Dollar prices in Moscow hotels fell by 18%
National Travel Portal of Russia: Dollar prices in Moscow hotels fell by 18% in 2014
The average price per room (ADR) in Moscow hotels decreased by the end of 2014 in dollar terms compared to the end of 2013 by 18% to 154 dollars, in ruble terms – by 1.1% to 5.933 thousand rubles.
Moscow, Russia, January 30 – RIA Novosti reported. The average price per room (ADR) in hotels in Moscow decreased at the end of 2014 in dollar terms compared to the end of 2013 by 18% – to 154 dollars, in ruble terms – by 1.1%, to 5.933 thousand rubles, reported RIA Novosti in the press service of Cushman & Wakefield.
“According to the company’s data, 2014 demonstrated a drop in dollar prices for accommodation in hotels of all categories, with the most noticeable decline continuing to be demonstrated by hotels of the upper price segment,” the report of Cushman & Wakefield said.
As follows from the report of Cushman & Wakefield, for the reporting period ADR in dollar terms in hotels of the category above average (Upscale) decreased by 23% – to 150 dollars, and in hotels of the upper price segment (Upper Upscale) – by 21%, to 206 dollars, in ruble equivalent prices decreased by 7.5% (5,754 thousand rubles) and 4.5% (7,928 thousand rubles) respectively. Luxury hotels remain the least flexible to the pricing policy, here ADR in dollars decreased by 16% – to 295 dollars, while in ruble equivalent prices increased by 1.3% – to 11.339 thousand rubles.
In hotels of medium and economy category prices in dollar terms decreased by 16% – to 114 dollars, however, according to the company’s analysts, annual ADR ruble growth by 0.8% – to 4.388 thousand rubles demonstrates the preservation of stable demand for accommodation in hotels of this price segment.
The average occupancy rate of quality hotels in Moscow for 2014 decreased by 4.7 percentage points, amounting to 63.8%. Yield per room in dollar terms fell by more than 20% across all segments. In ruble terms, the yield per room in the Luxury segment decreased by 6% (RUB 6,265 thousand), Upper Upscale – by 9% (RUB 5,605 thousand), Upscale – by 14% (RUB 3,729 thousand), Midscale-Economy – by 5% (RUB 3,064 thousand). The average market rate of return per room fell by 8%, amounting to 3.786 thousand rubles per room, as indicated in the materials of Cushman & Wakefield.
According to the forecast of experts of the company Cushman & Wakefield, in 2015 is not expected further significant decline in demand for accommodation in quality hotels in Moscow, which at the end of 2014 amounted to about 5 percentage points. “Demand may consolidate at the level of 60-63% (at the end of 2014 – 63.8% on average in Moscow).
At the same time the price for hotel services in rubles will grow in 2015 on average not less than 5% relative to the level of 2014, which will be caused by the high inflation rate and the need to “win back” the unrealized price growth, which was restrained in 2014 to maintain demand”,
At the same time, the price for hotel services in rubles will grow in 2015 on average not less than 5% relative to the level of 2014, which will be caused by the high rate of inflation and the need to “win back” the unrealized price growth, which was restrained in 2014 to maintain demand,” – said in the report of Cushman & Wakefield.
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