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News Release

Kiev

H1 2014 Kiev Hotel Market Results


​​​According to JLL experts, there are approximately 160 registered hotels in Kiev​ with c. 11,000 rooms. Of this, 9 hotels (c. 2,100 rooms) are branded (Hyatt, InterContinental, Fairmont, 2 x Radisson, Hilton, Holiday Inn, Ramada and Ibis). Pipeline includes Park Inn (192 rooms, due 2015), Aloft (310 rooms, due 2015), Ibis (233, 150 and 233 rooms, due 2016, 2017 and 2018. 150 rooms in combo with 100 rooms Adagio) and Renaissance (173 rooms, due 2015).

“The Kiev hotel market has been somewhat of a roller-coaster since the first branded hotels opened earlier in the 2000’s – the Radisson and the Hyatt. Extremely high rates were aligned to disappointing occupancies. Ongoing political and economic struggles over the past few years alongside a boost in hotel supply has put strong pressure on rates, with occupancies still below 60% in general until the current crisis. Both the dropping of the visa regime and the hosting of UEFA football championships have done little to stimulate the market – if anything this has stimulated an oversupply of hotels. Since last autumn, the country has of course been embroiled in major turmoil which inevitably has severely impacted hotel performance.” – David Jenkins, Head of JLL’s Hotels & Hospitality Group, Russia & CIS, said.

Total arrivals to Ukraine in 2013 was just above 23 million, the same as 2012 and a growth from 21 million in 2009. Boryspil airport is the main airport handing 65% of all Ukrainian air travel. Approximately 8 million passengers were handled in 2013.

“Demand in 2013 was flat to 2012 at around 950,000 hotel overnight stays. Clearly 2014 is seeing a significant drop in demand.” – David Jenkins noted. – “The occupancy so far in 2014 sits at below 30%, an all-time low and compares to 50% this time in 2013. Hotels are trying to maintain rates, so ADR is only slightly below that of 2013 (USD195).”

The opening of the Hilton in 2014 has added new stock and competition to the market. For now it is hard to see past the current economic and political issues facing the country. There is too strong a supply in the upscale and luxury segments when the city needs more branded economic options. There is little in the way of good news for the hotel market in Kiev this year. Planned openings have been delayed in some cases to ‘see out’ the current saturation issues.” – David Jenkins commented.

For more details see the report​.