It’s not just about the World Cup: Moscow and St. Petersburg hotel markets keep growing in Q1 2019

Q1 Moscow branded hotel market results
Q1 St. Petersburg branded hotel market results
Q1 Moscow Region hotel market results

JLL presents the Q1 2019 results of the branded hotel market* in Moscow, Moscow Region and St. Petersburg.

“According to the market players’ expectations, 2019 should bring everybody ‘back to reality’ after the World Cup haze vanishes, as well as become the resilience test of the international community’s interest to Russian cities. The start of the year on the two main hotel markets in Russia does not give any reasons to worry,” – says Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS.

In Q1 2019, Moscow hotels continued to enhance their operational results compared to the same period in years before. The occupancy grew by 2 ppt and reached a record 67% coupled with a modest increase in ADR – less than 1%, up to RUB 7,000. As a result, Moscow hotels’ RevPAR rose by 5%, to RUB 4,500.

Generally similar situation has been evolving in St. Petersburg hotel market: the occupancy growth of 3 ppt vs. Q1 2018, allowing to fill 42% of total market room stock. A slight uptick in ADR by 1.4%, to RUB 4,300 resulted in a 5% growth of RevPAR, to RUB 1,800.

In Moscow the leader in occupancy was the Upper Midscale segment with 74%, and the leader in this index’ dynamics was Upper Upscale (growth by 7 ppt, to 60%). The only drop was noted in the Midscale segment (by 3 ppt, to 63%). The highest percentage of rooms sold in St. Petersburg was in the Upscale segment – 59%, and the best dynamics – in Midscale (growth by 4 ppt, to 40%).

“Luxury hotels became the only segment of the Moscow market which recorded growth of all operational indices in the first three months of 2019. This included the highest among segments hike of ADR (by 4%, to RUB 18,600). Aided in the background by the occupancy recovery to 56%, RevPAR increased by 7%, to RUB 10,400,” - comments Tatiana Veller. – “The number of guests in the most expensive hotels of the Northern capital fell slightly: here occupancy decreased by 1.2 ppt, to 36%, compared to Q1 2018, however, they were ready to pay more: ADR grew by 3.5%, to RUB 12,000. As a result, RevPAR remained at the same level of RUB 4,300. It should be noted that Luxury was the only hotel segment in St. Petersburg where occupancy dropped in the beginning of the year.”

In Q1 2019, occupancy increased in the Moscow Region resorts by 3 ppt, to the highest in the last four years level of 53%, while losing 13% in the rate. ADR decreased to the lowest number in the same period, RUB 4,700, thus RevPAR fell by 7.5%, to RUB 2,500. 

Moscow, St. Petersburg, April 24, 2019 – JLL presents the Q1 2019 results of the branded hotel market* in Moscow, Moscow Region and St. Petersburg.

“According to the market players’ expectations, 2019 should bring everybody ‘back to reality’ after the World Cup haze vanishes, as well as become the resilience test of the international community’s interest to Russian cities. The start of the year on the two main hotel markets in Russia does not give any reasons to worry,” – says Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS.

In Q1 2019, Moscow hotels continued to enhance their operational results compared to the same period in years before. The occupancy grew by 2 ppt and reached a record 67% coupled with a modest increase in ADR – less than 1%, up to RUB 7,000. As a result, Moscow hotels’ RevPAR rose by 5%, to RUB 4,500.

Generally similar situation has been evolving in St. Petersburg hotel market: the occupancy growth of 3 ppt vs. Q1 2018, allowing to fill 42% of total market room stock. A slight uptick in ADR by 1.4%, to RUB 4,300 resulted in a 5% growth of RevPAR, to RUB 1,800.

In Moscow the leader in occupancy was the Upper Midscale segment with 74%, and the leader in this index’ dynamics was Upper Upscale (growth by 7 ppt, to 60%). The only drop was noted in the Midscale segment (by 3 ppt, to 63%). The highest percentage of rooms sold in St. Petersburg was in the Upscale segment – 59%, and the best dynamics – in Midscale (growth by 4 ppt, to 40%).

“Luxury hotels became the only segment of the Moscow market which recorded growth of all operational indices in the first three months of 2019. This included the highest among segments hike of ADR (by 4%, to RUB 18,600). Aided in the background by the occupancy recovery to 56%, RevPAR increased by 7%, to RUB 10,400,” - comments Tatiana Veller. – “The number of guests in the most expensive hotels of the Northern capital fell slightly: here occupancy decreased by 1.2 ppt, to 36%, compared to Q1 2018, however, they were ready to pay more: ADR grew by 3.5%, to RUB 12,000. As a result, RevPAR remained at the same level of RUB 4,300. It should be noted that Luxury was the only hotel segment in St. Petersburg where occupancy dropped in the beginning of the year.”

In Q1 2019, occupancy increased in the Moscow Region resorts by 3 ppt, to the highest in the last four years level of 53%, while losing 13% in the rate. ADR decreased to the lowest number in the same period, RUB 4,700, thus RevPAR fell by 7.5%, to RUB 2,500. 

Source : http://www.jll.ru