Russian hotel market. How the development of the tourist complex has changed the hotel market in the capital Hotel market

Cushman & Wakefield Hospitality & Tourism estimates that the second half of 2016 will bring hotels back into the revenue growth zone.

Sentence

High-quality offer of hotels in Moscow in the II quarter. 2016 will remain at the level of 16 thousand numbers. ( Excluding hostels, mini-hotels, as well as near-airport hotels).

The closure at the beginning of 2016 of two large hotels (Iris Congress and Belgrade) for reconstruction at once brought 431 rooms out of the market. Considering that the former Iris Congress reopened in June as Holiday Inn Seligerskaya (although the number of rooms fully meeting the brand's standards is still limited to 30), the actual change in the quality hotel supply in the first half of the year was -1.4% compared to with results at the end of 2015

The room stock, realistically expected to open before the end of 2016 after the opening of the renovated Holiday Inn Seligerskaya, is estimated at 750 units (see the table with the announced projects), although the “net” increase in the quality room stock is much more modest - 470 units.

Provided the builders comply with the schedules for the completion of new projects, based on the results of 2016, high-quality hotel supply may increase by 2.9%, to approximately 16.8 thousand rooms of various categories.

New offer 2016

Midscale & Economy - mid-price and economy segment

Upscale - Above Average Price Segment

Upper-Upscale - high price segment

Luxury - luxury segment

The main increase in numbers - in the Economy segment

The growth in the supply of economy-standard rooms in 2016 will be 25 percent.

With the real growth of quality supply by only 470 rooms, which is 3.4 pp. lower than the rather modest growth results of the previous period, the main growth in 2016 occurs in the Economy segment, which in mid-2016 constituted 9% of the market (1.488 rooms). By the end of the year, taking into account the opening of Ibis Kievskaya (350 rooms), its share in the market structure will grow to only 10%, but the increase in the number of rooms will be as much as 25%.

Despite the planned opening of Novotel Kievskaya (250 rooms) and Adagio Kievskaya (150 rooms), the share of the Midscale segment will practically not change due to the fact that due to the temporary closure of 270 rooms in the former Belgrade hotel, the net increase in supply of this category will be only 2 % of the room stock.

In the absence of new finished projects standards Luxury, Upper-Upscale and Upscale, their proportional shares in the market structure, if they are reduced, then insignificantly.

The structure of the hotel offer, II quarter 2016 Nov.

Demand

The recovery of the average room price is becoming a trend

The timid sprouts of optimism noted in the 1st quarter. of the year in the luxury price segment, by the middle of the year spread to more democratic hotels, which resulted in the market average growth of ADR by 8.6% compared to the same period in 2015 - up to 6.628 rubles / room.

At the same time, the main drivers of growth remain the hotels of the Luxury segment, where prices increased by an average of 13.5% to RUB 14,016 / room.

In the Upper-Upscale and Upscale segments, ADR growth was more modest - by 5.9% and 3.6%, respectively. In the Midscale category, there has been no growth at all (less than 1%), while in Economy hotels there has been a further decrease in prices - on average, by 6%.

Is there a recovery in demand?

Recovery in demand for hotel services observed in Moscow hotels with practically no change in the growth vector over the past 12 months, with an obvious acceleration of rates, starting from the beginning of the IIQ. year, allowed the market, based on the results of the first half of the year, to increase the level of utilization by an average of 3.4 pp. (5.5%) compared to the previous period.

Not all price segments have benefited equally from the increased number of overnight stays sold. The largest growth (7.2 pp and 5.9 pp) was recorded in hotels of the Upscale and Midscale categories, respectively. Economy-standard hotels, on the other hand, are temporarily losers - with a 1.7 percentage point loss in occupancy.

In percentage terms, however, demand growth is most pronounced in the Upscale and Luxury segments - 11.9% and 9.9%, respectively.

The rise in hotel profitability gives hoteliers a reason for optimism

The recovery in demand, seen by Moscow hotels in virtually all price categories since spring, has allowed them to convert the unidirectional growth in the number of overnight stays and in the cost of accommodation into an increase in profitability per room.

According to the results of the first half of 2016, the average level of profitability per available number was RUB 4.319, which is almost 15% higher than the result of the same period in 2015.

The most impressive results were demonstrated by hotels of the Luxury standard (24.7%), as well as Upscale (15.9%). increase the load.

The Economy segment, in which the share of the old "post-Soviet" room stock is still significant, continues to show negative results (-8.4% compared to the previous period), which is most likely caused by an attempt by hotels in this price category to stop the churn of customers by reducing prices for accommodation.

Trends

High hopes for 2016 results

A confident recovery in demand, marked by Moscow hotels from the end of the 1st quarter. 2016, allows Moscow hoteliers not only to actively increase flexible rates (including rates in online sales systems, which today provide an impressive share of rooms sold), but also gives rise to optimism regarding the results of the year, since the second half of the year is traditionally more productive in terms of hotel revenues.

As a result, with some possible increase in loading on the market as a whole, the main driver of growth is expected to be the ADR indicator (8-10% in annual terms), which will overtake the average annual inflation rate predicted by the Central Bank of the Russian Federation (5-5.5%) and will return hotels to the revenue growth zone.

The main question is whether these positive results and the high rate of tariff recovery can be converted into revenue growth that exceeds the rate of inflation in 2017.

Moscow, possessing a unique cultural and historical heritage and playing an important role in political and economic life modern Russia, has every reason to claim the position of the largest center of business and cultural tourism not only on a nationwide scale, but also to successfully compete in the world tourism market with other capitals of Western European states.

