel market in Russia will be the FIFA World Cup in 2018, an increase in the inbound tourist flow to Russia (in 2017 - 14%), as well as the development of domestic tourism, which demonstrates an increase of 5-10%. In hotels located in the cities where the games are held ChM-2018 in particular, Moscow, Sochi, Kazan and Volgograd, where there are 5 hotels of AFK Sistema Group, as well as 1 hotel managed by Cosmos Group, revenue growth is expected in 2018.

The main strategic goal of Cosmos Group is leadership among hotel operators in Russia and expansion into the European hospitality market. The key direction of the company's development is to improve the operational efficiency and service level of hotels. Thus, in 2018, it is planned to increase the gross operating profit (GOP) of the hotel pool under the management of Cosmos Group by 17% compared, primarily through revenue and cost management programs developed for each hotel. In addition to organic changes, Cosmos Group plans to attract independent owner hotels on the horizon for several years in order to double the number of rooms under management. An important role in the development of the company is also played by the development of a line of its own hotel brands - Cosmos Hotels and More.

History

2024: Getting the right to manage a five-star hotel in Gelendzhik

Cosmos Hotel Group, part of the AFK Sistema group, will be the operator of a 5-star hotel in Gelendzhik, which will be built by the Krasnodar developer Neometria. The corresponding agreement was announced on March 6, 2024.

A hotel with 1 thousand rooms will be built on a plot of land with an area of ​ ​ 16 hectares in the area of ​ ​ the Thin Cape in Gelendzhik. The complex will consist of buildings from one to four floors, as well as free-standing cottages. A complex of swimming pools, sports and playgrounds, tennis courts, a network of walking paths and recreation areas will also be provided on its territory. The volume of investments in the project will amount to 22 billion rubles.

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Managing partner of Ivashkevich Hospitality Stanislav Ivashkevich, in a conversation with Kommersant, suggested that 100-300 rooms would operate as a hotel, and the remaining areas could be sold as apartments. The expert estimated the proceeds from the sale of the latter at 14-15 billion rubles with an average price of 700 thousand rubles per 1 sq. m. The developer needs to retain more than half of the area, otherwise control over the object may be lost, the expert believes.

Management companies typically receive about 10% of the hotel's revenue, he said. Cosmos Hotel Group's revenue in the project will depend on the number of units under management, he added.

Vladislav Nikolaev, regional director of the Nikoliers strategic consulting department, told the publication that by March 2024, three large five-star hotels were operating in Gelendzhik, one of which was launched back in 1996, as well as two notable four-star projects. The new complex may become promising, the expert believes. At the same time, he adds that objects in Gelendzhik, as a rule, are difficult to load in the offseason: in February - April and November -^[2]the cape

2023

Construction of a resort with a five-star hotel in the Caspian for billions of rubles

On January 14, 2024, information appeared that one of the largest hotel operators in Russia, Cosmos Hotel Group, part of AFK Sistema, will be engaged in the construction of a new resort complex on the shores of the Caspian Sea in Dagestan. The cost of the project is estimated at several billion rubles.

In September 2022, President Vladimir Putin instructed to build year-round resorts on the Baltic, Azov, Black, Caspian and Japanese Seas, as well as create a resort on Lake Baikal. At the same time, the state intends to invest up to 12 billion rubles in the Caspian coastal cluster, which will be adjacent to the beach line along the cities of Makhachkala, Derbent, Kaspiysk and Izberbash.

Cosmos Hotel Group will build a new resort complex on the shores of the Caspian Sea in Dagestan

According to RBC, Alexander Biba, President of Cosmos Hotel Group, spoke about the resort project in the Caspian. According to him, the company owns several land plots of about 20 hectares on the coastline in Derbent. It is planned to build a number of four and five star hotels on this territory.

