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News Release

Moscow

Moscow Hotel Market Update. June 2013 Records


Moscow, 30 June 2013 — Jones Lang LaSalle’ Hotels & Hospitality Group announces the H1 2013 Moscow hotel market results.

David Jenkins, Head of Jones Lang LaSalle’ Hotels & Hospitality Group, Russia & CIS, said: “A very strong June across most of the hotels in the city has helped the half year results slightly following a poor Q1. Still it is only the luxury segment that is performing better than the same time period of 2012. The trend though from May and June is a positive one that we hope can continue through the summer.”

June results in brief:
• Luxury hotels reached 77% occupancy;
• Upper Upscale is the only segment that saw a drop in June;
• Upscale segment saw the record results for the last 8 years:
• Upper Midscale is likely feeling the impact of the new Novotel Moscow City;
• Midscale saw the record 85% occupancy – the highest in the city.

Moscow Hotel Market in details

Luxury
A very strong June performance of 77% occupancy and ADR at over RUB 13,000 has boosted further the performance of the luxury segment for the first half of the year. RevPAR is sitting now at almost 4% above the same 6 month period in 2012 – a result of improved ADR and a slight drop in occupancy.

Moscow Luxury Segment Jan-June 2013 (year on year)

Moscow Luxury Segment Jan-June 2013_03072013.png
Source: STR Global, Jones Lang LaSalle

 

Upper Upscale
This was the only segment that saw a drop in June compared to the previous year which contributed to the almost 6% drop in RevPAR for H1 2013 against the same period in 2012.

Moscow Upper Upscale Segment Jan-June 2013 (year on year)

Moscow Upper Upscale Segment Jan-June 2013_30072013.png

Source: STR Global, Jones Lang LaSalle

 

Upscale
A June occupancy of 80% was the best for this segment since 2005, with an ADR almost at RUB 6,500 which was the best since 2009 for June, has helped the segment to regain some of the RevPAR year to date, said David Jenkins. “It is still down 2% on the same time period in 2012 but the trend seen in June, if carried through the summer, can bring the segment into positive in terms of performance to 2012,” – he noted.

Moscow Upscale Segment Jan-June 2013 (year on year)

Moscow Upscale Segment Jan-June 2013_30072013.png

Source: STR Global, Jones Lang LaSalle

 

Upper Midscale
With June performing just slightly better than 2012, the segment is still down 8% in RevPAR which is coming all from a drop in occupancy. This segment is likely feeling the impact of the new Novotel that opened in Moscow City.

Moscow Upper Midscale Segment Jan-June 2013 (year on year)

Moscow Upper Midscale Segment Jan-June 2013_30072013.png

Source: STR Global, Jones Lang LaSalle

 

Midscale
This segment is still performing flat to 2012 despite an excellent June when this cluster of hotels recorded 85% occupancy – the highest in the city.

Moscow Midscale Segment Jan-June 2013 (year on year)

Moscow Midscale Segment Jan-June 2013_30072013.png

Source: STR Global, Jones Lang LaSalle

 

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Aktau. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
For further information, please visit www.jll.ru

 

About Hotels & Hospitality Group
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centres; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totalling nearly US$25 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store