Today Moscow attracts two main categories of clients, which are of great importance for hotel enterprises: businessmen arriving for business purposes, and tourists - with cultural and educational interests. Tourists who come to Moscow for cultural and educational purposes are not yet so numerous as to noticeably increase the workload of hotel enterprises. Other segments of the tourism market, such as event tourism, pilgrims, students and teachers, people who come for medical treatment, etc., allow the existence of hotels that have found their market niche in serving such marginal categories.

Thus, the majority of Moscow hotels compete in the segment of the business tourism market for foreigners and Russian citizens sent to Moscow or arriving for business reasons.

Visitor flows foreign citizens to Moscow are tied to specific locations generating this demand. These are the so-called tourist attractions, in the role of which are places of concentration business activity, architectural monuments, theaters, places of entertainment, etc. In Moscow, the city center is the most attractive for visitors. That is why central hotels have better occupancy rates and can charge higher prices for their services. They make up the highest segment of the market.

Middle market segment represented by secular hotels of the highest ranks and rather ambiguous in terms of service and equipment.

Lower market segment represented by 2 * and 1 * hotels. These are mainly Soviet-built hotels of the first category, multi-hull and high-rise, located on the outskirts of Moscow, as well as hostels converted to hotels.

Non-categorized hotels also belong to the lower segment of the market. This group is represented by objects where in recent years there have been no measures to improve living conditions. Hotels included in this group are the focus of private investors.

Russian citizens are especially in demand for hotels of the 2-star class category, which accounted for 59% of accommodations. 16% of Russians stayed in 3-star hotels, 15% in 4-star hotels and 1 in 5-star hotels, respectively. 0% Russian citizens.

However, it should be noted that Moscow, as a tourist destination, is currently losing the competition with other capitals of the world. The volume of services in Moscow reaches about 1 million foreign tourists annually, while for Paris this figure is 25 million tourists, and for London - 18 million.

It is necessary to improve the tourist infrastructure and material and technical base for the main components of tourist services: transport accessibility, accommodation facilities, enterprises Catering, sightseeing buses; the level and variety of tourist services: the creation of new tourist routes, the development of congress and exhibition activities, the holding of mass cultural and sports events (festivals, Olympiads, anniversary dates); improving the safety of tourists; improving the regulatory framework; improving tourist information services; improving the system of promoting tourism products to the world market; improving the training of professional personnel for the tourism industry.

With the closure of the Rossiya Hotel, there are no more affordable and popular hotels in the center of the capital. Moscow barely serves 900 thousand tourists and it is still unrealistic to talk about the expected 5 million tourists in the next few years.

Foreign guests arriving in Moscow rightly complain about the hotel's high prices. If earlier they could stay at the Rossiya Hotel and for affordable price admire the towers of the Kremlin, now they live in Izmailovo, where they offer far from the best service for the "Russian" price.

In Europe and North America for people with an average income, there is a well-developed network of motels and hostels. There, for 20-25 euros, they will provide both a room and breakfast. Having a berth for such an amount, you can safely go on a trip to Paris. In Moscow, the price per day will cost more than 100 euros.

The lack of cheap hotels in Moscow is dictated by the development of the market. According to experts, the main reason for the shortage in the hotel services market in Moscow is that builders and investors, who are focused on getting big profits quickly, are reluctant to start building cheap hotels. The segment of 3 * hotels develops later, when the category of 4-5 stars hotels is filled. On the other hand, middle class hotels begin to generate income only 5-7 years after their construction.

In September 2008 at Russian market commercial real estate began to show the effects of the global liquidity crisis. In recent years, the capital hotel market developed at a rather slow pace and was the weakest segment in the commercial real estate market. Under the influence of the crisis, the growth dynamics slowed down even more, new properties began to appear on the market even less often. At the same time, most likely, under the current conditions, only high-class hotel projects will be attractive to investors. As a result, the increase in the total room stock in the coming years will continue to occur mainly due to the hotels of the upper segment.

In the third quarter of 2008, the demand for hotel rooms in the Moscow hotel market fell. The occupancy rate of Moscow hotels did not exceed 50-55%.

The low level of occupancy in the capital's hotels is associated with a decrease in the flow of foreign tourists since the beginning of 2008 by 10-15%, which, in turn, is due to the high cost of living in middle and economy class hotels with a low level of service and quality of service.

As a result of the impact of financial and economic crisis the flow of business tourists, which constituted the main share in the structure of tourist flows, is decreasing - about 40% of the total inbound flow.

Events that take place on the world financial markets in 2009 will undoubtedly affect the capital's commercial real estate market, including the hotel segment. Many companies "freeze" or sell their projects, which include hotel space. In this regard, one should expect that the opening dates of many hotels may be postponed, which will affect the growth rate of the capital's room stock. As a result, the development of the Moscow hotel market, which did not show high dynamics in favorable economic conditions, will become even more complicated in the current situation. Thus, due to the low rates of construction and commissioning of new hotel space in the coming years, the shortage of hotel rooms will remain, first of all, in the middle segment, which has become even less attractive for investors and developers during the crisis.

Despite a 14% decrease in the cost of a hotel room over the past year, the Russian capital still tops the list of cities with the most expensive hotels for businessmen.

According to the Hogg Robinson Group's (HRG) Hotel Market Survey for the First Six Months of 2009, the average room rate in Moscow is £ 268.11. Art. per night, and Moscow ranks first in terms of cost. In second place is Abu Dhabi - 253.36 pounds, in Paris it is worth 203.46 pounds, in New York - 200.21 and in Milan - 191.28. London did not make it into the top ten cities with the most expensive hotels, dropping from 16th to 23rd with a price of 154.2 lbs. Art.

HRG experts note that the most (7.7%) rise in prices for rooms in 5-star hotels, which is associated with artificially inflated prices by hoteliers who are struggling with low occupancy rates. However, today business travelers choose more democratic hotels of the 3-4 stars category.

