Moscow Hotels become cheaper
The rapid growth of hotel space this year, obviously, made a disservice to the capital hoteliers. As reported by the Interfax agency, according to a study conducted by Blackwood, in 2009 Moscow hotels’ load significantly declined compared with last year to approximately 50%.
Most difficulties have befallen the hotels of middle and lower price segments. Their average load dropped by 33% and 30% respectively. Thus, according to statistics, Moscow lost in 2009 approximately 10% of tourists. Consequently, the majority of foreigners came to Russia preferred alternative resettlement to hotels, referring to stay in private apartments or with friends.
With regard to luxury hotels, then, according to the agency RBC Daily, they have lost only 11% of its customers. Low loss of expensive hotels is due, above all, to their willingness to make price concessions, arranging special promotions and discounts.
However, the planned commissioning of Radisson Royal Hotel on the former site of the Hotel “Ukraina”, Intercontinental Moscow Tverskaya on-site of the hotel “Minsk” will likely result in a further drop in average number of luxury hotels.
“With regard to the price situation in the Moscow hotel market, the overall market average price for a room (ADR) amounted to 4,050 rubles, that is lower than in 2008 to 15%. The maximum decrease was observed in the upper segment – 26% to 6,750 rubles. In the middle segment ADR decreased by 14.5% to 3,180 rubles, whereas in the lower price segment, ADR increased by 14% to 1,780 rubles”, – Interfax news agency quoted company Blackwood.
In 2009 a total hotel area of the city increased by a thousand numbers – 8 new hotels. Since 2005, the total number of areas increased by 5,000 numbers, reaching at the end of the year almost 7,000.
Also planned was growing average revenue per room in the capital's hotels. In comparison with 2000, in 2008, this amount was higher in two and a half times, amounting to 6,300 rubles. This growing was stopped by the financial crisis in 2009 and the entire hotel market in Moscow was in a recession. The growth area has slowed significantly, commissioning many objects delayed.
In the short term, predict experts of the company Blackwood, average load of hotels in Moscow will remain at 55% – 60%. Further decline of prices of rooms is not possible. However, the return of old growth and prosperity is not going to happen soon – perhaps this will happen in late 2011 – early 2012.