The report includes the analysis of global lodging market trends and how they apply to Russia, the CIS and Georgia.
Against the current backdrop of an unstable economic situation in Russia and the CIS, most market participants are reviewing their pipeline due to difficulties connected with raising finance. At the same time hotel chains are still prepared to enter new markets across the region. The supply of internationally branded hotels in Russia, the CIS and Georgia grew by 12% in January-December 2015 and comprised 231 hotels offering more than 48,000 rooms. Russia is the largest market of the CIS, with 151 branded hotels offering more than 33,000 rooms. Room supply rose by 11% (3,600 rooms in 22 properties) in 2015. Moscow, St Petersburg and Sochi remain the most developed markets, comprising 70% of all internationally branded hotels in Russia. The supply growth in these cities has slowed: only Moscow was able to boast three new openings for 765 rooms this year, while there were no openings under international brands in St Petersburg and Sochi. International chains are retaining their interest in regional cities in Russia, and are proceeding with entering new markets. From interviews with the hotel chains that are taking part in our survey, cities with 300,000-500,000 inhabitants are considered the most attractive for hotel chains. Confirming this trend, the first branded hotels opened in Cheboksary, Nizhny Tagil, Novokuznetsk, Rostov-on-Don, Tyumen and Ulyanovsk in January-December 2015. Carlson Rezidor Hotel Group remains the market leader in the region, with more than 11,000 rooms in 44 hotels (34 in Russia). AccorHotels consolidated its positions by offering 1,500 new rooms in 2015, and takes second place with 33 hotels operating in the region (29 in Russia). According to development plans that have been announced, AccorHotels will become the market leader by 2020: 50 new hotels will join the group's portfolio in the region within five years. The concentration of hotel chains in Russia and the CIS varies: the Russian market is more concentrated, with 76% of the room stock distributed among the top-five market players: Rezidor, Accor, Marriott, InterContinental and Hilton. In the CIS (excluding Russia) Rezidor and Marriott share a leading position and Accor's share is lower, while groups such as Rixos, Hyatt, Wyndham and Starwood all have large market shares. Each country has its leader in terms of branded room stock: Wyndham and Rixos are strong in Azerbaijan, Marriot takes first place in Kazakhstan, and Rezidor has the largest stock in Ukraine.