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News Release


2017 Kiev quality hotel market results

Highest positive Occupancy dynamics for five years, RevPAR recovery in USD and hryvnia

​​​​Kiev, February 05, 2018 – JLL presents the 2017 results of the quality hotel market* in Kiev, Ukraine.

According to JLL experts, quality hotel market in Kiev continues to rebound. Boryspil airport reported increase in passenger flow by approx. 17% (over 10m arrivals in 2017, out of which 3.2m were transients). Currently, the strategy of Boryspil airport, biggest Ukrainian hub, is to attract more economy and low-cost airlines (at the moment in negotiations with Ryanair and WizzAir), which should additionally boost weekend tourism. Ukrainian low-cost carrier SkyUp should start its flights in April 2018, primarily to most popular recreational destinations in Europe, however some flights would be launched domestically.

In 2017, Kiev saw the first few hotels under international brands enter the market: Park Inn by Radisson Kyiv Troyitska (196 rooms), Mercure Kyiv Congress (160 rooms). Another signal of the market improvement is that IKEA and H&M are scheduled to open their first shops in Kiev in 2018, and this success story is what is needed for international business community to start perceiving Kiev and Ukraine as an interesting and safe destination for investment again.

“In the Ukrainian capital in 2017 quality hotels’ occupancy rate increased by 7.4 ppt, to 47.3%. This is the highest positive dynamics in the past 5 years. Since 2014 the occupancy of quality hotels in the Ukrainian capital has been growing at the rate of 5 to 7 ppt annually, therefore, should in 2018 the average speed of recovery remains the same, the occupancy index in 2018 will reach the threshold of 2012 (52.1%),” - Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS, comments. – “We are expecting a couple more openings to hit the market under international brands here in the upcoming year: ibis Kiev Railway Station (280 rooms) and Aloft Kiev (312 rooms) are scheduled to open in 2018.”

​Kiev quality hotel market results in local currency vs. UAH-USD exchange rate
​Kiev quality hotel market results in local currency vs. UAH-USD exchange rate_05022018.png
Source: JLL, STR

Despite the fact that Kiev hotel market is recovering quickly and stably, it is still highly affected by economic and political situation. ADR growth was very slight in hryvnia – 2.6%, to UAH3,939. Yet, when comparing USD-denominated rates year-over-year, there is a slight ADR drop (by 1.3%), which still allowed RevPAR index in USD to increase by 16.8% and reach USD70 basing on strong gains in occupancy. RevPAR index in hryvnia reported growth of 21%, to UAH1,851. “For ADR to reach the level of 2013 in USD would take another several years. This process is, first and foremost, subject to recovery of the macroeconomic indices.” – Tatiana Veller says.

​Kiev quality hotel market results in USD
​Kiev quality hotel market results in USD_05022018.png
​Source: JLL, STR

“The calendar of business and leisure events in Kiev looks extraordinarily full for 2018. There will be international sporting events (Final of UEFA Champions League, for example) and various concerts by world-class musicians (e.g., Imagine Dragons, Thirty Seconds to Mars, Franz Ferdinand, Nothing But Thieves, David Guetta, Bones, etc.) in addition to numerous conferences and exhibitions. This stimulates domestic tourism and attracts foreign travelers, as due to cheap hryvnia, Kiev is still professed as a budget tourism destination.” – Tatiana Veller concludes.

​ * All statistics on operational results are sourced from STR 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.