The project will be attended by the corporation "Кавказ.РФ," which will develop the necessary infrastructure. The estimated amount of investment in the creation of the resort as of mid-January 2024 was not disclosed. The cost of one room, according to Biba, will be at least 10 million rubles. And this means that the construction of hotels will require at least 5 billion rubles. Actual work will begin no earlier than 2025.

Cosmos Hotel Group is also exploring the possibility of participating in the construction of another large all-season resort - "New Anapa" on the Black Sea. This large-scale project involves the construction of more than 100 hotels, which in total will number 15-25 thousand rooms of different categories. They will get access to a 17-kilometer sandy beach. The total investment in the project will exceed 350 billion rubles.^[3]

Opening of the first 5-star hotel

In November 2023, Russia's largest hotel chain Cosmos Hotel Group, part of Sistema's portfolio, announced the opening of its first 5-star hotel. It was named Cosmos Selection Dombay Diamond Hotel and is located in the village of Dombay in Karachay-Cherkessia. Read more here.

Construction of a recreational complex in Veliky Ustyug

At the end of October 2023, the Cosmos Hotel Group (CHG) hotel company, which is part of AFK Sistema, announced the construction of a recreational complex near the existing Santa Claus Estate in Veliky Ustyug in the Vologda Region.

According to a CHG representative contacted by Vedomosti, the new complex will be located on an area of ​ ​ 87 hectares. There will be a hotel and chalets with 200 rooms, as well as an amusement park, spa complexes, etc. By the end of October 2023, the project is under design and approval of documentation, the parameters of the object are under study, the group added.

Cosmos Hotel Group (CHG) announced the construction of a recreational complex near the existing "Fiefdom of Santa Claus" in Veliky Ustyug

CHG President Alexander Biba explained that the construction of the new complex is important for the region, since the "Patrimony of Santa Claus" is one of the most famous brands among adults and children in Russia. Marina Smirnova, head of the Commonwealth Partnership's hotel and tourism department, noted that the region lacks modern accommodation facilities.

Mikael Ghazaryan, head of the capital and investment markets department at IBC Real Estate, suggested that Sistema will need to invest 2-4 billion rubles in the new project. taking into account logistics and regional specifics.

"Fiefdom of Santa Claus" opened in 1998. During this time, the volume of financial investments in the development of the project exceeded 7 billion rubles. The complex includes the residence of Santa Claus, a tower for tourists and other infrastructure facilities.

In 2022, the flow of tourists to Veliky Ustyug amounted to 496 thousand people, which is 35% more than a year earlier. At the same time, the share of hotels above the level of three stars is only 24%, and there are no chain branded hotels by October 2023. Olga Shirokova, partner of NF Group, is confident that the new recreational complex will attract an additional stream of tourists, which will contribute to the economic development of the region.^[4]

Transfer of Radisson and Olympia Garden hotels to Cosmos Hotel Group brand

Hotels previously owned by the international company Wenaas Hotel Russia and operating under the Radisson Blu, Park Inn by Radisson and Olympia Garden brands Russia will begin operating under the Cosmos brand. This was announced by Cosmos Hotel Group on October 19, 2023.

In October 2023, Cosmos Hotel Group launches a large-scale rebranding of 10 hotels previously operating under the Radisson Blu, Park Inn by Radisson and Olympia Garden brands. Under a long-term franchise agreement reached with Radisson Hotel Group, nine hotels will begin operating under the Cosmos brands in collaboration with Radisson Individuals, the hotel group said in a statement.

It is also noted there. that the agreement on the extension of cooperation with Radisson Hotel Group was adopted on the basis of the company's strategy, the main goal of which is to consolidate Cosmos Hotel Group in the status of the leader in the hotel industry in Russia. The transition of hotels to Cosmos Hotel Group brands will be comfortable for guests, the company added.

