Moscow branded hotel market tipped to skyrocket | 27 September 2013
Branded hotels in Moscow have been highlighted as a potentially intelligent investment.
A new report by Jones Lang Lasalle has predicted that this market could grow by as much as 40 per cent in the next three years, due to increased interest from developers at home and abroad.
This interest is reportedly due to the fact that occupancy levels have remained above pre-crisis levels in the past few years. With the World Cup coming to Russia in 2018, the popularity of the city is likely to only grow in the next few years too.
Despite the rising levels of interest, predominantly from investors in Russia, Ukraine, Azerbaijan and Kazakhstan, there are currently very few interested sellers in the Russian capital. This could certainly raise values of Moscow’s existing stock and the new hotels being built in anticipation of the 2018 World Cup.
Businesstravelnews.com reports that 4,500 branded hotel rooms are set to be built in the next three years alone. In fact, all of Russia’s world cup cities are believed to have new hotels in the pipeline.
However, in an interview with pie-mag.com, Jones Lang Lasalle head of hotels and hospitality David Jenkins warned: “Investors need to be wary of what happens in the market in those cities the day after the World Cup has blown its final whistle.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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