In 2009, hotel occupancy actually decreased by 20-30%, which forced some hotels to reduce prices. For instance, " best price»Currently in the Ritz Carlton it can reach 6000-7000 rubles. per room per day, and at the Holiday Inn - 3000-4000 rubles. True, these prices are not publicly published 1.

According to the consulting company Blackwood, in the first half of 2009 the demand for services in Moscow hotels decreased by one and a half to two times, occupancy fell on average from 75 to 40-45%. The revenue per room ratio (i.e. the ratio of revenue from all rooms to the number of rooms, RevPar) decreased by 35-50% (depending on the hotel class).

At present, the level of hotel occupancy continues to decrease to 50-55%. Before the crisis, this figure was 75-80%. Experts expect a significant increase in workload associated with an increase in business activity only by the end of the third quarter of 2009.

To retain customers and attract new ones, hoteliers are ready to freeze and even reduce - up to 50% - room prices, despite rising costs. Also, in the struggle for customers, operators offer an increased agency commission.

Table 1.4. Price range for accommodation in Moscow hotels in the first half of 2009 (hotel price / Rack Rate)

According to Blackwood analysts, over the past years Moscow has been among the leaders in terms of growth and absolute value of RevPar. However, under the influence of the crisis, the level of income per room in hotels in the capital began to fall at a record pace. Today, among European cities, Moscow, like Russia as a whole, takes one of the last places in terms of RevPar growth. According to the company's experts, the decrease in RevPar is caused by both a fall in ADR (average room rate) and a decrease in hotel occupancy. Nevertheless, despite the decrease in the indicator by more than 40%, in terms of its absolute value, Moscow continues to hold its position.

In the near future, a significant increase in the volume of supply in the hotel market of the capital, which may entail a decrease in prices, is unlikely, analysts say. The situation with the pace of construction of new hotel facilities, which from year to year lag behind the planned ones, is currently exacerbated by the crisis. The commissioning dates for many landmark projects, previously announced for opening in 2009, have been postponed (Moscow Hotel, Lotte Hotel, Rossiya Hotel), the implementation of some other projects has been stopped (IKEA hotel projects, hotel"Kremlin"), according to a review prepared by Blackwood.

The Moscow authorities, worried about the lack of tenants, intend to offer small hotels in the premises in the center of the capital, provided for offices. As explained by the prefect of the Central Administrative District of the city A. Alexandrov, back in the middle of last year, the city authorities decided to ban the construction of offices in the center.

During the second quarter of 2009, the Moscow hotel market was replenished with two objects:

Thus, according to the results of the second quarter of 2009, the hotel stock of the capital increased by 235 rooms. Taking into account the addition of 248 rooms in the first quarter, the total increase in the first half of the year amounted to 483 rooms.

According to the results of the first half of 2009, there are 231 hotels in Moscow with a total room stock of more than 36.6 thousand rooms, of which:

  • - luxury class (5 stars) - 2902;
  • - business class (4 stars) - 6718;
  • - middle class (3 stars) - 15,711;
  • - economy class - 9466;
  • - mini-hotels (less than 50 rooms) - 1880.

Rice. 1.3. Specific gravity hotels of various class categories Source: Becar Realty Group.

The main share in the structure of the number of rooms is occupied by hotels of the category "3 stars" (43%), but it is the middle class hotels that are most in demand, especially among tourists visiting Moscow for sightseeing and educational purposes.

Most of Moscow's hotels are concentrated in the Central and North-Eastern districts. Together, these districts account for 50% of the capital's hotel stock. All 5-star hotels are located in the city center, as are most of the 4-star hotels and mini-hotels.

Despite the fact that hotels are gradually appearing outside the city center, most likely, the structure of the market by territorial distribution will not undergo major changes in the coming years.


Rice. 1.4. Location of Moscow hotels by administrative districts Source: Becar Realty Group.

By the end of 2009, it was planned to commission 17 hotels with a total stock of more than 3.8 thousand rooms (Table 1.5).

Among the hotels, which were supposed to open in 2009, mainly new construction projects of the highest price segment ("4-5 stars") prevail.

Against the backdrop of the economic downturn, the real volume of commissioned hotel space is most likely to be significantly less than announced.

Table 1.5. The most significant hotels scheduled to open in 2009

Name

Numbered

Hotel "Ukraine" (after reconstruction)

Kutuzovsky prospect 2/1

Four Season Moscow (Hotel "Moscow")

st. Okhotny Ryad. 2

Hotel as part of the hotel and office complex (Imperia Tower)

Krasnopresnenskaya emb., Section 4 (MIBC "Moscow City")

Grang Hyatt Residences & Spa (Tower "West" of the "Federation" complex)

Krasnopresnenskaya emb. Section No. 13 (MIBC "Moscow-City")

st. Ilyinka. 4 (Gostiny Dvor)

The Mandarin Residences (2nd stage)

st. Olkhovskaya. 23

Prospect Mira. ow. 14. p. 3

Marriott Courtyard (Office and hotel complex Vivaldi Plaza)

st. Kozhevnicheskaya, ow. 8/4

A hotel within the MFC? Rechnoy "

st. Kuryanova, ow. 49-55

Renaissance Moscow Monarch Center

Leningradsky prospect, ow. 31. p. 2, 3

Atrium (small long stay hotel)

B. Spasskaya, 1/9, bldg. 1

Hotel

Vnukovo airport

Hotel as part of Avrora Business Park (3rd stage)

st. Sadovnicheskaya. 80

Administrative and hotel complex SR-Royal

Dmitrovskoe sh., 163a

Ibis Moscow Paveletskaya

intersection of Dubninskaya and Shchipok streets

Maxima Panorama Hotel

m. Avtozavodskaya

Aquamarine (GOK as part of MFC "Aquamarine-2")

Ozerkovskaya emb. 26

Source: Becar Realty Group.

