Compared to last year, the profitability of Moscow hotels has grown by a quarter.
Moscow hotels are becoming more more profitable and attractive
For a number of reasons, there is currently no additional volume of demand for accommodation options in Moscow, which does not give the market enough incentive to increase prices.
“Moscow hotel profitability increased by 25% in the first three months of 2023. The restructuring of the mode of functioning of the hotel business for the year that has passed since last February has been completed, the effect of the tax break — zero VAT rate for hotel accommodation — received and “digested”, demand volumes, in general, remained unchanged, — experts say.
The best performance is noted in the high and medium price segments, and the lowest – in the luxury segment. Profitability per room in hotels that meet modern quality standards amounted to about 5,100 rubles. It is worth noting that, on average, the profitability of city hotels does not exceed 20%.
Almost 900 new rooms are expected to open this year, which should have appeared in 2022, but this did not happen due to the need to change brand or completely abandon it. Thus, there is a positive trend in the sphere. So, for example, in 2022 the hotel market was increased by only 340 rooms.