REGIONAL PROFILE : RUSSIA
TO
RUSSIA LOVE
WITH
INTERSTATE GM LOVES LIFE IN MOSCOW , MANAGING THROUGH THE CHALLENGES .
By BARBARA BOHN , MANAGING EDITOR
Armin Eberhard ’ s placement in Moscow is the longest in his career . “ That says something for the destination , I think ,” says Eberhard , GM since 2013 of the Interstate Hotels & Resorts-managed Renaissance Moscow Monarch Centre Hotel . “ It ’ s the biggest city in Europe , and that has great appeal for me personally because of its diversity due to size and the number of people that live here .”
The city has changed even since his arrival after postings in places like Berlin , London and New York City . Despite the financial crisis that started in 2014 , the quality of life has improved , the culinary scene is exploding and it ’ s more transparent , diversified and modern — and more willing to compete with other international capitals .
The FIFA World Cup in June helped . “ It was a very exciting time . It was extraordinarily well-prepared , and we all had input into this toward the government to warn them of any kind of shortfalls here and there ,” Eberhard says . It served as an introduction to the city for many , and a re-introduction to those whose perception extends — not always fondly — back to the Cold War .
The current crisis , triggered by a fall in oil prices and international sanctions , has had a long tail : While currency remains unsettled , Eberhard says , the market has recovered , select-service has grown , and chains and brands are popping up . With a dropoff in European customers , he has seen the mix change to majority Russian and Central Asian ; India and China have helped pick up the slack . With 3,000 square meters of meeting space , those events form the core of the hotel ’ s business , bolstered by transient corporate customers and sports groups related to Dynamo Stadium nearby .
The 366-room hotel , owned by Russian construction giant MonArch , currently has a lean staff of 280 . “ We have shrunk quite a bit , but we ’ re still operating with a lot of labor because labor costs are still relatively low ,” Eberhard says . “ Because the ruble keeps on staying 40 % below where we were in 2013 , there have to be improvements in salaries .” As well , a change in laws aimed at foreign nationals is putting pressure on the semi-skilled labor force , which draws from Central Asia .
Rates , as well , are on the lean side ; and with no World Cup bump to welcome in the coming year , Eberhard is looking a bit cautiously .
“ Talking to the industry , in general , the expectations for next year ’ s goals are quite modest , in line with inflation . Maybe they ’ re above , but not much ,” he says . He can look out the window to new competition : a Hyatt Regency , similar in size and business customer target .
Renaissance Moscow Monarch Centre Hotel
46 hotelsmag . com December 2018