Operational indicators for Moscow luxury hotels demonstrated positive dynamics by the end of November 2023, with average occupancy and room revenue per available room (RevPAR) increasing by 56% and 55%, respectively, compared to the same period in 2022. IBC Real Estate analyzed the hotel market in Moscow and observed high levels of operational performance, with both average occupancy and RevPAR showing growth compared to the same period in 2022.
According to Hotel Advisors (within the IBC Real Estate sample), the luxury hotels in Moscow experienced the most significant increase in occupancy (+56% compared to the first 11 months of 2022). The average occupancy rate from January to November 2023 in luxury hotels in Moscow reached 50%, compared to 34% in 2022.
Notably, since August 2023, when luxury hotels in Moscow achieved occupancy rates above 60%, the occupancy level has remained consistently above this threshold. Restrictions imposed on outbound tourism and the resulting increase in interest in domestic destinations have had a positive impact on the hotel real estate market in the capital. The accumulated potential of the population is being realized, including through stays in premium hotels, whose room inventory currently exceeds 1,000 rooms.
The average room rate from November 2022 to November 2023 reached 25,000 rubles. A record average room rate was recorded in the luxury hotel segment at 25,296 rubles. The average room rate for the first 11 months of 2023 decreased by only 0.2%. Historically, Moscow luxury hotels have primarily accommodated foreign tourists. However, amid epidemiological and geopolitical situations, their flow has decreased. To attract additional tourist traffic and ensure occupancy, some hotels have slightly reduced room rates, which has led to the desired result and contributed to the growth of room revenue.
The most significant increase in room revenue for the first 11 months of 2023 occurred in the luxury hotel segment (+55% compared to the same period in 2022). The average room revenue in November 2023 reached 12,114 rubles, while in the luxury segment, it reached a record high since the beginning of 2022 at 16,290 rubles. This growth is attributed to the revival of business activity and an increase in the flow of foreign tourists.
According to the data from the company IBC Real Estate, the performance indicators of four- and five-star hotel properties in St. Petersburg reached peak values for the past three years during the summer period of 2023.
