For Luxury Hotels, Russia Rules In Big Emerging Markets
If you?ve ever stayed at the Radisson Royal, the old Hotel Ukraine in Moscow, you know why Russia is the No. 1 luxury hotel market in the big four emerging markets. Bugattis and Ferraris in the parking lot; Rolls? for sale in a showroom to the left of the entrance.Toilet paper?like you?ve never seen in your life. This is where the one percenters go to nurse a glass of Russo-Baltique on the rocks by the river.
Of course, Moscow being home to the highest concentration of billionaires also helps.
Russia?s luxury hotel market has grown around +12.8% year over year, according to a report released on June 6 by the Digital?LuxuryGroup, a luxury market research firm tracking consumer travel trends. By comparison, Brazil?s luxury market showed a regression since last year at -12.1%.
The report was done with the Chair of Luxury Hospitality of Ecole H?teli?re de Lausanne.
According another study on Russia in particular, this one by Smith?TravelResearch Global, there are a total of only 550 hotels (mid- to upscale and luxury hotels), with 83,127 rooms in Russia. Of this total, 145 properties with 36,542 rooms are in Moscow.
The fastest growing hotels in the BRICs, according to Digitial, are the Shangri-La hotel in Brazil (+72%), Hyatt Regency in Russia (+89%), Ritz-Carlton in India (+59% ? with a new property set to open this summer) and St. Regis in China (+56%). The most popular international destinations for people coming from the BRIC nations were: Miami and New York for Brazilians; Hurghada, Egypt and Dubai for Russians; Singapore and Dubai yet again for Indians and Singapore for Chinese travelers staying in luxury hotels.
Starwood leads in BRIC markets, but Dubai-based Jumeirah is the most rapidly growing hotel among those in the top 25 luxury?hotel groups as ranked by Digital Luxury Group.
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Source:?Kenneth Rapoza (2013). For Luxury Hotels, Russia Rules In Big Emerging Markets, Forbes?http://www.forbes.com/sites/kenrapoza/2013/06/13/for-luxury-hotels-russia-rules-in-big-emerging-markets/ published Jun 13, 2013. Viewed Jun 18, 2013.