According to data compiled by STR Global, Moscow
and St. Petersburg have reported RevPAR declines for the first
eight months of 2009. The increasing supply within both cities
coupled with declining demand resulted in occupancy and ADR
Moscow reported occupancy rates of 56%, dropping
8.7 percentage points compared with year-to-date August 2008, its
lowest performance for any January-to-August period during the
past seven years.
Moscow’s ADR declined 42% to US$197, but
the market still reported a higher ADR than St. Petersburg‘s
St. Petersburg saw occupancy levels fall by
14.3 percentage points. In local currency, both cities fared
better with rates declining only 20% for Moscow and 12% for St. Petersburg.
“For the past few years, Moscow saw
supply limitations especially with the absence of Western-standard
hotels and this enabled the existing international brands to
charge premium rates,” said Jan Freitag, vice president, global
development STR. “The declining business demand due to the
worldwide economic downturn resulted in low occupancy levels and
rate pressures this year. The steady supply increase in St.
Petersburg has put additional pressure on local hoteliers to keep
their market share in this declining market. Our Hotel Market
Forecast Reports show Moscow ending 2009 with a RevPAR decline
between -26% and -28% in local currency and starting to see RevPAR
recovering in the second quarter of 2010.”
Jan Freitag will speak
on trends, pipelines and industry outlook at this year’s Russia & CIS
Hotel Investment Conference which
will take place in St. Petersburg 25 to 27 October 2009.
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