Nothing New under the Sun

Журнал CRE #272 Март2016
The crisis can be the best time for acquisition or renovation of the so-called Soviet hospitality stock. Nevertheless, against the background of flagging demand for outbound tourism and growing demand for inbound and inland tourism as well as for accommodation at the daily rate of under $100, experts recommend the hotel owners to think of renovation.

According to JLL, the total accommodation stock in Moscow, including hostels and guesthouses, counts about 50,000 rooms. Of this amount less than half – about 22,500 rooms – fall to the share of modern hotels of different classes (luxury, upper upscale and upscale segments accounting for 40%, upper middle and midmarket segments – for another 40%, and budget lodging facilities – for only 20%). 

“The rest can be ascribed to ‘antiquated’ room stock that cannot mee...
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