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News Release

Kiev

On the back of strengthening operational performance, Kiev starts to receive new branded hotel rooms again


​​Kiev, November 11, 2017 – JLL presents the Q1-Q3 2017 results of the quality hotel market* in Kiev, Ukraine.

According to JLL observations, the quality hotel market of the Ukrainian capital displays persistence on continuing on the path to recovery. “Hoteliers are hopeful, the occupancy has almost climbed back up to the normal for Kiev levels (46% YTD, 7.6 ppt higher than the previous year so far). The international, MICE and cultural events are starting to fill up the city again, bringing in big groups and guests to the hotels, and tourists seem to return to this undoubtedly interesting cultural and historic leisure destination.” – Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS, says.

The USD rates in quality hotels in Kiev have been relatively stable (so far having only lost 2.5% off the ADR since the beginning of the year), and in January – September having reached $148. JLL experts suspect that this is more an artificial loss, due to the local currency fluctuations, rather than a real drop in rates. Hryvnia-denominated rates are slowing growth, but still show a positive trend – 1.2% gain YTD, to roughly 3,900 UAH. Trying to book a room on the touristic portals like Booking.com shows that the intentions of the hotel managers are set on keeping the prices high, especially now, when the demand started to recover.

​Q3 YTD Kiev quality hotel market results in USD
Q3_Kiev_quality_hotel_market_results_in_usd_071117.png
Source: STR​, JLL

RevPAR continues to demonstrate positive trends, first of all due to the Occupancy growth. YTD in USD terms YoY it increased by almost 17% (to $68), in local currency – by 21% (reaching 1,800 UAH).

​Q3 YTD Kiev quality hotel market results in local currency vs. UAH-USD exchange rate
Q3_Kiev_quality_hotel_market_results_in_local_currency_071117.png
Source: STR Global, JLL, National bank of Ukraine

“This year is also the first time in three years that we should witness any internationally-branded hotel openings in the Ukrainian capital, and this shows that the investors trust that the bottom of the economic cycle has been reached, the stability settled in, and that it only looks up from here. We have seen Park Inn Troitskaya, first Park Inn in Ukraine enter the market in Q3; in early Q4, the first Mercure started receiving guests (rebranding of a former Cosmopolite hotel), and there is also a first in the country Aloft announced for opening before the New Year comes. If all announced hotels open doors, this will increase the branded hotel rooms offering in the Ukrainian capital by 664 rooms of which 352 already started receiving first guests.” – Tatiana Veller adds.



* All statistics on operational results are sourced from STR Global with segments based on JLL configurations. The analysis covers mainly Upscale, Upper Upscale and Luxury segments. 



About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and on behalf of its clients managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 billion of real estate under asset 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, 2006-2017 at the Commercial Real Estate Awards, Moscow; Consultant of the Year at the Commercial Real Estate Awards 2009, 2016, St. Petersburg; Consultant of the Year at the RCSC Awards in 2015, and The Best Real Estate Consultancy in Ukraine at the Ukrainian Property Awards in 2013.