Moscow hotel market remains 5% down on RevPAR in 2015
According to JLL Hotels & Hospitality Group, following May’s results, Moscow remains 5% down on RevPAR for the year.
Luxury hotels continue to do well, in May alone there was a RevPAR increase of 20% over May last year (coming from an increase of 12% rate and 8% occupancy) to show that price rises are kicking in and still foreign travellers are seeing value in the segment. “Year to date the luxury segment is up 12% in ADR to RUB 15,200 and flat on occupancy, which is still encouraging given that the Four Seasons was not open this time last year,” says David Jenkins, Head of JLL Hotels & Hospitality Group.
Upper Upscale hotels had a 6% RevPAR increase in May and year to date sit the same percentage up for the year – all through occupancy with rates so far flat to last year. “The Upscale segment remains a concern with a year to date drop in RevPAR of 10% – coming split between rate and occupancy. These larger hotels have been hit by the drop in ‘blue-chip’ corporate business. It is clear that these hotels will be unable to return to growth until Western corporate business returns to the city,” he says.
Jenkins says that the Upper Midscale segment has seen a boost of occupancy year to date by 10% but a drop in ADR of 6% – coming mostly though the need to focus more on ‘cheaper’ business such as that from Asia.