Latest News
HomeRegional NewsEuropeMoscow hotel market remains 5% down on RevPAR for January-May 2015
Hospitality

Moscow hotel market remains 5% down on RevPAR for January-May 2015

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 travelers are seeing value in the segment.

MOSCOW – David Jenkins, Head of JLL Hotels & Hospitality Group, comments on the January-May Moscow hotel market results:

“Following May’s results, Moscow remains 5% down on RevPAR for the year. It was a mixed bag of results across the segments.

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 travelers 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.
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. Still, it is a positive trend to show an increase in occupancy for the 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.

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.

The Midscale segment had a 10% growth in occupancy in May alone but at the same time a 15% drop in rate – again an indication that the ‘new demand’ is cheap demand. For the year, the segment is down 12% in RevPAR – so certainly the need to focus on occupancy and cheaper groups is evident but perhaps not if the net RevPAR result is negative.”

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

28/03/2024
27/03/2024
26/03/2024
25/03/2024
22/03/2024
21/03/2024