The 2012 Russia, CIS and Georgia Hotel Valuation Index presents historical and forecasted value trends across 14 markets in Russia, the Commonwealth of Independent States and Georgia, giving operators, investors and owners a clearer view of the region from a valuation perspective.

According to the HVI, the recovery pace of the hotel markets of Russia, the CIS and Georgia regions has slowed to a 3% growth rate across markets in 2012, as compared to an 8% increase in 2011, with 12 of 14 markets showing positive growth figures.

The HVI also shows that despite the pressure on average rates in the Moscow and Saint-Petersburg luxury and upscale segments, the growth rates remain positive, however "rather moderate," explains Veller. "Per key values have reached 397,000 Euro in Moscow and 240,000 Euro in Saint Petersburg in 2012."

Fueled by increasing travel volumes in Russia, CIS and Georgia along with several major sports events taking place in the region, demand for quality hotel accommodation will increase. With many international chains penetrating the region in the next few years, HVS Moscow expects most markets to absorb coming supply and allow the hotel values to grow. Expected compound annual growth rate in 2013-2017 is 5.7% across the region, with four markets out of fourteen forecasted to be higher than 8% within next 5 years.

For the first time, this year's edition of the Russia, the CIS and Georgia HVI compares each market's hotel value to a base figure in the form of an index, with the base presented by the average Russia, CIS & Georgia per room value in 2007. In 2012 only the Moscow upscale/luxury segment will exhibit an index higher than 1, though by 2017 five markets are forecasted to surpass the base figure.

"Hotel development timelines continue to be lengthy and complex owing to factors such as approval processes, construction costs and licensing requirements. Professional and cautious project management will continue to be important in successful and timely development of hotel projects in the region," adds Alexey Korobkin, HVS Moscow Senior Consultant and co-author of the HVI.

"As the region develops, more opportunities for hotel acquisitions will be available. Active transaction markets will encourage more investors to consider funding or acquiring hotel projects. In 2011-12, the Moscow hotel market witnessed unusually high activity. We predict that the hotel industry in Russia, CIS & Georgia will continue offering investors strong potential for returns on the investments. The medium to long-term outlook for the region is positive, with emerging mid-market hotel sector offering a wider choice not only for the guests, but for potential investors," adds Veller.

To download a copy of Russia, The CIS and Georgia - Hotel Valuation Index , click here:

www.hvs.com/article/6027/russia-the-cis-and-georgia-hotel-valuation-index-2012