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News Release


Moscow hotel market remains 5% down on RevPAR for January-May 2015

​​​Moscow, 25 June, 2015David Jenkins, Head of JLL Hotels & Hospitality Group, comments on the January-May Moscow hotel market results:

“Following May’s results, Moscow remains 5% down on RevPAR for the year. It was a mixed bag of results across the segments.

Luxury hotels continue to do well, in May alone there was a RevPAR* increase of 20% over May last year (coming from an increase of 12% rate and 8% occupancy) to show that price rises are kicking in and still foreign travelers are seeing value in the segment. Year to date the luxury segment is up 12% in ADR to RUB 15,200 and flat on occupancy, which is still encouraging given that the Four Seasons was not open this time last year.

Upper Upscale hotels had a 6% RevPAR increase in May and year to date sit the same percentage up for the year – all through occupancy with rates so far flat to last year. Still, it is a positive trend to show an increase in occupancy for the year.

The Upscale segment remains a concern with a year to date drop in RevPAR of 10% - coming split between rate and occupancy. These larger hotels have been hit by the drop in ‘blue-chip’ corporate business. It is clear that these hotels will be unable to return to growth until Western corporate business returns to the city.

The Upper Midscale segment has seen a boost of occupancy year to date by 10% but a drop in ADR of 6% - coming mostly though the need to focus more on ‘cheaper’ business such as that from Asia.

The Midscale segment had a 10% growth in occupancy in May alone but at the same time a 15% drop in rate – again an indication that the ‘new demand’ is cheap demand. For the year, the segment is down 12% in RevPAR – so certainly the need to focus on occupancy and cheaper groups is evident but perhaps not if the net RevPAR result is negative.”

* Based on STR Global reporting

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. A Fortune 500 company 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 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.

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