In a number of Ukrainian cities there is a phenomenon of “cannibalization” of hotel projects, when too many complexes are built on a limited territory, said partner of Apartel resorts Eugene Kudryavchenko in an interview to the agency “Interfax-Ukraine”.
“We see that in some locations dozens of projects are launched at the same time. In the short term it looks positive, but in 3-4 years, when most of the objects will be put into operation, the competition will be intensified, and some investors will face problems with payback”, – he said.
The expert emphasized that it is important to take into account not only the attractiveness of the place, but also the possibilities of the sales market, otherwise oversaturation of supply is possible.
Apartel resorts is a development company specializing in projects of apart-hotels and hotel real estate in Ukraine.
cannibalization, hotel projects
