Moscow hotels - today and tomorrow
MOSCOW, 28 SEPTEMBER 2011 – The number of new hotel rooms in the Moscow market in 2010 grew by more than 70% year-on-year (1,205 units in the crisis year of 2009, and 2,069 in 2010). In the first two quarters of 2011, another 786 units went into service. These are the findings of specialists in EY’s Hospitality and Leisure Group, as presented in the new issue of the Moscow hotel market map. Now Moscow has a total of 41,700 rooms in 282 functioning hotels. The number of hotel construction projects has grown to 254, and if all of these planned projects are implemented, the number of hotel rooms in Moscow will double to around 90,800.
“With business activity growing steadily, work has resumed on suspended projects, and new hotel projects are appearing. Restrained optimism on the part of market players has been bolstered by the stabilization of hotel operating indicators, which show stable growth since mid 2010”, notes Angelika Normann, Senior Manager and head of EY’s hospitality practice in Russia and the CIS.
Many projects are still in their initial stages, when the category and positioning of hotels has not been determined, but it is already clear that the increase in supply will be primarily in the mid-price segment (around half of the future increase in the number of rooms). Over a quarter of future projects will be located in the Central Administrative District. It is currently known that at least 15% of the future hotels will be managed by international hotel operators. Such hotel chains as Accor, Fairmont-Raffles-Swissotel, Hilton, Hyatt, InterContinental, Kempinski, Marriott and Rezidor plan to expand their presence in the Moscow market, while Four Seasons, Mandarin Oriental and Shangri-La will be opening their first hotels in the city.
This research was done by specialists of EY’s Hospitality and Leisure Group in 2011. “Our group has regularly updated this map for several years, and each time we scrupulously check the accumulated data and work closely with existing hotels, project developers and hotel operators”, adds Angelika Normann.
About EY global real estate / hospitality practice
EY has the largest globally integrated real estate / hospitality practice in relation to all other global accounting firms, with over 7,500 professionals around the world providing advisory, legal, tax and audit services to real estate owners, developers, lenders and major hotel owners/operators and construction companies.
In Russia and the CIS, we have a dedicated multi-disciplinary team of hospitality advisory services professionals, supported by EY’s global hospitality practice with representative offices throughout the world. We serve clients that operate on a local, regional and international scale. EY offers services in all areas relating to hotels, resorts, mixed-use developments, conference centers, casinos, golf clubs, amusement parks and other leisure-related assets.
Our professionals have experience in all segments of the lodging industry, from limited–service to luxury hotels, and every type of location from CBD’s to resorts. EY optimizes all the stages of hotel projects, starting with conceptual development and operating projections through assistance in selecting hotel operators and negotiating management agreements.
EY is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 144,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve potential.
EY expands its services and resources in accordance with its clients’ needs throughout the CIS. Over 3,400 professionals work at 18 offices throughout the CIS in Moscow, St. Petersburg, Novosibirsk, Ekaterinburg, Togliatti, Kazan, Krasnodar, Yuzhno-Sakhalinsk, Almaty, Astana, Atyrau, Baku, Kyiv, Donetsk, Tashkent, Tbilisi, Erevan and Minsk.
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