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Vladivostok (Russia) Hotel Intelligence report

JLL Hotels & Hospitality Group presents Vladivostok (Russia) Hotel Intelligence report.

Vladivostok is the main trading gateway of Russia’s Far East and the industrial, economic, transportation, cultural and administrative centre of Primorsky Kray. Vladivostok is also the largest military installation in the Russian Far East. The city and region was boosted by infrastructural investments in the lead up to the APEC summit in 2012, with roads, bridges, new airport, Aeroexpress and the new University complex on Russkiy Island all coming as a consequence. These have been mostly political investments and the economy remains mostly as was prior to the summit.

According to JLL, there are 23 hotels (1,900 rooms) in Vladivostok (excludes 1,200 rooms in University). Occupancy in Vladivostok sits at 52%, ADR is at RUB 3,000.

“It is mostly a corporate market with limited summer tourism. Hotels report 65% to 75% of their business as coming from corporates, with the majority coming from within Russia, followed by China, South Korea and Japan. Winter sees a slowdown in demand due to harsh weather conditions”, David Jenkins, Head of JLL Hotels & Hospitality Group, noted. “The top end of the market is represented by the Hyundai Hotel. Rooms are often at a premium on key week days though the strong seasonality and lack of weekend business pushes hotel occupancies below 60% and in many cases below 45%.”

According to JLL, there are currently no global brands operating in the city. Azimut have two hotels with one closed for full refurbishment, and there were 2 Hyatt projects planned for the 2012 APEC summit that are still to open.

“Vladivostok has not been a priority development city for hoteliers due to the distance from Moscow,” David Jenkins commented. “With official events being pushed to the 1,200 rooms within the new University we see no real reason to expect any significant governmental or local corporate demand increase in the short term. We do though believe there will be increased project demand related to the gambling zone over the next 5 years. The opening of at least one Hyatt and of the newly refurbished Azimut will bring new supply to the market in time to capitalise on this expected growth in demand whilst the gambling zone is developed.”

Hotel Intelligence Vladivostok September 2014

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.