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News Release

​St. Petersburg

New record levels of RevPAR in the upper segments in St. Petersburg, Russia


​​​​​St. Petersburg, 23 July, 2015 – JLL Hotels & Hospitality Group announces the H1 2015 St. Petersburg hotel market results*.

The St. Petersburg hotel market has continued the strong performance we saw in Q1, with the city hotels as a whole running at an impressive 18% higher in RevPAR than the first 6 months of last year. With only the midscale segment seeing a minor drop in RevPAR (down 1.5%) all other segments are performing remarkably well, especially the upper segments.

“The big story is the success of the upper segments, from upscale to luxury – showing incredible growth over last year and in fact showing the best 6-month result we have seen since we started collecting data.” - David Jenkins, Head of JLL Hotels & Hospitality Group, Russia & CIS, said. – “An astonishing ADR of almost RUB 35,000 in June for the luxury segment has it running at over 30% higher in RevPAR so far this year – 19% from occupancy and 11% from rate. It is a full 50% higher than the luxury segment RevPAR seen in 2012.” Both the upper upscale and upscale segments are also seeing similar growth rates.

It is important to note though that the Economic Forum drove the results for June to 80% higher in RevPAR than the year before. Also we started to see growth in the city from quarter 3 onwards last year so it is possible that the gap between the years will lessen as the second half of the year progresses. 

“Clearly there has been a major boost in domestic demand and we have seen foreign guests upgrading themselves as still the city is offering good value if you pay in Euro, USD or GBP. We are delighted to see the second capital performing so well, though it still important to place this in context. Whilst St. Petersburg is running at 57% occupancy for the year to date, other major European historical cities are still far higher – Prague at 68%, Budapest at 69%, Venice at 68%, Edinburgh at 85% and so on.” – David Jenkins noted. – “Still, the trend is excellent and encouraging. We hope that this new interest domestically will continue and remain as a strong base business for the city going forward.”


​St. Petersburg Hotel Market in details

Luxury

The luxury segment has seen a growth of 30% RevPAR in H1, coming from an increase of 11% ADR and 19% occupancy. The RevPAR in rubles is now the highest we have seen since taking records, sitting year to date at RUB 7,500. “In hard currency though it is still significantly down on previous years. This means the segment is still priced attractively for international guests (ADR of RUB 14,500) but on the verge of becoming too pricey locally.” – David Jenkins commented. – “51% year to date occupancy for the segment is encouragingly 19% above last year and 13% above 2012 levels.”

H1 2015 St. Petersburg Luxury Segment
H1 2015 St. Petersburg Luxury Segment_23072015.png

Source: STR Global, JLL

Upper Upscale

A 19% growth in RevPAR is coming almost all through occupancy (+16%) with the segment slipping to almost half the ADR of the luxury segment. With occupancy for the year almost at 60% there is still little evidence the hotels can push rate but the general trend here is also encouraging.

H1 2015 St. Petersburg Upper Upscale Segment
H1 2015 St. Petersburg Upper Upscale Segment_23072015.png

Source: STR Global, JLL

Upscale

This segment has seen a 28% growth in RevPAR in H1, coming exclusively from occupancy. “As far as rate is the same as last year, it is making such hotels highly attractive for international clients – and with the need to push occupancy it is hoped that this trend will continue. Occupancy is sitting at 66% year to date – a figure not seen previously. We believe that rate can only grow when Western European tourists return and when occupancy comes closer to 70% for the year – which seems possible.” – David Jenkins noted.

H1 2015 St. Petersburg Upscale Segment
H1 2015 St. Petersburg Upscale Segment_23072015.png

Source: STR Global, JLL

Upper Midscale

There are more modest results for this segment, it is far more reliant on price sensitive tourism and has been losing international clients to upper segments. The 6% RevPAR growth is 50/50 from occupancy and rate and at least is moving in a positive direction.

H1 2015 St. Petersburg Upper Midscale Segment
H1 2015 St. Petersburg Upper Midscale Segment_23072015.png 

Source: STR Global, JLL

Midscale

“The midscale hotels are neither growing nor slipping, running essentially flat to last year, albeit through a slight occupancy growth and rate drop. They are not seeing any growth in demand, highlighting for us that price sensitive domestic tourism is still not able to afford to come to the city – and that it is the higher segments that can attract local demand unaffected by crisis.” – David Jenkins concluded.

H1 2015 St. Petersburg Midscale Segment
H1 2015 St. Petersburg Midscale Segment_23072015.png 

Source: STR Global, JLL

*All statistics are sourced from STR Global with segments based on JLL configurations.


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.

For further information, visit www.jll.ru