Element assessed the return on investment for apartments

The study paid special attention to St. Petersburg. The city receives 12.4 million tourist visits per year, compared to 26.5 million in Moscow; however, the share of serviced apartments in its total room inventory is significantly higher: about 31% compared to 10% in the capital. Demand is driven not only by tourists but also by participants in business and cultural events, students, and guests who come for extended stays.

This model is also incorporated into the Club at “17/33 Petrovsky Island.” The projected occupancy rate for the first year of operation is 79%, and the projected owner’s income ranges from 80,000 to 310,000 rubles per month, depending on the apartment. However, a larger floor area does not guarantee maximum profitability: experts cite apartments with a view and a kitchen, ranging from 30 to 50 m², as one of the most effective formats.

In the ELEMENT and MOSS Hospitality model, each partner is responsible for its own part of the product. ELEMENT creates the asset itself: it selects the location and designs the architecture, product, and infrastructure. MOSS handles the operational side, including rates, occupancy, sales, and service, transforming the apartments into a functioning hotel business.

For the owner, the relationship with the brand continues even after the purchase. The exclusive “Element First” club brings together services, partner perks, travel, and cultural and business events. Thus, the value of real estate in the ELEMENT model stems not only from financial returns but also from the experience the owner receives.

The study also analyzed 21 Russian and international serviced apartment projects, including VALO, Docklands, YE’S, Vertical Boutique, Staycity/Wilde, and Marriott Executive.