As 2016 draws to a close Jones Lang LaSalle (JLL) Hotels & Hospitality has released the preliminary report on markets and hotels in Moscow and St. Petersburg. According to the report showed overall stability with a substantial ADR increase.
The forecast for 2017 revealed in the JLL report showed an overall strong demand with St. Petersburg hoteliers experiencing an average rate (ADR) increase since the beginning of the year 19% over the same period last year. Altogether this equated to something on the order of an increase in yield per available room (RevPAR) by 20%.
Moscow recorded the highest level in five years with the average rate per room increasing 14%. Within the Moscow market, the Deluxe segment showed the biggest: increased RevPAR compared to the same period in 2015, increasing by 19% to 11.5 thousand rubles. segment that lost in the average tariff (but not yield), was the middle segment (Midscale): record ADR here fell by almost 3% – less than 3,9 thousand RUB that apparently occurred in the pursuit of mass
The only segment that lost in the average tariff (but not yield), was the middle segment (Midscale): record ADR there falling by almost 3% – less than 3,9 thousand RUB that apparently occurred in the pursuit of mass tourism, which should fill in enough volume, and, consequently, competition, the number of rooms.
The report also reveals hotel managers in St. Petersburg benefitted from the early year policy of “quality, not quantity”, and travel demand, and increasing the tariffs. Suburban hotels continued to benefit from political tensions and limited opportunities to travel abroad. Tatiana Veller, Head of Hospitality at JLL, added this:
“We don’t foresee any big surprises in 2017. The political situation in the world and in our region is not improving, and the growth of incomes does not bode well for overseas destinations. We assume that the trend towards a relatively high level of tariffs will continue, but growth should slow down. By the end of 2017, prices may well improve in light of the 2018 World Cup.”
In Russia and CIS JLL offices in Moscow, St. Petersburg and Kiev. In 2004, 2006-2016 years, the company was awarded the prize “Consultant of the year” at Commercial Real Estate Awards, Moscow, the prize “Consultant of the year” at Commercial Real Estate Awards, St. Petersburg in 2009 and 2016, the prize “Consultant of the year” at RCSC Awards in 2015.
Image credit: Feature image courtesy the Corinthia Hotel St. Petersburg.