The Wenaas Hotel Russia group in St. Petersburg operated six hotels at once under the Radisson brand: Park Inn by Radisson Pribaltiyskaya, Park Inn by Radisson Pulkovskaya, Park Inn by Radisson Nevsky, Radisson Blue Royal Hotel, Park Inn By Radisson Pulkovo and Olympia Garden Hotel. One each in Murmansk and Yekaterinburg: Park Inn by Radisson Murmansk and Park Inn by Radisson Ekaterinburg, as well as two in Moscow - Park Inn by Radisson Sheremetyevo and Radisson Blu Sheremetyevo Airport.

Earlier, as part of the rebranding program, seven hotels of the chain, operating under the Park Inn brand, began operating under the Cosmos Hotels brand. The decision was made based on the company's strategy, the main goal of which is to achieve the status of the national hotel chain No. 1, the group said^[5]

AFK Sistema will build a ski resort in Kuzbass

The Governor of the Kemerovo Region Sergei Tsivilev approved the project of a new tourist complex in Sheregesh. It will be implemented by AFK Sistema, the press service of the regional government said on October 6, 2023. Read more here.

AFK Sistema bought Radisson and Olympia Garden hotels in Russia

On February 1, 2023, AFK Sistema announced the purchase of ten hotels located in four cities of Russia from the Norwegian company Wenaasgruppen. The transaction will cost up to 203 million euros, but the final amount will be determined taking into account the balances of cash in the accounts of companies at the closing date of the transaction, the report said. This amount includes a ten percent so-called voluntary contribution to the Russian budget, which now must be paid by foreign sellers from transactions to sell their assets in Russia. That is, up to €20.3 million will be transferred to the budget. Read more here.

2022: AFK Sistema completely got rid of Western hotel brands

AFK Sistema completely got rid of Western hotel brands, which became known in early June 2022. This happened after Cosmos Hotel Group (CHG), a member of the corporation, terminated the agreement with the hotel operator Intercontinental Hotels Group (IHG), which managed two hotels - Holiday Inn Express Paveletskaya (243 rooms) in Moscow and Holiday Inn Express Voronezh (145 rooms) in Voronezh.

As the representative of CHG told Vedomosti, the hotels themselves will now operate under the Cosmos Smart brand. Thus, all the objects of the company are now completely under its management. Earlier, she transferred seven Park Inn hotels (the brand belongs to Radisson Hotel Group) in the regions and Courtyard by Marriott near the Paveletsky station in Moscow under her own brands, the newspaper reminds.

It is alleged that after the change of brand, hotels will continue to operate normally. The conditions of the existing reservations - price, quality of hotel services and their composition, (category of booked room, list of services included in the price of the room, etc.), rules for the provision of hotel services, the contractor providing hotel services - will not change either.

We thank IHG for many years of mutually beneficial cooperation. The increase in the number of hotels operating under its own brand Cosmos HG is in line with our development strategy. Taking into account the facilities that we plan to build, and more than 10 of them, as well as hotels of third-party owners, which will soon come under the management of Cosmos HG, the company will successfully fulfill the task of achieving leading positions in the domestic hotel market, - said the president of Cosmos HG Alexey Akindinov.

Cosmos Group, established in 2017, operates hotels owned by AFK Sistema. By the beginning of June 2022, the group's portfolio includes about 20 hotels in Russia and other countries with 4.8 thousand rooms.^[6]

2017: Creation of Cosmos Group

Cosmos Group was established in April 2017 as a result of the separation of the functions of ownership and management of hotel assets of AFK Sistema. The company's tasks include the management and development of hotels owned by AFK Sistema, as well as the provision of a wide range of hotel services to external counterparties: from developing a hotel concept and supporting design and construction to selecting a brand and managing hotels. Management fees make up the bulk of revenues - about 70%.

2016: Sistema acquires assets of Regional Hotel Chain Group of Companies

At the end of 2016, Sistema acquired the assets of Regional Hotel Network Group of Companies (RGS), increasing the number of rooms in the Group's hotel business by 1379 rooms.

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