St. Petersburg Hotel market is rising

According to the data of the IBC Real Estate company, the performance indicators of four- and five-star hotels in St. Petersburg reached peak values ​​during the summer period of 2023 over the past three years.

The average room price in five-star hotels in the northern capital exceeded 24,000 rubles in June this year, an increase of almost 30% over last year’s figure, becoming the highest value in the past three years. In four-star hotels, the indicator for June was almost 8,000 rubles, showing an annual growth rate of 9%. The average occupancy rate for the month in four-star hotels in St. Petersburg exceeded 80% for the first time in three years, reaching 82.5% in July. In the same period in 2022, this was 72.5%, or 10% lower. Five-star properties have also set a record over the past three years, reaching 78.3%, compared to 70.7% the year before, almost 8% lower.

Average room turnover increased last summer in both four- and five-star hotels. In five-star hotels, the indicator exceeded 19,000 rubles in June. In May this year it was more than twice as low and compared to 2021 and 2022 it increased by 63% and 37% respectively. For four-star hotels, June also set a record: for the first time in three years, the average room revenue exceeded 6,000 rubles, an increase of 28% compared to the same period last year.

The main reason for these records is the development of domestic tourism. Guests from other regions successfully compensate for the decline in inbound tourism and become the main consumers of accommodation services in hotels. For example, at the end of 2022, Saint Petersburg ranked fifth among the most popular tourist destinations in Russia. And in the first half of 2023, more than 4 million people visited the northern capital, surpassing the figure for the same period in 2022 by 6%.