Market overview 2nd Quarter 2017: Hotel Sector

The offer

  • By the end of the 1st half of 2017, the total number of rooms in the quality hotels in Saint-Petersburg reached the amount of 18.1 thousand rooms.
  • In march 2017 Hilton Saint-Petersburg ExpoForum with 169 room volume was commissioned.
  • By July 2017 2 hotels received commissioning permission: hotel Kostas (137 rooms) on Professr Ivashentsov street, 2 and hotel Lotte (154 rooms) on Antonenko lane, which had a testing run in July 2017.
  • Thus, by the end of the 1st half of 2017, 460 quality hotel rooms were commissioned at the market.
  • According to the results of the 1st half of 2017 the offer structure had not been changed significantly. The maximum share of the quality offers total capacity belongs to the 4* hotel segment – 52%; 17% and 31% belongs to 5* and 3* respectively.
    Perspective offer
    Since the end of 2016 there were no significant changes in the developers’ plans. According to preliminary terms, it is expected that in total, by the end of 2018, 1,7 – 1,8 rooms would be commissioned.
    Taking into account Confederation Cup period, we expect that most of the announced projects will be launched on time.

Perspective offer

  • Since the end of 2016 there were no significant changes in the developers’ plans. According to preliminary terms, it is expected that in total, by the end of 2018, 1,7 – 1,8 rooms would be commissioned.
  • Taking into account Confederation Cup period, we expect that most of the announced projects will be launched on time.

Dynamics of the new commissioned rooms

Offer structure according to the hotel class

Offer structure according to the hotel class

Key hotel projects, commissioned in the 1st half of 2017

Name

Category

Room capacity

Hilton ExpoForum

4****

169

Lotte Hotel Saint Petersburg

5*****

154

Kostas

4****

137


Demand

  • According to the results of the 1st half of 2017, tourist flow to Saint Petersburg remained on the same level as it was in 2016.
  • By the beginning of high season there was a decrease in the total guests' number. Nevertheless, Confederation Cup 2017, which attracted around 300 000 guests, slightly improved the situation.
  • By the end of 2017, the tourist flow is not expected to rise due to decreasing number of Russian tourists.

Occupancy rate

  • According to the results of the 1st half of 2017, the average occupancy rate in Saint-Petersburg was 72%. For comparison, in the similar period of 2016 it was 74%.
  • By the end of 2017 annual average occupancy rate is expected to be 67-79%, i.e. the same as last year. A serious peak will be observed in 2018 because of the Football World Cup.

Financial terms

  • From the beginning of 2017 ADR indicator (average daily rate per room) has increased on average by 8.5% and became accounted for 7 500 rubles.
  • For the 5* hotels the average rate in the 1st half of 2017 was 12 300 rubles, which is 8% higher than last year.
  • For the 4* hotels ADR indicator increased by 5% and reached the level of 7 300 rubles.
  • The smallest increase in the average rate was recorded in the segment of 3* hotels and accounted for 5%. By the moment of this research, the rate for this category is 3 900 rubles.

Dynamics of occupancy rate of St.Petersburg hotels

Room tariffs dynamics

Trends and forecasts

Despite of the Confederation Cup and SPIEF, the level of tourist flow to Saint-Petersburg by the end of the 1st half of 2017 remained on the same level. It can be primarily explained by the decreasing number of domestic tourists, who tend to prefer foreign destinations.
In 2017 the results of the hotel market main indicators are expected to be similar to the results in 2016. Qualitative growth of tourist flow and occupancy will be observed in 2018.

Owing to integration of a longstanding international experience, wide local partnership connections and cooperation with major international partners in Europe, we do not only set up-to-date trends and standards, but also offer to our clients beneficial solutions producing an unequalled effect and ensuring best results regardless of the task assigned to us – consulting and facility development or search for an optimum property option.

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