Ukraine’s alarming situation of its hospitality market expected to run into 2014
According to the latest market data provided by Jones Lang LaSalle, for the first 6 months of 2013, the ‘branded market’ dropped in RevPAR by almost 32% compared to the same time period last year – an alarming situation. This is coming through a drop in occupancy for the year of 10% and a drop in average rate of over 20%,”
Occupancy dropped to 48.3% in H1 2013 / Average rate dropped from USD280 in H1 2012 down to USD212 this year to date / In June 2012, during UEFA football championship, saw a city ADR (average daily rate) of USD446 with June 2013 at USD207 / With the opening of hotels such as Ibis, Holiday Inn and Ramada Encore, there should be a hope for European weekend break business segment to grow.
This year the city occupancy is sitting at 48.3% compared with 53.5% last year. The boom in hotel openings in the past few years has led to an intense competition in the city for any corporate and limited leisure business that comes in. Aligned with the well documented financial and political challenges in Ukraine, the downward trend looks set to continue with several new hotels still expected to open in the city over the next few years, including a Park Inn (4 star), Hilton (5 star), Renaissance (5 star) – due to open this year and Sofitel (5 star), expected late 2014.