Hotel News

Over 6,000 rooms will be opened in Russia, Georgia & CIS in 2016

According to JLL, in the 1st half of 2016 Russia and CIS branded hotel market grew by about 2,000 rooms, of which approximately 75% were opened in Russian cities.

Travel Daily News reports that the leaders in terms of new hotel openings were Moscow, St. Petersburg and Yerevan (Armenia). Three new branded properties have also opened in the Moscow region. While in St. Petersburg two new hotels started operation, including Hampton by Hilton and Best Western Plus Centre Hotel. In addition, new hotels have been opened in Nizhny Novgorod, Krasnodar, Tyumen, and Minsk.

For the 2nd half of 2016, about 4000 additional new rooms will come online in Russia, the CIS and Georgia, with approx. 2,300 of those rooms opening in Russia.  A total 6,000 rooms will have opened in the region in 2016 which is 1,315 rooms less than forecasted early this year, according to JLL.

As Tatiana Veller from JLL commented ‘the geographical spread of forecasted additions to quality room supply has changed: Rostov-on-Don, Tver, Volgograd, Voronezh in Russia, as well as Aktobe and Shymkent in Kazakhstan are no longer on the map of new openings scheduled for 2016. At the same time, new projects appeared in the Moscow region, Batumi (Georgia) and Almaty (Kazakhstan).

According to JLL, the speed of hotel openings in the region has been gradually slowing down, as the number of new openings are down from the opening in 2015 by 8% for Russia and 19%, for the CIS and Georgia. The decrease in the new openings could be a delayed effect of investors being cautious due to the economic stagnation in the region.

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