A look back at the winter season 2016-2017 results: Not all doom and gloom for quality hotels in the Russian resort markets – EuropaProperty

JLL presents the 2016-2017 winter quality resort hotels market results in Sochi and Moscow Region.

“One could expect that with the rouble strengthening and stabilizing, and reopening of long-time favourite destination of Russian vacationers – Turkey – the winter season of 2016-2017 should not be as strong as the previous one,” Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS, said. “That has not been the case, however – quality hotel stock both in Sochi as well as in the Moscow Region resorts showed very strong performance in terms of occupancies and RevPAR. Of course, during some months of the winter some clusters had to ‘give’ slightly in terms of pricing, so ADRs may have suffered here and there, but in general, we can say that the habit of traveling to local destinations seems to have settled in with Russians.”

The average seasonal occupancy in the Sochi mountain cluster has been in ‘14-’15 at 50 percent, a year later 62 percent of quality hotel rooms have been occupied, and 66 percent this year. The average rate decreased by 7 percent compared to the winter season of 2015-2016, but the mountain cluster hotels managed to keep the revenue (RevPAR) at the level of last season – slightly above RUB 5,000.