Bogachev, who also invests in agriculture and owns around 4 percent
of shares in Russia's top retailer Magnit, said he would invest
around $200 million in the Moscow hotel which will be operated by
Marriott International Inc.
The hotel on Moscow's central Bolshaya Nikitskaya street will
feature 65 rooms, 14 residential apartments, and a 1,600-square
meter spa area, Bulgari Chief Executive Jean-Christophe Babin and
Bogachev told a news conference.
It will open in 2019 to become the seventh hotel under the Bulgari
brand. Besides the existing hotels in Milan, London, and Bali, three
further establishments are due to open in Shanghai, Beijing, and
Dubai in 2017.
Bulgari, the flagship jewelry brand of luxury group LVMH, also has
another four hotel projects, likely to be unveiled in the next few
months, Babin said.
"In the next decade, probably, we will open five more, the target
being to be only in the most trend-setting cities or, like in Bali,
in the most trend-setting resort locations in the world. And
eventually we will probably have between 15 to 20."
On Tuesday, Babin told Reuters that Bulgari planned to add up to
four more stores in Russia over the next ten years after opening the
company's second store in Moscow.
"Not all brands agree that it's crisis time, not all brands are
resigned (to the fact) that times will be tough, we are ready to
fight," Babin said on Wednesday.
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"We are extremely confident in the future of Bulgari in Russia and
in the future of luxury in Russia," he added.
The global luxury sector has been knocked by a sales slowdown in
parts of Asia, while stores in European capitals and airports have
been deserted by many tourists after last year's attacks in Paris.
In Russia, consumer spending was hit by currency weakness after a
drop in global oil prices and Western sanctions over Moscow's role
in the Ukraine conflict.
(Reporting by Maria Kiselyova and Olga Sichkar; Editing by Dmitry
Solovyov and Alexandra Hudson)
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