Cheget (boarding house)

History

2024: Azimut Hotels buys Cheget boarding house

In July 2024, it became known about the acquisition by Azimut Hotels of the Cheget boarding house, located in the Elbrus region. The deal, aimed at expanding the network's presence in the popular tourist region, was completed in early 2024.

According to Kommersant, the Cheget boarding house, built in 1974, is located in the village of Terskol, Kabardino-Balkaria, in close proximity to the main entrance to the cable-chair road leading to Mount Cheget. The real estate object, previously owned by Elbrusturist JSC, was sold at auction for ₽151,6 million.

source = Cheget

Azimut Hotels, owned by entrepreneur Alexander Klyachin, plans to carry out a large-scale renovation of the acquired facility. Investments in reconstruction are estimated at ₽500 million. As a result of the modernization, the number of boarding houses will increase from 88 to 140 rooms. After completion of the work, the hotel will operate under the Azimut Park brand in the four-star category.

Market experts consider the deal beneficial for Azimut Hotels. According to Stanislav Ivashkevich, managing partner of Ivashkevich Hospitality, the construction of a similar hotel from scratch would cost about ₽1,5 billion. The estimated return on investment in Cheget is seven to eight years, which is significantly less than the average for the hotel industry.

The acquisition of Cheget corresponds to the strategy of Azimut Hotels to expand its presence in the Elbrus region, which the company announced back in 2022. The growing popularity of the region among tourists and the lack of quality hotels make this resort attractive to investors. According to data, in Rosstat 2023 the number of guests hotels in Kabardino-Balkaria reached 222.9 thousand people, an increase of 45.3% compared to 2022.

Olga Shirokova, partner of NF Group, notes a year-round increase in tourist flow in the Elbrus region. Sergei Romashkin, vice president of the Association of Tour Operators of Russia, predicts an annual increase in the number of guests by 5-10%. The expert also points to the potential for redistribution of tourist flow in favor of quality hotels.^[1]

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