The confiscation of Marton hotels has set a precedent for the tourism industry in southern Russia.

The Marton hotel chain in Krasnodar held a significant market share. The simultaneous closure of its hotels will seriously damage the industry and consumer confidence, according to tourism industry representatives.

As reported by the "Caucasian Knot," on October 14, Moscow's Ostankino Court upheld the Prosecutor General's Office's claim against former Supreme Court judge Viktor Momotov and Kuban businessmen Andrei and Ivan Marchenko, ordering the seizure of their assets—approximately 100 properties, including the buildings of approximately 40 Marton hotels in various regions—for state control. The properties are located in nine Russian cities, including in the south of the country: 43 of them are in Krasnodar, 26 in Rostov-on-Don, 11 in Volgograd, and two more in Sochi. The chain's directors, Andrey and Ivan Marchenko, have been under arrest in Krasnodar since September. Irina Sokolova, manager of the Trans Tours travel agency, told the Caucasian Knot newspaper that Marton owned approximately 15 hotel properties in Krasnodar. "This is a very significant chain for the tourism market, especially in the affordable housing segment. Most of our clients, whether transiting to the coast or on business trips, choose Marton because of its price-quality ratio. The chain operates reliably, reviews are generally positive, and the brand is recognizable," she said. Most of the Marton hotel chain's properties are located in the southern regions of Russia – Krasnodar Krai, Rostov Oblast, and Volgograd Oblast. According to the chain's official website, there are 17 properties (15 hotels and two bathhouses) operating in Krasnodar. Rostov-on-Don has nine hotels and one bathhouse, with the opening of a tenth hotel also announced on the website. Volgograd has four Marton hotels. The remaining five cities outside the Southern Federal District where the chain operated had a total of eight hotels.

"If the hotels are confiscated and closed, even temporarily, it will be a blow to the market. Even though it's off-season, a significant portion of the hotel inventory will still be lost. Prices for the remaining hotels will immediately increase by 20-30 percent, and tourists will start looking for alternatives in neighboring cities. This isn't ideal for Krasnodar as a transport hub. But according to my information, the hotels are still operating normally, and we are in constant contact with them," Sokolova said.

In her 15 years of operation, she has never encountered a confiscation of a hotel chain of this scale. "I don't recall such large-scale confiscations of hotel chains in recent years. There were isolated cases – individual sanatoriums in Crimea after 2014, a couple of hotels in Sochi due to debt. But an entire operating chain of nearly fifty properties – that's unprecedented in the Russian tourism industry," she noted.

Maksim Vetrov, a representative of the travel company "One Hundred Roads," also calls Marton one of the largest players in the Krasnodar hotel market.

"Maybe even the largest in terms of number of properties. They're everywhere – in the center, near train stations, in residential areas. For budget tourists and business travelers, they're the main choice; personally, a third of my clients choose their hotels. Therefore, confiscation will definitely create chaos. Imagine if all 17 of their properties were closed in one hour; the rest would physically be unable to accommodate all their clients. There would be a shortage of rooms, rising prices, and dissatisfaction among tourists. "Plus, Krasnodar's reputation as a tourist destination will suffer: no one will want to book if the hotels can close at any moment," he said.

He also doesn't recall any similar major scandals involving the confiscation of hotel chains. "I don't know of any mass confiscations of hotels. There was a case with a hotel in Gelendzhik that was seized for bank debts, but they quickly found a new manager. This is a different scale; it's a unique situation for the Russian tourism industry," he noted.

Anton Belov, a lawyer specializing in corporate law, believes the hotel chain will be sold. "When property is confiscated in a criminal case, it is first seized, and a temporary manager from the Federal Property Management Agency is appointed. They will decide the fate of the properties: this could be either a sale at auction or transfer to state ownership for further operation. Experience shows that hotels are usually sold, as the state is reluctant to manage commercial real estate. In the meantime, hotels could theoretically continue operating under temporary management unless a court orders their operations suspended. The seizure could last for months until a verdict is issued and the confiscation takes place," he told the "Caucasian Knot."

For hotel clients, the situation is quite complicated, he admitted. "Legally, the owner or interim manager is obligated to fulfill their obligations under the booking agreements. If a hotel is forcibly closed, guests have the right to a refund and compensation through the courts. Online services typically refund customers and then resolve their issues with the hotel, but automatic relocation to other hotels is not provided for by law," he noted.

Svetlana Yan, a representative of the Krasnodar tourism industry, believes the hotels will not close. "Apparently, the hotels will not close. There will be an interim manager, and the hotels will continue to operate as usual. The state is interested in profiting from assets, not in losses from downtime. Most likely, in six months to a year, they will be sold to a new owner, preferably with the brand preserved," she told the "Caucasian Knot."

According to her, the management company or booking platforms will deal with the guests. "If someone booked a room online and arrived, and the hotel is closed, any service will refund the money and help find a replacement. If they booked directly, it's more complicated; they'll have to request a refund from the hotel. As for relocation, it's unlikely they'll do that in this situation," Yan suggested.