Increasing visitor numbers, a growing economy and rising average room rates are fuelling investor interest in Russian hotels according to Jones Lang LaSalle Hotels.
European CEO Mark Wynne-Smith says record-breaking revenues and low labour costs make Moscow hotels very profitable.
“Moscow is a unique but highly successful market – the demand comes mainly from business travellers,” he says.
“Expensive room rates and a shortage of affordable accommodation are contributing to the stagnation in demand from tourists. This leaves a niche in the market for the development of mid-market and budget accommodation.”
Average room rates in Moscow are $352 per night – up 20% on last year.
By staff writer