Every year more and more hotels appear in Moscow, which are managed by professional hotel operators. Almost any hotel project in the highest segment ("4-5 stars") involves attracting management company, however, at present, this is more true for international operators, and not for Russian ones.

Among the events that took place during the study period in the hotel management segment, it is worth noting the signing of an agreement by the city authorities with the international hotel company Starwood Hotels & Resorts, according to which the National Hotel will change its management chain. Since 2001, the hotel has been operated by Le Meridien, which will be replaced by The Luxury Collection, also owned by Starwood Hotels & Resorts. Agreement on the transfer of the hotel under the brand The Luxury Collection.

The most significant projects of international management companies that are planned to be implemented in Moscow, see table. 1.6.

Table 1.6. Hotels commissioned in Moscow by international management companies

Operator

Projects in Moscow

discoveries

Hotel - Gostiny Dvor Novotel - 4 *

Hotel Sofitel 5 * as part of the transport terminal of MIBC "Moscow-City"

Four Season Hotels & Resorts

Hotel "Moscow-

Apart-hotel as part of the multifunctional complex on Sofiyskaya emb.

Grand Hyatt Moscow 5 * (Federation Tower)

It is planned to build a hotel under the Andaz brand

InterContinental Hotels Group

Moscow Tverskaya5 * (Hotel "Minsk")

Hotel in Moscow (reconstruction object)

Operator

Projects in Moscow

discoveries

Hotel within the MFC "Poseidon Park" ("Oceanarium")
  • 2010-

Holiday Inn Ryazansky 4 *

Holiday Inn Volokolamskoe 4 *

Club hotel (part of WTC-2) 4 *

Hotel within the MFC "Aquamarine-2"

Kempinski Hotels & Resorts

Kempinski Hotel Nikolskaya 5 *

Hotel 5 * as part of Crocus City **

Kempinski Berezki Moscow "5 *

Mandarin Oriental Hotel Group

Hotel Mandarin Oriental Moscow 5 * (on the site of the hotel "Central")

Hotel as part of the MFC "Metropolie-2"

Hotel "Bela" - reconstruction

Office and hotel complex Vivaldi Plaza 4 *

Rezidor SAS Hospitality

Radisson SAS Hotel Belorusskaya 4 *

Radisson SAS Olumpiysky 4 *

Radisson SAS Moscow Riverside Hotel & Resort 4 *

Hotel and business center "Business Plaza"

Hotel 3 * on the site of the old Panavto car dealership

Scandic Khimki 4 * (as part of the BC Khimki)

Fairmont Raffles Hotels International

Raffles Moscow 5 * as part of the MFC "Chizhevskoe Podvorie"

During the study period, the following hotel properties, intended for sale, entered the market (Table 1.7).

The hotel real estate market was characterized by the following trends:

1. Due to the drop in demand, hotels in the capital decided to reduce tariffs and renegotiate agreements with tour operators.

Hotels began to monitor all their sales more closely, lowering prices for certain groups of customers, introducing various discounts, Special offers and promotions. The result of the mobile pricing policy is an increase in the competitiveness of Moscow hotels in terms of price-quality ratio.

  • 2. There is a high level of interest in the industry from the state:
    • - new solutions are being initiated to expand the hotel stock, including through the use of space in shopping and sports complexes;
    • - the Moscow authorities are putting up their own properties for sale;
    • - OJSC "Hotel Company" is created as a joint venture with external investors in order to develop the accommodation system.
  • 3. The postponement of the commissioning of facilities continues (for example, the project for the construction of a hotel on Ilyinka street,

Over the past nine years, the tourism sector in Moscow has received a powerful impetus for development and has changed a lot. The number of tourists staying in hotels in the past 3 years has grown by 80%, and the income of the hotel industry has grown by 122% in the last three years.

One of the main elements of tourism development is the hotel industry, which currently numbers 1.7 thousand hotels and similar accommodation facilities. The average annual occupancy of the capital's accommodation facilities is 77%, which is comparable to the figures for Amsterdam, London and Paris.

Today Moscow already offers a full range of services that make the stay of tourists in the city as comfortable as possible. This is the transport infrastructure, the level of service and the urban environment in general. Improvement of streets and parks, festivals and celebrations, improvement of transport and increased safety - all this is done not only for Muscovites, this infrastructure is also important and significant for tourists.

It is worth noting the influence of the festival and event program in Moscow on the hotel industry in Moscow. Over the past 2 years, the pronounced seasonality has practically disappeared, which allows hotels to operate with high occupancy and profitability all year round.

The event agenda of Moscow has become a driver for the growth of the tourist flow and the development of the hotel industry. Thus, during the celebration of Moscow City Day 2019 (September 7-8), hotel occupancy was more than 90%, of which 65% are foreign tourists. China, Spain, USA, Israel and Argentina became the leaders among the non-CIS countries in terms of the number of hotel guests. And the festive venues themselves were visited by 7.9 million people.

According to the Moscow Tourism Committee, today there are 1,718 hotels, hostels, furnished rooms in the capital, which have passed the qualification procedure and received the appropriate category. Five stars were awarded to 41 establishments, four stars - 132, three stars - 331, two stars - 152, one star - 86, 976 establishments - no stars.

The share of rooms in three-star hotels is 44.4%, four-star - 17.8%. As for the global situation, the share of three-star hotels is on average 27%, four-star hotels - about 50%. This means that Moscow hotels are, on average, more affordable and democratic.

