Hotel occupancy in Moscow and St. Petersburg go strong

JLL: “Jan-Set 2016 proven to be extremely positive for the hotel markets of two Russian capitals”
Hotel occupancy in Moscow and St. Petersburg go strong
28 October 12:48 2016 Print This Article

In Jan-Set 2016, hotel occupancy in Moscow grew 5% over the same period last year to a record 72%. In St. Petersburg, it reached 69% or +2.7% over the same period in 2015, reads the JIL Q3 2016 results of the quality hotel market report.

According to the real estate services firm, 2016 will be extremely positive year for the hotel markets of the both capitals.

“This year has so far proven to be extremely positive for the hotel markets of two Russian capitals. Very strong improvements to operational indices of the previous year have been recorded, and we see no reasons for the progress to slow down.” – Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS, said.

In Moscow, in the first three quarters of 2016, hoteliers increased ADR (Average Daily Rate) by almost 8% with market average of RUB7.5 thousand. The RevPAR, therefore, grew 15% to RUB5.3 thousand revenue from each available room on the market. According to the JLL report, Luxury segment was the most profitable in the reported period with 83% of rooms occupied and the RevPAR reaching RUB11.5 thousand (+22%).

St. Petersburg also saw very good results: city-wide hotels sold 69% of rooms YTD by the end of Q3 (+2.7%), rates grew by almost 20% (to RUB6.3 thousand) and RevPAR by 24% to RUB4.2 thousand. The victorious segment in the northern capital of Russia was the Midscale, which registered RevPAR YTD up 31% and a 24% increase in ADR (to RUB 3,150).

“In general, St. Petersburg is now playing a rate game.” – Tatiana Veller said. – “Occupancies have exhibited single-digit growth YTD in all segments (from 0.3% in Upper Upscale to 3.7% in Midscale) while the ADR grew by a minimum of 17% (in Upper Midscale segment). This shows that the hotel owners and operators are starting to reap the rewards of continued interest to their home city as a tourist destination.”

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Anastasia
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