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News Release

Kiev

Q1 2018 laid the foundation for a successful year in the Kiev hotel market

Growth of all operational indices in UAH and dollars


Kiev, April 27, 2018 – JLL presents the Q1 2018 Kiev hotel market operational results market in a new format; JLL is now splitting up the market into hotels of Upper and Middle segments*. Additionally, Middle segment hotels are included in the analysis for the first time.

“Operational results of the Ukrainian hotel market are gradually recovering. Even judging by an example of Q1, which is traditionally slow, the dynamic is visible: average market-wide occupancy in the period from January to March increased by 4 ppt vs. last year, to 43%, against the background of an increasing rate,”- says Tatiana Veller, Head of JLL Hotels & Hospitality Group, Russia & CIS.

The average rate in dollars (ADR) in the Upper segments grew by 8% vs. Q1 last year, to USD160. In the Middle segments, the rate increased by 18%, to USD68. At the same time, occupancy of more expensive hotels remained at last year's level (40%), while more budget-friendly accommodation facilities sold 3 ppt more rooms (and reached 50%).

Q1 Kiev quality hotel market results in USD

Q1 Kiev quality hotel market results in USD_0805_1.png Source: STR, JLL

"While the country is experiencing gradual economic recovery and returning political stability, Kiev as a capital city attracts more of both domestic and foreign demand, which stimulates ADR growth both in USD and Hryvnia,” – comments Tatiana Veller. – “In the Upper segments hotels, the average rate increased in Q1 by 6%, to UAH9,000; this led to a 5% increase in RevPAR. The more budget-friendly market players managed to gain 15% on their average rates, growing to UAH3,900; as a result the revenue margin per room in these hotels increased by 23%.

Q1 Kiev quality hotel market results in UAH
Q1 Kiev quality hotel market results in UAHQ_0805.png
Source: STR, JLL

“Second quarter promises to be very successful for the Kiev hotel market: The Champions League final in May, as well as a large number of cultural and business events in the spring should support further growth of all operational indices of hotels in the Ukrainian capital," - adds Tatiana Veller. – “There were already two branded hotels ibis Kiev Central Station (280 rooms) and Aloft Kiev (312 rooms) put into operation since the beginning of the year. A significant for this market rooms stock increase is likely to temporarily affect the occupancy in the Middle segments, but we expect them to recover quickly, considering the steady trend towards demand growth.”

*Analysis based on STR data. The basis of the analysis is quality hotels under international and local brands. The Upper segments include the Upper segments (Luxury, Upper Upscale and Upscale), Middle segments (Upper Midscale and Midscale).


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 2017, JLL had revenue of $7.9 billion and fee revenue of $6.7 billion; managed 4.6 billion square feet, or 423 million square meters; and completed investment sales, acquisitions and finance transactions of approximately $170 billion. At the end of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of 82,000. As of December 31, 2017, LaSalle had $58.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Russia & CIS JLL has offices in Moscow, St. Petersburg and Kiev. JLL Ukraine was voted The Best Real Estate Consultancy at the Ukrainian Property Awards in 2013 and received the Award of Excellence in the Consulting company nomination at the EE Real Estate Project Awards in 2017.​