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St. Petersburg Hotel Market Update. H1 2013


Moscow, 1 August 2013 — Jones Lang LaSalle’ Hotels & Hospitality Group announces the H1 2013 St. Petersburg hotel market results.

The key month of June was positive for all hotels with occupancy and rate coming in higher than June 2012 over all segments. “A record June in terms of occupancy and average rate for the Luxury and Upper Upscale hotels in St. Petersburg cannot hide the fact that the overall trend in the city is down year on year for both segments. It is the Midscale hotels that are showing impressive growth in the first 6 months of 2013,” - reports David Jenkins, Head of Jones Lang LaSalle’ Hotels & Hospitality Group, Russia & CIS.

Results in brief:
• In June 2013 Luxury hotels reached an ADR over RUB 26,000;
• Upper Upscale saw occupancy of 77% in June;
• With ADR close to RUB 5,000 Upscale segment seems to be offering good value for corporate clients to drop down from segments above;
• RevPAR growth of 19.5% for H1 2013 in Upper Midscale;
• Midscale saw the ADR growth to RUB 2,800.

St. Petersburg Hotel Market in details

Luxury
Occupancy is down year to date by 8% with a similar increase coming in ADR, bringing a flat RevPAR to H1 2012. “June saw a strong growth in occupancy to over 74% and ADR to over RUB 26,000”, - David Jenkins says. – “It does though seem that rate increases are scaring off some clients in general. Half year occupancy for the segment is just above 40%.”

St. Petersburg Luxury Segment Jan-June 2013 (year on year)
St. Petersburg Luxury Segment Jan-June 2013_01082013.png
Source: STR Global, Jones Lang LaSalle
 
 
Upper Upscale
A 5% drop in occupancy is matched by a 5% increase in ADR, a similar trend to the luxury segment. “Clearly price increases have led to drops in occupancy in the upper tiers demonstrating high sensitivity to price increases in the city,” – David Jenkins notes. – “June saw occupancy of 77% for this segment and ADR at RUB 16,000, yet the year to date ADR sits at RUB 7,900.
 
St. Petersburg Upper Upscale Segment Jan-June 2013 (year on year)
St. Petersburg Upper Upscale Segment Jan-June 2013_01082013.png
Source: STR Global, Jones Lang LaSalle
 
 
Upscale
A growth of 4% in occupancy and the same in ADR has led to a solid 8% growth in RevPAR so far this year for this hotel cluster. With ADR close to RUB 5,000 for the year the segment seems to be offering good value for corporate clients to drop down from segments above.
 
St. Petersburg Upscale Segment Jan-June 2013 (year on year)
St. Petersburg Upscale Segment Jan-June 2013_01082013.png
Source: STR Global, Jones Lang LaSalle
 
 
Upper Midscale
There has been a significant jump in occupancy within this segment, from 56% year to date in 2012 up to 63% year to date in 2013. At the same time, ADR has grown almost 7% bringing an impressive RevPAR growth of 19.5% for H1 2013 over the same period in 2012. “We see most of the growth coming in this segment which offers strong brands for the corporate and leisure guest at competitive pricing, although the year to date ADR is just RUB 1,000 below the segment above,” – David Jenkins comments.
 
St. Petersburg Upper Midscale Segment Jan-June 2013 (year on year)
St. Petersburg Upper Midscale Segment Jan-June 2013_01082013.png
Source: STR Global, Jones Lang LaSalle
 
 
Midscale
The 12% growth in RevPAR is coming mostly from a boost to ADR of 10% over the same 6 months in 2012 – to RUB 2,800.
 
St. Petersburg Midscale Segment Jan-June 2013 (year on year)
St. Petersburg Midscale Segment Jan-June 2013_01082013.png
Source: STR Global, Jones Lang LaSalle
 
 
 
About Jones Lang LaSalle
Jones Lang LaSalle (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 revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 242 million square meters and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Aktau. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit www.jll.ru
 
 
About Hotels & Hospitality Group
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centres; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totalling nearly US$25 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store