377 hotels in the capital have more than 50 rooms, 609 hotels and mini-hotels have less than 50 rooms. The rest are 713 hostels and 19 furnished rooms.

The total number of rooms in Moscow hotels is 82.9 thousand rooms. This is almost twice as much compared to 2010.

44 hotels with a total stock of more than 13 thousand rooms operate under well-known international brands: Four Seasons, Hilton Hotels & Resorts, Holiday Inn, InterContinental, Kempinski Hotels & Resorts, Marriott Hotels & Resorts, Ritz Carlton, Swissotel, Pentahotel and others.

Until 2010, the majority of Moscow hotels were one- to three-star accommodations. There were few hotels in the capital's market that corresponded to the category of four or five stars. Over the past 10 years, the number of beds in European-level hotels has increased several times. Their share in the room stock of all collective accommodation facilities in Moscow by the end of 2018 exceeded 34%, which is comparable to the average European indicators of the provision of tourists with quality hotels.

Until 2010, it was almost impossible to say how many hotels were operating in Moscow, since hotel activities were never licensed. Today, thanks to the preparation of the city for the 2018 FIFA World Cup, all hotels in Moscow were taken into account, passed the mandatory state classification and are divided into six categories: "no stars", "one star", "two stars", "three stars", "four stars", "five stars".

“The most important achievements of the metropolitan hospitality industry for the period 2011 - 2019 are reaching the level of average annual occupancy, comparable to the hotels of the leading European capitals in the field of tourism. And, more importantly, during this period, Moscow was the first of the large Russian cities to significantly reduce seasonal fluctuations in the occupancy of the room stock, primarily due to the development of cultural and educational tourism, the event series of the capital, and simply because the city itself has become prettier, there are more tourists. attractive, ”the president notes.

Until 2010, there were not so many hotels in Moscow with restaurants, not to mention other venues adapted for organizing leisure or business. There were practically no hotels with a spa area. Today almost all four-star and five-star hotels, of which there are 173 units in Moscow, have modern conference areas, a bar or a restaurant. Five-star hotels have a spa area and a swimming pool. Proceeds from provision additional services c accounts for up to 40% of the hotel's total revenue.

Hotel occupancy has grown noticeably. For example, until 2010 the hotel complex "Cosmos" was loaded from the force by 25-30%, the hotel "Ukraine" from 20 to 40%. Today, the Cosmos hotel complex and the Radisson Collection Hotel Moscow (formerly the Ukraine Hotel) are filled up to 75-80% regardless of the season.

By data by Cushman & Wakefield, over 10 years nominal growth of the Moscow hotel room market modern quality by 2018 amounted to 202%. During this period, the market grew at an average rate of 8.1% per year, with "peaks" of activity in 2010, 2011 and 2017, when the volume of quality supply increased by 21.2%, 10.1% and 9.4%. respectively.

Target audience changes

A number of changes in the industry have spurred the preferences of a new class of millennial travelers. Moscow also keeps up with world trends in the hospitality industry.

Hotels are forced to adapt to the new generation target audience... Mega-hotel chains are now revising their development strategies. According to research Landor Associates, they are no longer considered the most innovative. The most far-sighted players expand their portfolios, make new subbrands.

All global and Moscow trends in the hotel industry are associated with an increase in the number of millennial travelers - people born between 1980 and 2000. Millennials grew up in the formative era digital technologies... To better understand the trends in the Moscow hotel business, you first need to understand the values ​​of millennials - the target audience in the hotel services market.

According to general director AZIMUT Hotel Smolenskaya Moscow Mikhail Gitman, in recent years, the share of the younger generation has been steadily growing and this has an impact on the hotel industry. Now it is important not only to provide the guest with a cozy quiet room, tasty food and impeccable service, but also to give the opportunity to get vivid impressions and emotions. This can be expressed in the unusual design of the hotel, the original restaurant or some other moments about which guests will be happy to tell their friends and acquaintances, primarily through social networks.

“If the hotel is organically integrated into the urban environment, has partnerships with museums, exhibition complexes, observation decks, everything that helps guests diversify their leisure time and learn something new, then this is a big plus for the hotel. Those who successfully cope with the task of giving impressions to their guests have a certain competitive advantage and shows results above the market average, ”says Mikhail Gitman.

Millennials are people with an unconventional and flexible mind, living in a frantic rhythm and not representing any other way of life. For millennials, material status is already less important - representatives of this generation sometimes want to have exactly as much money as will be enough to satisfy their interests. That is why they are not inclined to savings, they do not want to buy expensive cars, their own apartments and houses, expensive jewelry and branded clothes, but they know where to rent all this. They spend money on new gadgets, educational courses and travel.

So modern hotels strive to create a very personal brand loyalty - this is the number one trend. There is "more air" between them and their guests, and loyalty programs have changed significantly. Paying millennials dictate the rules of the market. Modern guests of the capital would rather prefer free bicycles for rent to the in-room bar. They are less interested in their pleasure, for example, they are more concerned with carbon dioxide emissions and how to reduce the carbon footprint they leave in the city of residence.

Trend number two relates to design - authenticity and variety. Since 2010, the approach to design has changed significantly. While guests themselves are no longer afraid of being bold and colorful, hotels now decorate their rooms in a more natural, welcoming way, combining eclectic elements: contrasting colors and vibrant, old and new. There are more unexpected texture combinations in hotels. The hospitality industry is hitting a new wave of design, where love of history is intertwined with modern elements and functionality.

A boutique approach to hotel design helps create a truly authentic and immersive experience that modern guests, especially millennials, expect. Over the past nine years, hotels have learned to maintain a balance of elegance and simplicity without sacrificing the superior service of a five-star hotel.

