April was the toughest month for the hospitality industry. For example, in the capital, the profitability per room in a hotel fell from 6,000 to 400 rubles. compared to the same period last year. If the last three years the occupancy of hotels in Moscow was 73–78%, now this figure has dropped to a critical 8%. The largest decline was recorded in the luxury segment: less than 5% of rooms were filled in premium hotels in April. The average tariff also fell by 19%: last month it was 6250 rubles. per night.
Representatives of the sphere wrote about the critical situation in the market in an open letter to Russian Prime Minister Mikhail Mishustin. The letter says that the market downturn due to the coronavirus epidemic has reached an unprecedented depth, they wrote. There is not enough money, as it was said in the letter, including for the payment of salaries, enterprises are forced to cut staff and prepare for closure. They asked the government to defer the payment of taxes for a year from March 1 to June 30 and insurance payments with the possibility of their full write-offs, as well as subsidize their salary costs to employees (in the amount of two-thirds of the salary), utility bills etc.
The recovery of the hotel segment will be difficult and time-consuming, according to the CBRE report. The company predicts lower revenues and higher operating expenses for hotels, which will negatively affect their gross margins.
Source: Vedomosti
