The main priority for Azerbaijan in the immediate future is to develop non-oil related industries of the country. One of the areas where the serious efforts are in place is tourism industry that enjoys support both from state and private sector in the development of modern infrastructure.

Intensive growth of Azerbaijan tourist sector led to boom in the hotel area. There are around 330 large and small hotels, motels, camping sites and guesthouses in Azerbaijan and two thirds of them have been opened in the last 6-7 years. Ministry of Culture and Tourism of Azerbaijan  are implementing a package of measures aimed at imposing stricter control over hotel business with special focus on Baku hotels. Baku hotels accommodate nearly two thirds of hotel customers in Azerbaijan.
Recent years clearly demonstrated that administrative measures are not efficient to regulate pricing and quality of services in hotel sector. Experts of Ministry of Culture and Tourism of Azerbaijan believe that the most optimal strategy to raise the standards of quality and decrease hotel rates would be to encourage large hotel chains to enter Azerbaijan market. A number of world hotel brands have expressed its interest in Baku hotel market and emerging opportunities it offers in the future.

Ministry has hold negotiations with several international hotel chains - Holiday Inn, Marriott, Sheraton, Kempinski, Rixos hotels - on establishing those brands in Baku. Apart from construction of new hotels they discussed the establishment of modern business-centers and congress-halls under the same brands. The interest seems to be mutual: according to Mr. Janni Van Daalen, VP, Russia & CIS, Kempinski a new luxe class hotel of this chain will be opened in Baku in within 2-3 years
Another hotel chain planning to establish its presence in Baku is Kingdom Hotels International from Saudi Arabia. Large projects on construction of hotel chain and recreation zones in Azerbaijan are in the plans of large international investment group - Sovereign Hospitality Holdings. Sovereign Hospitality Holdings' portfolio assets of $800 millions value as of today  include 21 hotels with around 4,000 rooms in Africa, Middle East and Europe. Company is planning to have 32 hotels in the next 3 years and several of the projects will be constructed in our country.

Apart from attracting to Baku leading hotel chains there are other plans of constructing 5 star hotels from independent developers. 'Boulevard Plaza' multistory hotel complex of very unusual architecture is planned to be constructed in Baku National Park (Boulevard). This complex will be one of the highest hotel buildings in Baku featuring various restaurants, gyms, cinemas and business-centers.

According to Fineko news agency projects of two disc-like hotels are developed by Korean architecture Heerim Architects & Planners company. The Full Moon Hotel will be disk-shaped and symbolize Full Moon, it will be 35 floors 158 meters high edifice with 382 rooms. The second 32 floors Crescent hotel is in bow shaped and symbolizes half Moon.

A famous 30 years Absheron hotel located near Government building will be changed beyond recognition.  A project of famous British architect Taylor Chapman envisage the reconstruction of Absheron to 5 star hotel of glass and concrete in high-tech style. The main feature of the new hotel will be transparent glass roof and decoration of top floors in ''metallic' style. The hotel will have 200 rooms, press-centers, conference rooms, several restaurants. Construction works has already been started by Pasha Construction.      

Several projects are being realized now: 5* Hilton Baku Hotel initiated by ISR Holding company, that already owns several hotels in Baku - ISR Plaza и Park Inn hotels. New hotel will be constructed in Baku downtown and will replace demolished 'Azerbaijan' hotel that was previously privatized by ISR Holding. New hotel will have 300 rooms, two restaurants, swimming pool, health centre, business centre and large parking space.

ISR Holding signed an agreement with Hilton Hotels corporation to use its brand for that new hotel. Interestingly, that interest is mutual since Hilton Hotels have been interested in Baku hotel market for couple of years now finding Baku not just a commercial, cultural, education and tourist center of Azerbaijan but of Southern Caucasus in general. All these and the fact that there are quite a few international hotel brands in Baku create unique opportunities for Hilton Hotels and other leading hotel operators to develop its business in Azerbaijan.

As have already been mentioned the entrance of top players of world hotel industry to Azerbaijan will lead to substantial changes in standards of quality in Azerbaijan hotel industry. The long term target of Azerbaijan tourism is to reach 3 million of tourists a year coming to Azerbaijan and at least half of them will be accommodated in Baku.

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