Trend number three - high speed changes. This trend is well illustrated by how quickly the transition to online booking was passed.

Sustainability is trend number four, which has long been relevant and important for many industries and projects.

Trend number five is instagrammability. Travelers have always sought to visit scenic spots. With the advent and development of social media, this desire has only intensified. Now visiting Moscow allows you to collect likes and acquire new followers. The Independed newspaper published the results of a study by the British company Schofields Insurance, which surveyed more than 1,000 young people aged 18 to 33 years. To the question: "What is the most important thing when choosing a vacation spot?" - the majority answered: "Instrammability".

Modern hotels are racking their brains over how to make guests feel at home while out and about - trend number six. Hotels have a real mission - to create their own community. Hotels respond to the challenges of the times in different ways. To create a community, they, for example, encourage the socialization and cooperation of their guests - they organize coworking spaces in the lobby.

Trend number seven follows from the previous trend - the spread of hostels and coliving. Since the market for hotel services is tough, investors are looking for new formats. Hoteliers and hoteliers alike agree that 2019 dictates the development of collective accommodations.

Starting in 2012, cost-effective accommodation facilities - hostels - began to appear in Moscow. These types of economical hotels have gained great popularity among foreign and Russian tourists, mainly young people, and their number today is 713 units. By the way, 95% of hostels are located outside multi-apartment residential buildings, since the city policy in this direction has always been unchanged: the hotel business should not interfere with the tranquility of Moscow residents.

“Today, young travelers go for emotion, thoughtfulness and entertainment. Hotels are adjusting to market changes and tourist preferences. For example, in order to be on the same wavelength with millennials, our network has launched a special project, within which we arrange DJ sets in the lobby and restaurant, sponsor DJ contests and street art festivals. We have coworking areas for communication and work. We try to keep up with the times - we decorate public areas and rooms in a bright and unusual way. We value the ratings and reviews of our guests, we try to involve our potential clients through social networks - this is how we consistently build our reputation, ”said Natalia Grineva, General Manager of Combo Ibis & Ibis Budget Moscow Oktyabrskoe Pole.

Coliving houses and apart-hotels present new format hotel industry, for a lease of more than long term... The format begins to spread in Moscow. Visitors to Moscow stay in apart-hotels for two weeks or more. A distinctive feature of apart-hotels is the availability of kitchen equipment that allows tourists to prepare their own food. Due to longer stays, the cost of services in apart-hotels is about 20-30% less than in a regular hotel. The users of the services of apart-hotels are citizens who have arrived in Moscow on a long business trip, as well as for the purpose of education, medical services, and tourists with a large family. Today there are over 40 apart-hotels in Moscow.


* Calculations are based on average data for Russia

This market analysis is based on information from independent industry and news sources, as well as based on official data. Federal Service state statistics. The interpretation of indicators is also made taking into account the data available in open sources. The analytics includes representative directions and indicators that provide the most full overview the market in question. The analysis is carried out for the whole of the Russian Federation, as well as for the federal districts; The Crimean Federal District is not included in some surveys due to the lack of statistical data.

The hospitality industry (hotel business) is a business aimed at providing visitors with housing, food, and organizing their leisure time. Based on this definition, we can conclude that the main customers of hotels are people who primarily make tourist and business trips. It is possible to single out, perhaps, other purposes of travel, but all of them, one way or another, will be reduced to the two indicated.

There are many subjects of the hotel business: hotels, boarding houses, guest houses, hostels, etc. Depending on their status, they provide a different set of services. However, the main product of the hotel business is the accommodation of guests in the premises of the hotel, intended for this, on a reimbursable basis. There are also related products: food, leisure, consumer services.

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According to classifier OKVED, the activity of hotels belongs to section 55 "Activities of hotels and restaurants" and has the following division:

55.1 - activities of hotels;

55.11 - activities of hotels with restaurants;

55.12 - activities of hotels without restaurants;

55.2 - activities of other places of temporary residence;

55.21 - activities of youth tourist camps and mountain tourist centers;

55.22 - Camping activities;

55.23 - activities of other places of residence;

55.23.1 - activities of children's camps during the holidays;

55.23.2 - activity of boarding houses, rest houses, etc .;

55.23.3 - renting furnished rooms for temporary residence;

55.23.4 - provision of temporary accommodation in railway sleeping cars and other vehicles;

55.23.5 - activities of other places of temporary residence, not included in other groups.

The hospitality industry does not exist as an industry on its own. Its development depends on the development of those industries that ensure the demand for its services - primarily tourism and business.

In recent years, interest in domestic tourism is growing in Russia, which is associated with a number of economic and political factors: the annexation of Crimea, the popularization of domestic tourist destinations at the state level, a decrease in the population's ability to pay, armed conflicts in the Middle East, etc.

According to the World Tourism Organization, in 2014 Russia was visited by about 28 million tourists from abroad, which puts it in 9th place in the world in terms of tourist attraction.

According to Rosstat, from 1995 to 2011 the inflow of foreign tourists to Russia increased by 27%. On the other hand, in the same period, the Russians also mastered many foreign tourist destinations - primarily beach ones: Turkey, Egypt, Thailand, Greece, Bulgaria. In 2010, the number of domestic tourists was 32 million. Unfortunately, similar data in recent years in the open sources of Rosstat or Federal agency on tourism are not represented. However, it should be assumed that in 2015 domestic tourism destinations were in even greater demand than in previous years; and in 2016 we should expect unprecedented growth in the industry.

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The main obstacle to the growth of the popularity of domestic destinations is the undeveloped infrastructure: relatively low quality of the number of rooms, service, lack of a wide range of services; all this against the backdrop of a fairly high level of prices.

