The requested news item does not exist. Please return to News
St. Petersburg, 27 April, 2017 – JLL presents the Q1 2017 results of the quality hotel market* in St. Petersburg.“First months of the year are traditionally quiet for St. Petersburg’s hotel market, and this year was no exception. For the fourth consecutive year, the occupancy of quality hotels in this period fluctuated between 38-39%; past quarter it was almost equal to previous year's level – 38.7%. hotels continued to increase the weighted market average rate– by 6% compared to the same period in 2016, up to RUB 3 600. As a result, the revenue per available room (RevPAR) grew by 4%, to RUB,1 600.” –
Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS, comments.
Q1 St. Petersburg quality hotel market results
Source: STR Global, JLL
The occupancy of hotels in both Luxury and Midscale segments fell to 38% in Q1; the first case, the drop was 3.4 ppt in comparison with the same period of previous year, in the second – only by 0.5 ppt. The most expensive segment of St. Petersburg hotel market strengthened its price position, gaining 7% in ADR (to RUB 11,500), and was thus able to slow down the RevPAR decrease – it fell by only 1.5%. The Midscale segment, due to a very marginal loss in occupancy and growth in rates for a second consecutive year (an increase of 3.5%, up to RUB 2,200), also managed to raise rooms revenues by 2%.“The reason for this dynamic in the most expensive and most affordable segments of quality market most likely lies in the nature of demand: both luxury and midscale segments are fueled by tourists. But while in the luxury it is mostly frequent individual travelers (FIT) with high disposable incomes, in the midscale it is Russian or Asian touristic groups; both are subject to fluctuations due to the ruble exchange rate dynamics and weather conditions.” –
Tatiana Veller comments. – “The remaining segments are primarily filled by business demand, thus are less volatile and have a different seasonality; as a result, these hotels continue to show growth in the three main operating indices – occupancy, ADR and RevPAR.”According to Tatiana Veller, the May holidays, followed by the traditionally high season of ‘White nights’ and major events – the St. Petersburg International Economic Forum and the Confederations Cup – are likely to help St. Petersburg hotel market to show excellent results in Q2 and recoup its small losses of the beginning of the year.
*All statistics on operational results are sourced from STR Global, except Upper Upscale price segment, which is temporarily excluded from the sample.
About JLLJLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and on behalf of its clients managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset 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, 2006-2017 at the Commercial Real Estate Awards, Moscow; Consultant of the Year at the Commercial Real Estate Awards 2009, 2016, St. Petersburg; Consultant of the Year at the RCSC Awards in 2015.
Head of Public Relations
+7 (495) 737 80 00