Steady demand from businesses has helped the segment of long-term accommodation including serviced apartments and apartment hotels, to survive the crisis. Their occupancy rate from March to July of the current year remained at the level of 30%, which is more than required for minimum ROI. Positive indicators can bring in the segment of additional interest investors, but without it, the supply volume in the segment, according to the calculations of the consultants in 2023 will grow five-fold.The format of serviced apartments (rental housing furnished with all basic services including housekeeping, Laundry, front Desk) proved resistant to the crisis, the PwC study. It says that the average load on these facilities from March to July 2020 was 30%, a decrease of 50 percentage points relative to pre-crisis levels. Despite this decline, the segment where the threshold of profitability starts by loading in 25%, were not in this crisis an outsider, agrees the head of Department of hospitality and tourism Cushman & Wakefield Marina Smirnova. For comparison: the classical occupancy hotels over the same period fell to 7-10% with normal 71%. Such consolidated data from analysts PwC and Cushman & Wakefield.PwC explain that to show the positive results of the long-term stay helped the demand for housing for professionals coming to Moscow on a business trip or for design work. The Director of the Department of market monitoring and evaluation Savills Anatoly Dovgan agrees that the service apartments were more resilient due to the possibility to switch between the options both long and short term rental and due to demand from corporate clients.According to PwC, the supply volume in the segment of long-term residence now is 1.59 thousand rooms. Unlike hotels format implies a longer length of stay. So, in the hotels of Moscow, according to estimates by PwC, guests stay on average two or three nights in apart-hotels — three-seven, in a service apartment for a few months.According to PwC, 80% of the supply of properties for long-term stays in Moscow to work in the category of “three-four stars”. The average cost of renting a “unit” in the apart-hotel category “three stars” now is 3.4 thousand rubles a day, “five stars” — 20 thousand rubles a day. For serviced apartments the same indicators are estimated at 3.8 thousand RUB per night in the category of “three stars” and 44 thousand rubles in five-star facilities. Discount for long term rent in both formats 8-15%. Managing partner of “Metrium” Maria Litinetskaya notes that the objects for long-term stay originally appeared in the premium segment, now offer spreads in a more accessible classes.Marina Smirnova suggests that thanks to the strong performance on the background of the crisis, investors after the stabilization of the situation on the markets for international and domestic tourism will consider the segment of serviced apartments and apart-hotels with great optimism. The potential for the development of the Moscow market, according to CEO Intermark Hospitality Karine Shmelevoj, is: in developed foreign markets the share of service apartments is 10% of the total hotel stock. In Moscow this figure is now less than 3%, but stated at the moment the growth rate look impressive. According to PwC estimates, by 2023, the market will have 18 projects with a total capacity of 4,5 thousand apartments. The volume of supply will increase five times. Although Ms. Smirnova notes that the payback in this segment is comparable to hotels. According to estimates by Savills, the average yield in the segment is 8-10% per annum and recoup the project for a period of up to 10 years.Marina Smirnova suggests that the major developers of such facilities long-term stays will tend to quickly get out of projects, selling apartments built by investors. According to estimates Anatoly Dovgan, renting an ordinary apartment in a high-budget segment in Moscow allows us to obtain an average yield of 4-5% per annum, the service apartment is 7-8%. Maria Litinetskaya believes that the apartments in the objects of long-term accommodation can bring to the owner of 12-15% per year.Alexandra Mertsalova, Elizaveta Makarova