As for business travel, their volume depends on the economic situation in the country and the general business activity. In 2014-2015, there has been a recession in the economy, a trend towards a reduction in the costs of business entities (not least due to a decrease in travel expenses), and a number of domestic and foreign players leaving the market. Thus, we have to state a decline in interest in hotel services oriented to business trips. Taking into account the general economic forecast, in the coming years, we should expect a continuation of the recession in this direction.

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The only predicted factor in the growth of demand for both business and tourist destinations is the holding of the 2018 FIFA World Cup in Russia.

For the most correct display of the situation on the hotel services market, the analysis of indicators provided by Rosstat is carried out according to the most representative directions of OKVED: 55.1 and 55.23.2. Areas not included in the review, such as 55.23.3 or 55.23.5, may theoretically be somewhat relevant to the industry in question, but it is not possible to determine to what extent.

Figure 1. Dynamics of the main financial indicators directions 55.1, thousand rubles


Figure 2. Dynamics of the main financial ratios directions 55.1,%


In the diagrams above, you can see that for most indicators, the industry showed negative dynamics in 2014 - first of all, gross revenue decreased. However, it is noteworthy that the profit from sales at the same time increased, which is most likely caused by a relative decrease in the cost of services - in 2014 it was more significant than the decrease in revenue. This is confirmed by the growth of the gross profit margin. The number of market players, according to Rosstat, practically did not change in the analyzed period.

In the first three quarters of 2015, the industry showed good results, almost catching up with the full year of 2014 in revenue, and even surpassing it in profit: 5.3 billion rubles against 4.8 billion. Financial ratios, on the contrary, show growth, even within the negative scale. So, for example, as mentioned above, according to the results of the first three quarters of 2015, the gross profitability of the industry surpassed the indicators of the previous five years; increased profitability of sales. The profitability of fixed assets, taking on a negative value, nevertheless increased significantly compared to 2014. The share of loans and borrowings in short-term liabilities has decreased, the degree of security has increased own funds... Such dynamics indicate a trend towards financial recovery in the industry.

Figure 3. Dynamics of the main financial indicators of the direction 55.23.2, thousand rubles.


Figure 4. Dynamics of the main financial ratios of the direction 55.23.2,%


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The situation with boarding houses and rest houses is somewhat different. In 2014, there was a significant increase in almost all indicators. At the previous - negative - level, only the profit from sales remained, which may be caused by an increase in the cost of services. The main difference between boarding houses and holiday homes from hotels is the availability of additional services, such as the provision of food, medical treatments and entertainment activities... Probably, the presence of such a complex makes given view enterprises are more vulnerable to the economic crisis.

In further analysis, we will restrict ourselves to considering direction 55.21 only for the most representative regions: the Southern Federal District, the KFD, the North Caucasus Federal District.

Figure 5. Dynamics of the main financial indicators of direction 55.1, NWFD, thousand rubles.


Figure 6. Dynamics of the main financial indicators of direction 55.1, Central Federal District, thousand rubles.


Figure 7. Dynamics of the main financial indicators of direction 55.1, Volga Federal District, thousand rubles.


Figure 8. Dynamics of the main financial indicators of direction 55.1, Southern Federal District, thousand rubles.


Figure 9. Dynamics of the main financial indicators of direction 55.1, Ural Federal District, thousand rubles.


Figure 10. Dynamics of the main financial indicators of direction 55.1, Siberian Federal District, thousand rubles.


Figure 11. Dynamics of the main financial indicators of direction 55.1, FEFD, thousand rubles.


Figure 12. Dynamics of the main financial indicators of direction 55.1, North Caucasus Federal District, thousand rubles.


Figure 13. Dynamics of the main financial indicators of direction 55.1, KFO, I-III quarter of 2015, thousand rubles.


Figure 14. Shares of regions in the formation of the market volume (by revenue) for the I-III quarter of 2015, direction 55.1,%


Figure 15. Dynamics of the main financial indicators of the direction 55.23.2, North Caucasus Federal District, thousand rubles.


Figure 16. Dynamics of the main financial indicators of the direction 55.23.2, Southern Federal District, thousand rubles.

Figure 17. Dynamics of the main financial indicators of the direction 55.23.2, KFO, I-III quarter. 2015, thousand rubles


Figure 18. Shares of regions in the formation of the market volume (by revenue) for the I-III quarter of 2015, direction 55.23.2,%


As can be seen from the diagrams above, in 2014 the general dynamics of indicators for the country as a whole is reflected in a drop in profits in almost all regions, with the exception of the Ural Federal District and the Central Federal District. In the Ural Federal District, the increase in profits occurs against the background of an increase in the volume of proceeds. In the Southern Federal District, with a significant increase in revenue, the profit actually remained at the level of 2013.

Figure 14 shows the distribution of revenue shares for the code 55.1 for the first three quarters of 2015 by region. Central and North-West are the leaders in this indicator. federal districts, which is quite logical, since along with the highest business activity, they are also of interest to a large number of tourists, primarily from abroad. As for the main resort areas, the ratio of the shares of the Southern Federal District and the KFD is quite expected - despite the high interest in the Crimean Peninsula on the part of Russians, logistics in this direction is difficult. However, a significant annual increase in the market share of the KFO is expected: the climate here is more favorable than on the coast of the Krasnodar Territory, the density of tourists is not so high; and the construction of a bridge over the Kerch Strait in the future will provide unhindered communication with the rest of the territory of the Russian Federation.

The situation is not typical for the North Caucasus Federal District, whose share is less than 1%; Since 2011, the region's revenue in this industry has decreased almost three times, which can be explained, presumably, only by the fall in popularity of the resorts of the Stavropol Territory due to imperfect room stock and incorrect pricing policy in this sector.

