2,200 hotel rooms to open in Moscow

Decent market performance The hotel market in In 2015, the average hotel occupancy in Moscow grew by 2.7 percentage points y-o-y, reaching 67.5 pct, while in St Petersburg it grew by an impressive 7.3 percentage points, reaching a solid 64.3 pct for the year, according to JLL. At the same time, the revenue per available room (RevPAR) increased significantly in ruble terms on both markets, with St Petersburg breaking its RevPAR records with 26.3 pct growth, compared to 2014. Moscow recorded a more modest gain of 7 pct and had an average daily rate growth (ADR) in rubles of 2 pct, up to RUB 8,000, while ADR in St Petersburg grew by almost 9 pct – to RUB 6,200. The key drivers of the growth were the higher level segments: luxury, upper upscale and upscale. “The Russian hotel market in the last year saw a number of changes: a complete switch to ruble cash flows (both for income and expenses), a demand shift to high-