Four-star hotels in Kyiv in 218 systematically reduced Average Daily Room Rate (ADR) to boost occupancy and competition with five-star hotels, which committed to increasing prices. “In February 2018, compared to other months, was the highest ADR, and by the end of the year, with the exception of May (hosting the final of the Champions League), it gradually decreased,” Partner at DEOL Partners Maryna Rymarenko said at a press breakfast.
According to DEOL Partners, the average occupancy of four-star and five-star hotels in Kyiv in 2018 decreased slightly: to 47.7% from 47.6%. At the same time, the five-star hotel occupancy rate decreased to 45% from 46%, in four-star hotels it increased to 60% from 47% in 2016.
“In the four-star hotel segment, there was a significant increase in occupancy, but it occurred along with a substantial decrease in ADR, which dropped to $113-115. That is, it was necessary to significantly lower prices in order to become more competitive. This also indicates that now the market dictates the conditions,” Rymarenko said.
According to her, ADR in five-star hotels in Kyiv in 2018 increased to $195 from $178 in 2016. “However, considering the 45% occupancy, it is not economically viable to build a five-star hotel today,” the expert said.
At the same time, according to her, due to the increase in occupancy in the four-star segment and the increase in prices at five-star hotels in 2018, Revenue Per Available Room (RevPAR) increased by an average of 8% in the market compared to 2017.
“On average, it was $78: for the five-star hotels it was $89, for the four-star hotels it was $70. Compared with other countries, it is catastrophically low to talk about the prospects of opening new facilities next year. The return on investment is very long. Stable occupancy of 64% in 2012 helped to keep a balanced ADR and on average for the market it was $164.
The main clients in DEOL Partners hotels are business tourists: they make up 90-95% of the total number of guests, she said.
“We see an increase in the number of guests from Israel, Turkey, and always a significant share is occupied by Americans and Europeans, among which No. 1 is the United Kingdom, while Belgium and France are second… But if earlier we felt the movement of business for the years, at some period of time the bankers, at another period agrarians, then lawyers – that is, it was possible to distinguish a trend in the market, now it is very difficult to outline and understand what business is coming in. That is, we cannot say what particular segment of the economy is growing and how business travel will transform tomorrow,” Rymarenko said.
According to the expert, Kyiv needs a strong mix of hostels and cheap hotels.
“There is not enough a strong mix of hostels, two-star and three-star hotels in the market that could attract more tourists to Kyiv… One can single out only Dream Hostel, which is categorized on the international market and has already entered the Eastern European market. This segment can have a fast payback period – from three to five years. However, it should be located in the center of the city, and the cost per square meter is growing now,” Rymarenko said.
According to NAI Ukraine, the number of rooms in Kyiv in 2018 increased by 7% and amounted to 12,983 in 110 facilities. According to the current number of rooms, Kyiv exceeds the figures of such European capitals as Bucharest (10,000) and Sofia (8,500), but still lags behind Warsaw (15,800) and Budapest (21,800) which is the number one capital in Eastern Europe in terms of visits of guests.
Investment and development company DEOL Partners has been operating in Ukraine since 2005.
The company is a developer and operator of the first Ukrainian network of apartment hotels – Senator Hotels and Apartments – and the first Ukrainian design-hotel 11 Mirrors.
Avia Association, the Swiss international network of fuel filling stations, represented by Polish-based Unimot, has signed a memorandum of cooperation in the fuel and energy complex of Ukraine with Wexler Group, the supplier of light oil products, the press service of Wexler Group has reported. According to the group, the first Avia fuel filling stations could appear in the country before the end of 2019.
In addition, Avia is expected to launch production of motor fuels and lubricants jointly with Wexler Group this year.
As reported, Unimot received permission from Swiss-based Avia International to use the brand in Ukraine and announced the plan to open the first fuel stations in the country in 2019. Unimot reported on the receipt of a large number of applications from Ukrainian businessmen that are owners of fuel stations interested in cooperation.
Earlier, Wexler Group also announced plans to significantly increase its presence in the retail market of petroleum products in Ukraine.
The State Fiscal Service of Ukraine has reported about growth in customs violations by 51% in 2018 compared with 2017, to 48,900 cases of violation of customs rules for the amount of UAH 3.4 billion. The authority reported that the value of goods involved in rules violation cases doubled. In 5,400 cases of violation of customs rules the State Fiscal Service seized goods for UAH 914 million.
“The most common cases are the illegal movement of industrial goods across the customs border. During this period, goods worth UAH 568.6 million were seized for committing violations,” the authority said.
Including customs seized vehicles for UAH 149.9 million, food products for UAH 119.3 million and currency for UAH 76 million.
“According to the results of international cooperation in 2018, more than 712 cases of violation of customs regulations were initiated for the amount of UAH 686.5 million. In addition, during the international cooperation, non-payment of more than UAH 21.2 million of obligatory customs payments was established,” the fiscal service said.
The territorial divisions of the State Fiscal Service, based on the responses received, initiated 29 criminal proceedings, the authority said.
The specialized fleet of Delta-Pilot, the branch of the Ukrainian Sea Ports Authority, almost doubled dredging in 2018 compared with 2017, to 1.341 million cubic meters. More than a third of this volume (497,300 cubic meters) is the result of the operation of the Meotid dredger in Mariupol and Berdiansk ports of the Sea of Azov. Last year, operational dredging was also carried out in the port of Izmail, on the Kherson marine and Bug-Dnieper-Limansky canals, as well as on the Danube-Black Sea approach canal.
Currently the specialized fleet of the Delta-Pilot branch is undergoing planned preparation for new navigation: the classification and dock repairs are carried out at all ships.
Ship repairs are scheduled to be completed in the second quarter of 2019 and, upon termination of spawning (June 1–15), they will proceed to the implementation of operational dredging.
As reported, the Ukrainian Sea Ports Authority announced two tenders for dredging in Berdiansk and Mariupol ports totaling 1.85 million cubic meters and 1.9 million cubic meters. The expected cost of work is UAH 430 million without VAT and UAH 460 million without VAT respectively.
One troy ounce=31.10 grams