In terms of revenue from boarding houses and rest homes, the leaders are the KFO and the Southern Federal District, which is quite expected; in total, they occupy more than 60% of the market.

2014 was a difficult year for the hospitality industry. The combination of domestic and foreign policy factors caused a drop in hotel revenues; the profitability, however, has increased, providing a higher level of profit than in 2013. Despite the drop in certain indicators in 2014 and the lack of improvements in the state of the country's economy, for three quarters of 2015 the industry managed to exceed the profit indicators of the entire last year. Probably, market players are optimizing costs, reducing costs and increasing profitability.

The positive dynamics of 2015, combined with the growing interest in domestic Russian directions and the forced abandonment of a number of foreign ones, make the industry quite attractive for investment. First of all, this applies specifically to enterprises serving the tourism sector. The greatest interest from this point of view is the Crimean Federal District - it is to him that the greatest interest is expected from the side of vacationers, despite the fact that its infrastructure is largely a heritage Soviet Union with a low level of service and room stock. Investments aimed at creating high-quality hotel infrastructure in the KFO have a great chance to pay off in as soon as possible and provide the investor with high returns.

As for the business area, here the players will most likely need to mobilize all resources to overcome the protracted recession. However, as it shows world practice, the crisis has a healing effect on any industry, freeing the market from random and weak enterprises.

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The domestic hospitality market is going through hard times. The development problems voiced by industry analysts are considered to be a weak involvement of professionals in the field and a tangible runaway with the tourism industry. The main catalyst for supporting the hotel business in Russia is the placement of rooms in high-traffic areas. There is no need to go far to confirm such data. According to official data, almost 70 percent of the industry is taken over by hotels in two federal cities - Moscow and St. Petersburg.

Problems and catalysts for the development of the Russian hotel business in infographics:

General trends

According to official data, Russia is overall performance per capita room availability continues to lag behind European partners. At the same time, most entrepreneurs complain about the low level of customer demand. The result of low consumption is a sharp reduction in the cost of hotel maintenance and, as a consequence, a deterioration in the quality of service.

According to experts' forecasts, the ratio of the hotel market turnover in the coming years will noticeably change towards regional consumption. The interest on the part of investors is due to the attractiveness of large industrial cities, which are able to host significant conferences, stages of events of a global scale. According to the analysis of the hotel market carried out rating agencies, the regional hospitality industry has serious potential to attract business activity in a highly competitive environment.

Key analysis parameters

Most of the research carried out in relation to the Russian hospitality business is based on the indicators of Moscow and St. Petersburg. Analysis of the Moscow hostel market allows to form real key indicators, which can be used as a basis for decision-making among developers and potential investors. To help the service sector in 2010, the program “Development of internal and inbound tourism in the Russian Federation (2011 - 2018). Already today it is possible to assess the actual results of the implementation of the seven-year plan:


As can be seen from the analysis of the hostel market, at the beginning of the launch of the targeted development program, the potential of the hotel business to accommodate the internal flow of tourists was 70 percent of the maximum possible level. It is noteworthy that the market share of cities of federal significance is at the same level. In their assumptions, the experts note that the greatest success has been achieved precisely in the development of the hotel business at the regional level.

Similar growth rates have been achieved in increasing the capacity to receive foreigners. And this is how we managed to achieve an increase in the quadrature of the number of rooms. The diagram clearly shows that the active growth in construction occurred in 2016-2018, in the period ahead of the World Cup.


The most active rate of growth in the area of ​​the number of rooms occurred before the World Cup, which once again confirms the industry's dependence on significant events. According to surveys of tenants, the cost of living in apartments located in the area where the host stadiums are located increased tenfold in the summer. There have been cases when permanent tenants were sharply denied accommodation in favor of fan tourists.

As far as Moscow and St. Petersburg are concerned, the development of facilities for accommodating a tourist flow is somewhat limited in housing stock and objects of cultural significance. In the regions, the situation is somewhat different, since the potential for the construction of a new room stock by developers remains.

Loading the room stock

When analyzing the hotel market, one of such indicators of the level of demand for hotel services as occupancy should be taken into account. The industry average is no more than 49 percent. With the introduction of the targeted development program by 2018, it was possible to increase this indicator by no more than 5 percent. It should be noted that the hotel business in Russia, according to statistics, is developing much better in the regions. Everything is explained again by the activity of the mayors, who today focus on the development of tourism. With the influx of new visitors to the regions, the need for room stock also increases.

Despite the fact that there is a shortage of middle class rooms in the industry as a whole, developers continue to build hotels of classes 4-5. Following the trend is due to the fact that the average payback period for a room stock, especially a new one, is at least 10 years. There is a direct relationship here - the higher the class of the hotel, the faster investments will begin to return to the capitalists.

* Particular attention among industry representatives is focused on the seasonality of the business. St. Petersburg remains especially sensitive in this regard, and the more southern regions benefit most of all, where the tourist flow can persist for at least 5 months.

Attracting capital to the industry

If the demand in the industry from the consumer is generally understandable - there is a sensitivity in cost and quality, then investors are even more capricious. In focusing on the development of the hotel business, capitalists are guided by the industry's profitability indicators. According to research and statistics of the hotel market, the profitability of this service sector can reach the level of the niche of rented real estate for the needs of corporate parties (placement of offices, warehouses).

For example, profitability in Moscow, regions and Europe:


The results of the study of profitability clearly show the attractiveness of hotel real estate for placing not only residents, but also serious investments. This is not surprising, since Moscow is considered one of the most expensive cities in Europe.

Among the latest trends that give a real impetus to the maintenance and development of the industry is the construction of complexes of wide functionality. Among the areas that such centers will cover is the creation of accommodation facilities for vacationers.

 

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