Largest hotels of Russia by 2019 revenue

Events of 2020 will become history. COVID-19 pandemic changed the style of life for all people, and limited freedom of choice and movement. Tourists from all over the world could not carry out their travel plans, and the majority of countries were forced to close boarders due to COVID-19 outbreak. As a result, spring and summer tourist seasons failed. However, domestic tourism in Russia started on July 1, 2020. Therefore, the Information Agency Credinform has prepared a ranking of the largest hotels of Russia. Using the Information and Analytical system Globas, the experts of the Agency selected TOP-10 hotels of Russia by 2019 revenue, and analyzed their income.

Hotel complex Izmajlovo, Radisson chain of hotels (excluding Hotel Ukraina) and resorts in Sochi – Rosa Khutor and Krasnaya Polyana are not included in the ranking because they are chain of hotels and have more than 1 tourist accommodation facilities.

Table 1. TOP-10 of the largest hotels of Russia by 2019 revenue, and their income
No. Name Revenue, billion RUB Income, billion RUB
1 Taleon Imperial Hotel
Saint Petersburg
4,9 - 9,6% 7,4
2 Hotel Ukraina
3,6 - 14,0% 3,8
3 Lotte Hotels Moscow
3,5 -21,0% 5,2
4 Ritz Carlton Moscow
2,9 -26,0% 2,9
5 Metropol
2,3 - 11,0% 3,2
6 Four Seasons Hotel Lion Palace St. Peterburg
Saint Petersburg
2,1 -6,5% 3,7
7 Astoria
Saint Petersburg
1,8 - 3,0% 1,9
8 Grand Hotel Europe
Saint Petersburg
1,6 - 1,7
9 Hotel Cosmos
1,6 - 9,3% 1,9
10 Hotel National
1,1 -17,0% 2,9

Taleon Imperial Hotel with the highest revenue of 4,9 billion RUB is ranked the first. The hotel is located at the historical center of Saint Petersburg, 5 minutes from the Palace Square and Winter Palace. The location and the hotel itself have long history. By the order of the Empress Elizaveta Petrovna in 1755, during the construction of the Winter Palace, temporary wooden Winter Palace was built at the intersection of the Moika River and Nevsky Prospect. In 1766, it was demolished by the Order of the Commission on the stone construction of Saint Petersburg on the ban on construction of wooden buildings. In 1771, the classical style palace was erected on the same area, and this was the beginning of Taleon Imperial Hotel long history.

Hotel Ukraina is ranked the second by revenue (3,6 billion RUB). Built in 1957, now the hotel is the last Stalinist style skyscraper in Moscow. Initially, it should be named as hotel building in Dragomilovo, and the name “Ukraina” was given under N. S. Khrushchev's rule. It is the Stalin's empire style building with a total space of over 88 thousand square meters and 206 meters height. The hotel stands in front of the House of the Government of the Russian Federation. Since 2019, the building is under the management of Radisson Hotel Group.

The third in the ranking is Lotte Hotels Moscow (3,5 billion RUB), the chain of international luxurious hotels owned by the South Korean company. There are 4 accommodation facilities under the Lotte brand in Russia, located in Moscow, Saint Petersburg, Samara and Vladivostok. Total 2019 income of the hotels in Russia amounted to 5,2 billion RUB.

Ritz Carlton Moscow (2,9 billion RUB), another chain of international hotels, is the fourth in the ranking. Ritz Carlton manages over 90 accommodation facilities in 30 countries. The hotel in Moscow was opened in 2007.

Then follows Metropol with the revenue of 2,3 billion RUB. One of the oldest hotels of Moscow is traced back to 1905. The modern style building is an object of cultural heritage. It owes its origin to entrepreneur and merchant Savva Ivanovich Mamontov. The greatest artists of the time took part in facades and interior decorations.

Four Seasons Hotel Lion Palace (2,1 billion RUB) is ranked the sixth. The hotel belongs to the international chain of luxurious hotels. It is popularly known as the “House with the lions,” as two white-marble lions guard the main entrance. This object of cultural heritage is the work of architect Auguste de Montferrand. Initially, the building was not supposed to be a hotel. The hotel was opened after the reconstruction in 2013.

