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News Release

​Moscow

Sochi Mountain Cluster Hotel Market. Q1 2015 results


​Moscow, 05 May, 2015 David Jenkins, Head of JLL Hotels & Hospitality Group, comments on the Q1 2015 Sochi Mountain cluster hotel market results:

“The high winter season from January to March has now closed and we have hotel data in for the 2015 period compared to the 2014. For the ease of comparison we take a sample of Krasnaya Polyana hotels from the 3 ski resorts based on STR reporting – and we use hotels rather than apartment complexes.

The period of January to March in 2014 of course saw the Winter Olympics (build-up, the event and wind down) and the results showed that such an event can in fact inhibit occupancy and ADR. Hotels reached a quarterly total in 2014 of

• Occupancy 47%

• ADR 5,882 (rubles)

• RevPAR 2,776 (rubles)

The same period in 2015 was a purely commercial season, kicking off with the New Year holidays which saw January at 58% rather than the 38% reported in January 2014. 

Good snow conditions, increased prices to fly to the Alps, good weekend business, public holidays and events such as Man’s day, Valentine’s Day and Lady’s Day in February and March all helped the mountain cluster to reach a Q1 result in 2015 of;

• Occupancy 61%

• ADR 6,600 (rubles)

• RevPAR 4,019 (rubles)

This was an increase in occupancy of 29%, a 12% rise in average rate and overall an impressive RevPAR growth in one year of almost 45%.

It is important to keep it in perspective. It is still only 61% occupancy in what is the peak high 3 month season of the year. One perhaps could have expected this to be higher, especially given the ruble crisis and the increase of costs to fly to Europe to ski. It is perhaps a story of there being too many new hotels in the mountains – and the need to wait for several years for occupancy in peak season to reach 80% and above – levels seen in the Alps.

It is though a clear sign for those cities looking to try and boost hotel supply for the 2018 World Cup that they need to be careful and also a sign to those who seek to place price caps on hotels during events. It is in fact rare that hotel performance is as ‘improved’ by events as people expect.”


About JLL

JLL (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 fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316.0 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $55.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Russia and CIS JLL has offices in Moscow, St. Petersburg and Kiev. JLL, Russia & CIS was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014  and 2015 at the Commercial Real Estate Awards, Moscow; Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg; Consultant of the Year at the RCSC Awards in 2015, and The Best Real Estate Consultancy in Ukraine at the Ukrainian Property Awards in 2013.

For further information, visit www.jll.ru