51,707 Real Estate News To Date

04-10-22 14:03 GMT
Get Free News Digest

Note: The information provided by you will not be sold, rent or otherwise disclosed to third parties.


St. Petersburg Hotel Market Update. Q3 2014 Results

November 12, 2014, 17:38 (PX Newswire)

St. Petersburg, 10 November, 2014 – JLL Hotels & Hospitality Group announces the Q3 2014 St. Petersburg hotel market results.

“The first 9 months in St. Petersburg have been very hard to predict this year. It was initially expected that St. Petersburg would see a deeper impact of the Crimean crisis and subsequent sanctions but in fact it has been Moscow that was hit hardest. For the period of January to August the city was down only 4% in RevPAR, compared to 10% down in Moscow.” - David Jenkins, Head of JLL Hotels & Hospitality Group, Russia & CIS, said.

The gap from last year to this year has though been widening month by month and for the summer period of June to August, St. Petersburg was down 10% - above the average for the year at that point (Moscow was 15% down in the summer).

“Had this trend continued we could have been pleasantly surprised and happy with just a minor 5-7% overall RevPAR drop in the city but September has seen a major drop to last year – and this is because in September 2013 the city hosted the G20 conference which boosted ADR dramatically across all hotel segments.” – David Jenkins commented. – “RevPAR in September 2013 was a significant 74% higher than September 2012. Clearly this throws off any comparison year to year as it was very much a one-off event.”

It all means that the influence of the record September last year has pushed RevPAR from only 4% down as of the end of August to 9.5% down as of the end of September (RUB 2,600). To try and place it in more perspective and to give a clearer picture of performance, had September 2013 been ‘usual’ then we would be only 4.5% down in RevPAR – which in fact is a more accurate ‘picture’ of the market but not the actual result.

Encouragingly, the city is far outperforming 2012 results; year to date RevPAR is 10.5% above the same period in 2012. We then do need to place the results into context given the very unusual September last year.

In terms of general hotels news, Rezidor launched the Park Inn Pulkovo with 210 rooms, bringing their number of hotels in St. Petersburg to six. October was the official opening of the ExpoForum in St. Petersburg, a world-class expo facility that can finally offer the city a quality incentive and expo venue – something that had been badly lacking before. Hilton will open two hotels at this facility – a Hilton and a Hampton (2015). This year also has seen the first Indigo (from IHG) in Russia opening in St. Petersburg (119 rooms).

St. Petersburg Hotel Market in details

The luxury segment is down 10% in occupancy and 10% in ADR so far this year, an overall RevPAR drop of 20%. According to David Jenkins, “two key factors contribute to this. Firstly it is the first full year of the Four Seasons so the segment is more competitive and secondly the G20 in September last year boosted RevPAR significantly for the luxury hotels – the typical ADR in September has been approx. RUB 9,000 yet in September 2013 it was RUB 20,000.”

Upper Upscale
It is a similar picture to the luxury hotels but not as dramatic as there has been no new competition within the segment so far. Overall it is down 6% in occupancy and 6% in ADR – a total drop of 12% RevPAR – again exacerbated by the G20 last year when ADR was RUB 11,500 against the usual September ADR of RUB 7,000.

The trend continues in the upscale segment but again the extent of the drop is far less, in fact there is only a 5% drop in RevPAR this year – again 50/50 between occupancy and rate. This is in fact the best performing segment in the city if we compare to previous year. They also had the best summer performance in the city – only 5% down against city average of 10%.

Upper Midscale
A 3% drop in occupancy and 4% drop in ADR puts the segment down by 7% year to date. The ADR drop was all caused by the G20 from last year, otherwise this segment had been performing very well indeed, with only 3% drop in occupancy and flat ADR.

“These hotels have on one hand seen a drop of 9% year to date occupancy but on the other hand have managed to grow ADR by 2%. The drop of 7% is again better than the city average and encouragingly there has been a slight ADR growth.” – David Jenkins commented.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under 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, 2007, 2008, 2009, 2010, 2011, 2012 , 2013 and 2014 at the Commercial Real Estate Awards, Moscow; Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg and The Best Real Estate Consultancy in Ukraine at the Ukrainian Property Awards in 2013.

For further information, visit www.jll.ru

Sign in

Subscribe now
Forgot your password?
Home | News | Newswire | Subscribe | About us | Terms & Conditions | Contact us | Sitemap | News archive | FAQ

Copyright © PropertyXpress 2006-2012