Hotel market. How the development of the tourist complex has changed the hotel market in the capital. Attracting capital to the industry

The hospitality business has traditionally remained a highly demanded service with a highly segmented focus. Only in this area can you find a wide variety of quality and service. The annual analysis of the hotel market confirms the always available business capacity, at least for those who are ready to enter an uncompetitive environment. At the top of the ratings as always large companies, increasingly acquiring the features of network retailing with aggressive promotion methods.

Starting your own business in the hospitality sector is a long-term investment. For this reason, novice businessmen need to know the intricacies of the hotel business, to have statistics on the near horizon.

🔥Who are the competitors

The high intensity of the hotel business is presented in regions of high tourist traffic. These are the federal capitals Moscow, St. Petersburg, and now Simferopol. There are always a lot of guests and business travelers in the resort area - Sochi, Kaliningrad and the Black Sea coast. The line of business is no less in demand in industrial centers - Yekaterinburg, Krasnoyarsk and Novosibirsk. A tenth of the regions awaiting customer flow, welcoming guests who have come to various festivals or to study cultural heritage.

It is too early to talk about the chain retail of the hotel business in Russia. Each region has its own leaders. Meanwhile, in the hostel market analyzes of leading rating agencies more and more four brands stand out: Azimut, the Heliopark hotel, the Russian Hotels group of companies and Intourist. The research has not yet covered a fairly large dynamically developing chain of hotels and hotels "Amaks", represented in 22 Russian cities.

Business development in the place of presence of one of these brands will be very difficult, since these companies rely on existing practice, professional staff and modern instruments promotion.

If we turn to studies of a narrower segment, for example, to analyze the Moscow hostel market, then in the capital the market capacity and business liquidity always remain at their best. In 2012 alone, this market niche showed a fourfold increase in terms of key indicators. In the year 2016, Moscow had a fund of 52,000 rooms. The capital met the 2018 World Cup with 950 hotels. And this, not counting the owners of vacant apartments, who took an active part in the placement of the incoming stream. The price tags are known to all Russians firsthand. For 2019 and in the future, Moscow will have a jubilee arsenal of various kinds of hostels and hotels in the amount of a thousand.

💼Composition of participants, business strategies

The business structure remains quite diversified. Following the example foreign countries the Russian consumer approaches the choice of the number of rooms quite practical - for the available budget. The composition of participants and the level of service for 2019 is already being adjusted according to the results of the completed program "Development of internal and inbound tourism in RF "for 2011-2018. Also, when compiling the rating, the requirements of the mandatory classification of hotels with more than 15 rooms, which are mandatory from 2019, were taken into account.

Analysis of the hotel market by type of room stock reveals different consumer preferences and compliance with the level provided by entrepreneurs. It is rather difficult to understand the detailed classification, therefore organizers of mass trips and posted workers often resort to it.

In Russia, the statistics of the hotel market is supported by all types of services, while enterprises choose a unified strategy for “packaging” tariffs. These are different types of room stock at one point of sale, availability additional services, paid separately. A prime example of such service is food or treatment (in sanatoriums). Thus, the consumer reserves the right to choose the set of services he needs, which is available to him according to his needs and budget.

🔝Potential for increasing customer flow, problems

According to statistics, the hotel business in Russia lags far behind the world level. And the point here is not so much in the service as in the skillful management of enterprises. Analytical agencies often point to such a disadvantage as the lack of interaction with obviously related industries, such as tourism and cultural, sports and other mass events... The lack of capacity lies in the low level of readiness to maneuver the service. For example, a group of corporate tourists, before departure, requests a certain number of rooms of a certain level at the place of their future stay. In the absence of a full offer, the company processing the application will be able to provide either part of the need, or risk losing the client altogether. In this respect, the "star rating" of hotels according to the classification has a dual effectiveness.

Considerable success in the industry has been achieved in attracting foreigners. Attraction transport companies for organizing transfers, local authorities and cultural workers proves once again that hotel business works perfectly in a state of symbiosis.

💰Business profitability

According to 2018 data, the average occupancy of the room stock was 54%. Such indicators in the industry were achieved thanks to the activity of entrepreneurs and the introduction of a number of government programs... From the point of view of investment attractiveness, the payback horizons of a business are in the range from 5 to 15 years. Despite the obvious profitability of the lacking middle class fund, developers continue to focus specifically on upgrading hotels to the highest class or building new buildings.

The hotel business in Russia remains attractive for both entrepreneurs and investors. Additional industry catalysts are support government agencies and interaction with related businesses.

Moscow, possessing a unique cultural and historical heritage and playing an important role in political and economic life modern Russia, has every reason to apply for a position largest center business and cultural tourism not only on a national scale, but also 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 tourist market For example, event tourism, pilgrims, students and teachers, people who come for 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; improved training professional staff 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 on the market is hotel services in Moscow lies in the fact that builders and investors, 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 Moscow hotel market has been developing at a rather slow pace and has been 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 the financial and economic crisis, the flow of business tourists, which made up the main share in the structure of tourist flows, is decreasing - about 40% of the total inbound flow.

The events that take place in the global 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 capital hotel market, which did not show high dynamics in favorable economic conditions, in the current situation will become even more complicated. 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 report "Hotel Market Survey for the first six months of 2009" international company Hogg Robinson Group (HRG), an 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. 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 consulting company Blackwood, in the first half of 2009 the demand for services of 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, Kremlin hotel complex), noted in 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 (Moscow International Business Center "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-
Four Season Hotels & Resorts	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")
InterContinental Hotels Group	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 in 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,

Cushman & Wakefield Hospitality & Tourism estimates 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 are the hotels of the Luxury segment, where prices increased by an average of 13.5%, to 14,016 rubles per 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?

The recovery in demand for hotel services, which has been observed in Moscow hotels with practically no change in the growth vector over the past 12 months, with an obvious acceleration of the pace, 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 to price category stop the outflow of customers by reducing the price of 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.

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. Revenue from the provision of additional services in is up to 40% of the total revenue of the hotel.

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 are now decorating 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 training, obtaining medical services and tourists with a large family. Today there are over 40 apart-hotels in Moscow.

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