There are officially 24 hotels in the city with 1,829 rooms. As well as the 2 branded hotels (Radisson Blu and ibis) there are some quality local hotels such as Heliopark Kaiserhof, Usadba and Triumph Palace.
Kaliningrad is a Russian enclave that borders both Poland and Lithuania. As the former Konigsberg it maintains close links to Germany in attracting groups of German tourists. It was one of the country’s first Special Economic Zones and attracted strong initial international investment from companies such as BMW. With under 500,000 inhabitants it remains small but vitally important.
“The city and region does have more tourism than most. The region sits on the Baltic Sea coast – with famous domestic resorts of Svetlogorsk, Yantarny and Zelenogradsk that remain popular (especially for the elderly and infants) in the summer as it is not as hot as the Black Sea. There were 165,000 registered hotel guests in the city in 2013, a minor 1% growth over 2012. The bulk of demand is corporate domestic (80%) and sensitive to rate”, says David Jenkins, Head of JLL Hotels & Hospitality Group, mentioned.
There are officially 24 hotels in the city with 1,829 rooms. As well as the 2 branded hotels (Radisson Blu and ibis) there are some quality local hotels such as Heliopark Kaiserhof, Usadba and Triumph Palace.
“Having a Radisson in the city centre with a limited demand has been hard for the city in terms of driving rates; ADR sits at RUB 3,000” David Jenkins commented. “With only minor demand growth each year the city hotels find it hard to beat 50% annual occupancy. The resort zones manage no more than 40%.”
“Despite having only two branded hotels, the presence of the Radisson – although excellent for the image of the city, has created strong pressure on rates. Kalinigrad remains still a candidate for host city for the World Cup but we do hope that this does not induce development fever as it would create a legacy of ever declining results for hotels. Intelligent hotel development is required in the city to match future demand growth, not to satisfy a one-off event,” David Jenkins said.
JLL Hotel Intelligence Kaliningrad November 2014
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