In H1 2017, international hotel operators completed 1,229 rooms in five new hotels, and there are currently about 50,000 rooms in Moscow's room supply. International hoteliers currently manage 33% of the capital's hotel complexes, which in absolute terms are 63 hotels. Major operators included AccorHotels, Mariott International, Carlson Rezidor Hotel Group, InterContinental Hotels Group, Hilton Worldwide, Azimut Hotels, and Best Western. These operators manage 16,371 rooms in hotels in Moscow.
The sharp increase in the number of rooms was partly due to the opening of some hotels being postponed from 2016 to 2017, because operators expect a large flow of tourists. Moscow is becoming more attractive to visitors from Asia – in H1 2017, the number of tourists from China increased by 37% year over year. In addition to the guests from China, Moscow will expect a large influx of football fans in the near future. The increasing capacity of Moscow airports in preparation for the forthcoming FIFA 2018 World Cup in Russia, among other things, will support further growth. Of course, Moscow hotels will be in demand among foreign tourists. According to Colliers, before the end of 2017, tourists from the Asian region will be a driver of an increasing the flow of foreign tourists as well as the continued growth of domestic tourism.
The average price of a room (ADR) in H1 2017 was 7,930 roubles per day, and the average yield per room (RevPAR) was 5,520 roubles per day. Among the different price ranges, the upmarket sector showed growth in terms of all indicators – in terms of occupancy, average price, and average profitability per room, which increased by 4.6%. There was a decrease in all indicators in the luxury sector: hotel occupancy decreased 2.1%, the average room price was down by 0.8%, and average profitability fell by 4%. Hotel guests are probably moving from the luxury sector to the upmarket sector, choosing quality rooms at affordable prices.
Veronika Lezhneva, director of the analytical department at Colliers International Russia
: “The current decline in luxury sector performance can be explained by its excessive growth a year earlier – in H1 2016, the price of accommodations increased by 24.2%, profitability by 14.6%, occupancy by 5%. Now the market is flattening due to the growth of other sectors. The strengthening of the rouble also provoked a decline in interest in expensive hotels in Moscow among foreigners, which had formed a significant part of the demand.”