Growth of hospitality businesses

The volume of the quality supply market in 2017 grew by a record 9.4% over the last 6 years (plus 1,661 numbers), while over the 10-year observation period (2007-2016), the average growth rate of quality supply was a record 8.5%.

"The main reason for this rise is the delayed completion of projects started before the 2014-2015 crisis," explains Irina Akutova, a leading consultant in the hospitality and tourism Department at Cushman & Wakefield. - A comparable "jump" in the increase in the volume of hotel rooms (21.2%) was observed in 2010, against the background of the gradual recovery of the market from the crisis of 2008-2009."

More than 80% of the new number of rooms, released in 2017 (1363 rooms), refers to the average price and economic segments of demand-a hotel "Hilton garden Inn Krasnoselskaya", "IBIS Oktyabrskoye Field", "IBIS budzhet Panfilovskaya", "Azimut Moscow Smolensk" and "holiday Inn Express Paveletskaya". Also at the end of 2017 was launched one new hotel in the high price segment (Upper-Upscale) - " Hyatt Regency Petrovsky Park "(298 rooms).

The shift in the distribution of high-quality room stock towards more budget accommodation options led to an interesting result in the final cost of the average Moscow accommodation-it decreased by 2.1% compared to 2016 (from 6,710 to 6,567 rubles per room), despite the fact that in the context of each individual segment, the prices for accommodation grew.

The average market load level for quality Moscow hotels in 2017 was 72.8% (+0.8 PP. by the results of 2016) - this is another record that the city's hotels have shown since 2006.

The rate of return on available number (RevPAR) at the end of the year came to the level of 4 779 rubles, which is 1% lower than the result of the previous year.

According to RevPAR, the most notable results continue to show "luxury" hotels (Luxury) - 6.1% growth, as well as hotels in the segment of prices "above average" (Upscale) and economical (Economy) – 3.9% increase in profitability. In the" high " price segment (Upper Upscale), the yield per room added 1.8% to last year, but in the middle-price segment, the yield of rooms decreased slightly – by 0.5%.

For the clientele of the middle-price segment of demand, price-sensitive, was painful increase in the price of accommodation by an average of 2.8% in rubles (up to about 4 800 rubles per room), and in conjunction with the strengthening of the ruble and at all by 17.8% (from 70 to 82 dollars per night). As a result

the average occupancy of hotels in this segment decreased by 2.5 PP. - up to 75.4% at the end of the year. Important here is a significant increase in supply in this segment (766 new rooms or 11% of the volume of the sub-market), despite the fact that the factors that stimulate a noticeable increase in tourist traffic, is not observed.

The Russian hotel market is stagnating, despite the growth of tourist traffic. The dynamics of growth in the number of rooms in the next five years will be reduced from 13% to 2%, such an assessment leads "Kommersant", referring to the study Cushman & Wakefield. At the same time, the most active investors are leaving the luxury segment: they revise the planned hotel rooms in favor of apartments, hoping to reduce the term of return on investments. The reason is the continued decline in the proportion of business travelers filling expensive rooms throughout the year. According to experts Cushman & Wakefield, if in the period from 2001 to 2019, the average annual growth rate of new hotel rooms averaged 13% annually (3.2 thousand), then from 2019 to 2024-will be reduced to an average of 2% annually (2.5 thousand). The market will reach a minimum in 2023, when, according to Cushman & Wakefield, 649 numbers will be put on the market, and the total Fund will grow by 0.8%. Consultants associate the negative trend with the General economic downturn, against which developers postpone the launch of projects or reformat them.

As reported by "Kommersant", the fall in the volume of input was noticed by other consultants. Tatiana Weller, head of the JLL hotel business Department, noted that this year there will be less than 4 thousand new branded rooms in Russian hotels, which is one third less than in 2018. However, according to the expert, this only signals a temporary cooling of investors to the segment, "while the market digests the additional numbers built for the world Cup."

At the same time, we recall, according to the border service of the FSB, the number of foreigners visiting Russia for tourist purposes, for the year increased by 24.97%, to 1.97 million people. In total, 15.1 million foreigners entered Russia in the first half of the year, which is only 0.78% more than last year. However, Cushman & Wakefield experts insist that tourists visit the country only in the summer months. The number of business tourists filling rooms in winter and in the off-season, according to Marina Usenko, on the contrary, decreases.