Russian Railways leases 45,000 m² for hotels to boost passenger services

Russian Railways (RZD) is launching a new project to improve passenger services at train stations. The company plans to lease out 45,000 square metres of space across 64 cities, including Moscow and St. Petersburg, to a professional hotel operator.

The move comes as RZD faces financial challenges, with net profits dropping sharply in 2025 despite higher revenues. RZD will offer unfurnished spaces for hotels and rest areas, though tenants can negotiate separate leases for furniture. The total monthly rent for all properties is set at 23.9 million rubles (around $260,000), with lease agreements lasting up to five years.

The project includes a variety of assets, such as an annex at Bryansk station, a ticket booth pavilion in Yaroslavl, and an administrative building at Rostov-on-Don station. An open auction will determine the winning operator, ensuring transparency and market-based pricing.

Under the terms, the chosen partner must maintain rest areas for passengers and guarantee consistent service quality. If successful, the initiative could generate annual revenues of 90 to 200 million rubles ($1–2.2 million) for RZD, depending on auction results.

This push for better station facilities follows a difficult financial year. In 2025, RZD’s net profit under IFRS fell 22-fold to 2.3 billion rubles ($25 million), even as total revenue rose by 10.4% to 3.638 trillion rubles ($40 billion). The project aims to upgrade passenger amenities while providing RZD with a new revenue stream. By partnering with a hospitality specialist, the company hopes to improve service standards across its network. The auction process will determine the final operator and financial terms in the coming months.