Date: September 2017
Location Kyiv/Kiev, Ukraine, near the National Olympic Stadium and 8km from the airport.
Name: Park Inn by Radisson Kyiv Troyitska, – four star
No. of Keys: 196
Buyer: The real estate and development business division of Smart-Holding and badged under the Carlson Rezidor’s Park Inn brand, this being their fourth hotel in Ukraine and third in Kyiv city. It’s Smart Holding’s first hotel investment. They are one of the largest investment groups in Ukraine, specialising in key industries including metallurgy, oil and gas, shipbuilding, agriculture and real estate.
THPT Comment: Delighted to see some faith coming back into Kiev/Ukraine after their political woes of recent years.
According to STR, Kiev’s ADR decreased 0.2% to $106.95 compared to the first half of 2015. In Ukraine’s provinces the metric dropped 8.3% to $75.85. However, RevPAR increased 23.2% to $46.01 for Kiev, and grew 8.8% to $35.99 in Ukraine’s provinces.
The decline in ADR could point to a continued lack of confidence in the Ukraine hotel industry. Furthermore, the achievement of 40% occupancy is still not enough to revive interests in new hotel construction, according to Alexander Nosachenko, managing director of Colliers International Ukraine.
“Investment attractiveness of the hotel industry is practically close to zero,” he said. “Several projects have been rescheduled for commissioning for 2016, but it is very likely they will be rescheduled further, until the country’s economy can show stable growth.”
At the moment, there are several huge projects in the pipeline for Kiev, including Sheraton Kiev Olympiysky (190 rooms), Aloft (312), St. Petersburg (50), Ibis 2 (350), Renaissance Kyiv (173), Azimuth Hotel (235), the Indigo (240), and Best Western Plus (120).
Analysts said the launch of these hotels will increase the overall number of rooms in the city by more than 10% and certainly cause a drop in average occupancy for Kiev hotels. A similar situation is occurring in the provinces, where hoteliers so far have refrained from commissioning previously announced projects.
Colliers International also pointed out that occupancy dropped from 55% in the beginning of 2014 to 30% by the end of the year. Operational indicators suggest a recovery, but occupancy so far has not reached the levels of 2013.
Veller noted that no branded hotels have yet been launched in Kiev. She said the most important factor for previously announced projects to be implemented is the increase of ADR in hard currency. She explained that most hoteliers took loans under projects in hard currency, so increase of rates is necessary for them to feel confident again.
In general, with the continuing of current trends, the Ukraine hotel industry could return to pre-crisis levels of operational performance in the next two to three years.