Moscow hotels closed 2011 at an 8% RevPAR increase over 2010 figures. This came from a 5% growth in occupancy and 3% in average rate. It was steady, if not spectacular, growth. Importantly it was the second straight year of growth and the similar trend is expected in 2012, with perhaps a slightly higher rate growth over occupancy.
The highest growth was recorded in the mid-scale, upper mid-scale and upscale segments (around 10% RevPAR for all) – again showing a preference for value for money on the market. The luxury segment grew by around 3% RevPAR – mainly in ADR and not in occupancy.
The distinctive trend of the Moscow hospitality market in 2011 became the difference in occupancy for the luxury and upper upscale segments as compared to the other more affordable segments. The upscale, upper mid-scale and mid-scale segments all registered an occupancy peak in the third quarter of 74%, 82% and 77% respectively. This was the highest quarter for occupancy, yet it was the summer season.
At the same time though ADR for the third quarter was by far the lowest in the year. This indicates that summer group leisure business is becoming an important part of the annual hotel occupancy for hotels out-with the luxury segment.
The boost to occupancy does come at a drop in rate but such groups will in turn spend money on other services such as breakfast and group meals so it is worthy business certainly.