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News Release

St. Petersburg

H1 2014 St. Petersburg Hotel Market results

​​​​According to JLL experts, there are approximately 120 hotels in the city with almost 17,300 rooms. Of this, 30 hotels (8,500 rooms) are branded or ‘of quality’. The city also has over 500 mini hotels and hostels with average size of 15-25 rooms. First Four Seasons (185 keys) and Indigo (119 keys) hotels in Russia have been recently opened in St. Petersburg. Park Inn Pulkovo (200 keys) to be opened in August; St. Petersburg hotel market pipeline also includes Hilton ExpoForum (240 keys), Hampton ExpoForum (210 keys), Golden Tulip (220 keys), Aloft (200 keys).

“Tourist flow has grown from 3.5 million in 2005 up to 6 million in 2013.  Peak season is from May to September with extra boom in June, when the city celebrates the ‘White Nights’ festival. Hotel occupancies and rates surge in June. The St. Petersburg Economic Forum held in May also boosts performance. The city performs far below Moscow due to the strong reliance on summer leisure business. Occupancies peak at just above 50% for luxury and 70% for midscale, with annual ADR’s from RUB 11,000 in luxury segment down to RUB 2,500 for midscale.” - David Jenkins, Head of JLL’s Hotels & Hospitality, Russia  & CIS, said.

According to JLL, in H1 2014 quality St. Petersburg hotel market saw 30% growth in ADR (RUB 4,600) and 6% decrease in occupancy (49%).

“Moving the annual Economic Forum from June to May allowed hotels to over-perform that month which has boosted the year to date results significantly. RevPAR was two times higher in the luxury segment than the previous year. Still, it will be a challenging leisure period in July and August and the full year results will largely depend on this. Given the current political climate the hotels had been reporting lower than usual pick-up on summer bookings and it remains to be seen if the strong May will carry the rest of the year.” – David Jenkins commented.

“Russia’s cultural capital is a highly seasonal market that relies on a strong summer performance from group and individual leisure segments. It has a strong range of brands operating in the city such as W, Four Seasons, Belmond, Corinthia and Rocco Forte – a much broader range than in Moscow luxury segment. What holds the city back from high performance is the visa regime – it misses out on the European weekend break business and the global incentive business. This is the big hope for all city hoteliers – that the 2018 World Cup will stimulate the end of this restrictive system.” – David Jenkins added.

For more details see the report. ​