According to Jones Lang La Salle Hotels & Hospitality Group, all segments in Moscow’s hotel market have caught up over the year to end mostly flat compared to 2012, with only the luxury segment showing any real growth at four percent. With the upcoming Winter Olympics, the market is expected to double in the next five years.
David Jenkins, head of Jones Lang LaSalle Hotels & Hospitality Group, Russia & CIS, says, “With several new hotels entering the branded segments, including Sheraton Sheremetyevo, Kempinski Nikolskaya, and Novotel Moscow City, we saw an increase in supply of seven percent and a similar increase of occupied rooms-bringing the market itself to a similar level to 2012-but given the increase in supply there was the same increase in demand.”
The first multi-branded hotel complex was opened in December in Moscow, but it has had no influence on the hotel market yet.
“Since 2008, the number of available rooms within the five branded segments has increased by 60 percent or almost 4,000 rooms, while the demand has increased by 50 percent. Essentially supply and demand are keeping pace with one another but at the expense of average rate (ADR)-which has dropped by 20 percent from 2008,” Jenkins adds.
To meet the demand of the upcoming Winter Olympics, major brands are working to open new hotels: In Moscow, new openings will include the St. Petersburg – Park Inn Pulkovo Airport; Hilton Hotel ExpoForum St. Petersburg; the Rostov-on-Don – Sheraton; and Hyatt Regency, among others.
