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According to JLL experts, there are approximately 200 hotels in Moscow with almost 40,000 rooms. Of this, 66 hotels (17,500 rooms) are branded or 'of quality'. The pipeline is impressive with from 10,000 to 15,000 new rooms anticipated in next 5 years – mostly in economy and midscale segments. Moscow pipeline includes Four Seasons (180 keys), Marriott Novy Arbat (234 keys), Radisson Sheremetyevo (379 keys), Hampton Strogino (214 keys).
"International arrivals have grown from 3.5m in 2009 to 5.5m in 2013. Over 70% of guests in branded hotels are foreign, the average for the city is 35%." – David Jenkins, Head of JLL' Hotels & Hospitality, Russia & CIS, commented. – "70% of hotel demand is corporate, with little leisure. 2002 to 2008 saw average annual RevPAR growth of 13%. This led to a 35% drop in 2009. Occupancy has mostly recovered by ADR has not. Occupancies range from 65% to 75% with top ADR's around 17,000 RUB."
According to JLL, in H1 2014 quality Moscow hotel market saw 4% drop in occupancy (59%) and 1% drop in ADR (RUB 6,000).
David Jenkins said: "Moscow continues to be a strong hotel market in terms of RevPAR and GOP performance. Clearly the struggles in Ukraine and subsequent sanctions on Russia are having an impact on hotels in the city. Occupancies are down across most segments with the midscale benefitting. With little investment activity it continues to be a development market and a target for developers and operators. Most major brands are represented and Q3 should see the opening of the long-awaited Four Seasons. Another notable opening coming soon is the Marriott Novy Arbat – the first managed core Marriott in the city, the others being managed under franchise by Interstate. We expect 2014 to be a year of struggles given Ukraine and the general economic challenges in Russia."
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08 July 2014