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News Release


Kiev Hotel Market Update. Q3 2014 Results

​Kiev, 13 November, 2014 – JLL Hotels & Hospitality Group announces the Q3 2014 Kiev hotel market results.

For reasons clear to all it has been a very challenging 9 months so far for the Kiev hotel market. The city has always been one of promise in terms of hotel performance but so far it has failed to live up to past expectations.

“Such past expectations from investors, officials and hotel brands aligned to the hosting of the UEFA Football in 2012 has driven up hotel supply on all levels. Even now there are a number of branded hotels poised to enter the market over the coming 18 months – most of which had been planned as part of the football development rush – including Park Inn, Aloft, Renaissance and Ibis.” - David Jenkins, Head of JLL Hotels & Hospitality Group, Russia & CIS, said.

Even prior to the current crisis, few hotels in Kiev had been able to break the 55% annual occupancy mark. Annual occupancy for the key branded hotels over the last two years has been a stable 50%. This year, for the first nine months the city is sitting at just 29%.

“Given that Russian clients were the main demand segment, and that essentially this segment has now ceased to exist, it can be no surprise to see such numbers.” – David Jenkins commented. – “Hotels have been trying to maintain their rates throughout the year, concerned that if they were to drop or dump it would not stimulate any further occupancy – and only leave them worse off. The thinking is that when business starts to pick up that they will have been able to keep prices stable and not have killed the market entirely.”

Overall with occupancy down 42% year to date and ADR down 6% year to date, the RevPAR in the city is down a considerable 48%. We expect the gap to keep widening so that RevPAR will move to more than 50% down this year.

About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Russia and CIS JLL has offices in Moscow, St. Petersburg and Kiev. JLL, Russia & CIS was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011, 2012 , 2013 and 2014 at the Commercial Real Estate Awards, Moscow; Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg and The Best Real Estate Consultancy in Ukraine at the Ukrainian Property Awards in 2013.

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