Home / World Localities / Russian developer wants investors for mid-market hotel brand

Russian developer wants investors for mid-market hotel brand

Moscow-based, Pioneer Group, is looking for potential investors and or partners to bring its mid-market Ye’s apart-hotels brand to the UAE and the wider GCC.

With the support of leading Japanese architectural and urban design firm Nikken Sekkei, the Pioneer Group will be showcasing existing developments in Moscow and St Petersburg, at Cityscape Global this week.

Pioneer is confident that the new mid-market hospitality brand from Russia will peak the interest of potential Middle East partners, in a regional hotel and apartment market dominated by major international luxury brands.

“The YE’S apart-hotel brand is a unique mid-market product, accessible to a wide range of investors, offering apartments fully furnished and ready for leasing with the added benefit of professional hotel management.

“This format is ideal for both business and leisure visitors – long staying corporate guests as well as short stay family getaways, affording investors a regular monthly income, with annual returns of up to 10%,” said Leonid Maksimov, chairman of the Pioneer Group’s board of directors.

According to Dubai’s tourism authority, Russian tourist arrivals for the first half of 2018 grew year-on-year by 74% to 405,000 and is now one of the emirate’s top five source markets.

“That is why YE’S is such an attractive proposition for UAE investors. Russian tourists particularly those from Moscow and St. Petersburg will recognize the brand and its value-led offering. With more and more mid-market tourists expected to arrive in the UAE from Russia, demand will be robust and sustainable” continued Maksimov.

Pioneer specialises in the implementation of urban planning projects with multi-functional and complex residential developments and subsequent management services. Since 2001, the company has attracted funds from institutional investors and private individuals at the construction stage.

The Y’ES apart-hotels boasts high quality finishes, which come fully equipped with European furniture and household appliances. The developer also offers professional property management support.

Maksimov said: “The unique characteristics of the YE’S apart-hotel brand guarantee a high occupancy rate in the first year of operation. The financial model of the project provides for an annual yield of 10%, which is approximately 1.5 – twice more profitable than independently investing in any one-room apartment.


Story continues below