LONDON—Moscow and St. Petersburg, the two Russian cities tracked by STR Global, the leading provider of market data to the world’s hotel industry, reported revenue per available room (RevPAR) declines for the first eight months of 2009. The increasing supply within both cities coupled with declining demand resulted in occupancy and average daily rate declines.
Moscow reported 56 percent occupancy, 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 percent to US$197, but the market still reported a higher ADR than St. Petersburg‘s US$145 (-35 percent). St. Petersburg saw occupancy levels fall by 14.3 percentage points. In local currency, both cities fared better with rates declining only 20 percent for Moscow and 12 percent for St. Petersburg.
Year-to-date 2009 vs year-to-date 2008
|
City
|
Supply % change
|
Demand % change
|
RevPAR USD
|
RevPAR % change USD
|
RevPAR % change RUR
|
|
Moscow
|
1%
|
-12%
|
$110
|
-50%
|
-31%
|
|
St. Petersburg
|
6%
|
-21%
|
$60
|
-52%
|
-35%
|
Source: STR Global
“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 percent and -28 percent in local currency and starting to see RevPAR recovering in the second quarter of 2010”.
Jan Freitag, vice president, global development at STR, will speak on trends, pipelines and the outlook at this year’s Russia & CIS Hotel Investment Conference (www.russia-cisconference.com), which will take place in St. Petersburg 25 to 27 October 2009.
About STR & STR Global:
For more than 20 years, Smith Travel Research, Inc. (STR) has been the recognized leader for hotel industry benchmarking and research. STR and STR Global offer monthly, weekly and daily STAR benchmarking reports to more than 38,000 hotel clients, representing over 5 million rooms worldwide. STR is headquartered in Hendersonville, Tennessee, and STR Global is based in London. For more information, visit www.strglobal.com or www.HotelNewsNow.com.
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