The sevenths position belongs to Astoria with revenue of 1,8 billion RUB. The hotel is 2 minutes from Four Seasons Hotel Lion Palace. The official opening took place in 1912. During the First World War, the hotel complex accommodated high command officers of the Russian Empire. In the Soviet period, it was the 1st house of Petrosovet where top officials of the communist party lived. The story is that the leaders of Germany were going to celebrate the capture of Leningrad in Astoria, and even printed invitation cards. Fortunately, this did not happen.

Another famous hotel of Saint Petersburg, Grand Hotel Europe, is ranked the eighth with 1,6 billion RUB in 2019. World Travel Awards recognized it as the most luxurious hotel in Europe and the world. Each suit has the unique name and style. For example, one of the suits is named in honor of Fyodor Mikhailovich Dostoevsky, who stayed in the hotel for several times.

Hotel Cosmos near the Exhibition of Achievements of the National Economy in Moscow has the ninth position by revenue (1,6 billion RUB). The hotel was built to accommodate foreign guests during the summer Olympic Games in 1980.

Moscow hotel National (1,1billion RUB) is the last in the ranking. Currently, it is the only Russian hotel of The Luxury Collection brand.

The results of the ranking shows that all hotels from TOP-10 had decrease in 2019 revenue. The lower figures are due to the World Cup was held in Russia in 2018, and tourists and fans from 32 countries came to see the finals. After the end of the championship, the turnover of the Russian hotels returned to the usual level. However, it is expected a significant decline in 2020 revenue and income of all hotels in Russia due to COVID-19 pandemic.

Legislation amendments

Two important laws concerning the activities of limited liability companies were adopted. Among them are the Federal Law No. 251-FZ of 31 July 2020 «On Amending Article 94, Part 1 of the Russian Civil Code» and the Federal Law No. 252-FZ of 31 July 2020 «On amending Federal Law «On Limited Liability Companies» to the Extent of Improving the Procedure for Recording in the Unified State Register of Legal Entities Information on the Exit of a Limited Liability Company Member from Such Company». There is a connection between the Laws.

The Law No. 251-FZ specifies the stage of share transfer to the company. In the previous version of the Article 94 of the Russian Civil Code, the moment of share transfer to the company was the receipt of an application or request by the company. According to the new version - this is the date when the record on shareholder's withdrawal was made in the Unified State Register of Legal Entities (EGRUL) or the date when the company received a request to purchase a share.

The Law No. 252-FZ brings the Law «On Limited Liability Companies» into compliance with the updated Article 94 of the Russian Civil Code.

Thus, the new Article 23 states that the calculation of the actual share value should be based on the financial statements for the reporting period that precedes the date of transfer to the company of the excluded member share, not the date of application filing, as it was before. At the same time, the date of share transfer to the company will be the date of entry in the EGRUL or receipt of withdrawal application by the society.

In the new Article 26, there are additional paragraphs, that:

  • oblige the notaries, who certified the withdrawal statement, to submit to the registration authority by means of a digital signature the relevant application on changes in the Unified State Register of Legal Entities within 2 working days from the date of certification, and to send a certified withdrawal statement to the registered office within 1 working day;
  • provide the possibility to fix in the Charter the priority of withdrawal for the members who may be specified by name or like the shareholder with specific characteristics (ownership of a certain share);
  • fix in the Charter the possibility to make the rights of members for withdrawal dependent on the occurrence or absence of certain circumstances, terms or a combination of these factors;
  • fix in the Charter the right for withdrawal by a decision of the General meeting of shareholders adopted by a solid vote. At the same time, the shareholder with such right and the duration of the right should be indicated. This provision does not apply to the withdrawal of a credit institution member.

Thus, the legislation amendments simplify the process of the shareholder's withdrawal and exempt companies from obligation to submit the documents for state registration. However, the expenses on the procedure may increase due to the growth in notaries’ powers.

All information related to the limited liability companies (including historical data) is available in the Information and Analytical system Globas.