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Moscow
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Hotel Real Estate Market Newsletter. August 2009 |
 | 29 march 2010 Category: Forecasts |
 | 2009-12_hotels_market_newsletter_(eng).pdf (filesize 305.58 KB) |
Dynamics of tourist flows and hotel occupancy rates
Due to the impact from the international financial and economic crisis, a decrease in passenger traffic during 2009 was typical for virtually all regions of the world, including Russia. According to the Boundary Office of the Federal Security Service of Russia, 2.6 million foreign tourists visited Moscow during the first 9 months of 2009, which is 15% less than during the same period in 2008.
A reduction in demand predetermined the negative dynamics of key performance indicators for Moscow hotel complexes. In 2009 the average occupancy rate in Moscow in the segment of 5* hotels declined approximately 18% compared to 2008, and 8% in the 4* category. Yet the greatest decrease was recorded in the hotels of the 3* category at over 30%.
Average Room Rate (ARR)
The average room rate for 5* hotels in Moscow fell below $300, whereas a year ago it exceeded $460 – a decline of about 37%. Hotels in the 4* category reduced rates by more than 40% in dollar terms, while 3* hotels dropped them by 34%.
The figures reflecting the changes in Moscow hotel rates look less dramatic in Russia's national currency. In the 5* hotels the decrease equaled 18%, in 4* it equaled 24%, and in 3* it reached 14% in comparison with 2008. This is caused by a noticeable devaluation of the ruble against other major world currencies, which took place from autumn 2008 to spring 2009.
Average Revenue per Available Room (RevPAR)
The overall effect of occupancy rate reduction and average room rate decline resulted in a two-fold drop of hotel revenue in dollar terms (or in a decrease of 35% in Russian rubles).
Most hotel operators had to take additional measures to optimize costs and stimulate demand.
Hotels opened in Moscow in 2009
Since early 2009, 8 hotels were opened in Moscow in various categories with a total of 969 rooms and the first capsule hotel in Russia was commissioned in Sheremetyevo international airport.
