Business news from Ukraine

DUE TO INTENSIFICATION OF TOURISM, HOTEL OCCUPANCY IN KIEV REACHES 66%

Due to the intensification of inbound tourism, the occupancy rate of hotels in Kiev in June 2021 increased to 66%, which is 23% higher than in May, Head of the Hotel Matrix project Yelyzaveta Rudeleva has told Interfax-Ukraine.
“We see positive trends in all indicators in all major cities of Ukraine,” she added.
According to Rudeleva, Odesa is in second place in terms of hotel occupancy: an increase from 53% in May to 63% in June. This is followed by Lviv from 41% in May to 60% in June, Dnipro from 45% in May to 58% in June, and Kharkiv from 45% in May to 50% in June.
As she said, usually hotels, anticipating the high demand for the coming period, increase the price. Price and Average Daily Room Rate (ADR) certainly have different meanings, therefore, an increase in price, accordingly, affects an increase in ADR.
Compared to May, ADR indicators of all Ukrainian cities grew from 2.4% to 18.4%. ADR of Dnipro increased to UAH 3782 from UAH 3289 in May, Lviv – to UAH 2,439 from UAH 2,060, Odesa – to UAH 2,284 from UAH 2,067, Kiev – to UAH 2,031 from UAH 1,836 in May.
RevPar (Revenue Per Available Room per day) almost doubled in Lviv – from UAH 850 in May to UAH 1,557 in June. A strong breakthrough in hotels in Odesa – from UAH 1,089 in May to UAH 1,476 in June and Kyiv – from UAH 780 in May to UAH 1,345 in June. In Dnipro, this figure rose to UAH 2,174 from UAH 1,550 in May, in Kharkiv to UAH 1,058 in June from UAH 938 in May.
Statistical data for Dnipro is presented by the hotel market of four-star and five-star hotels, in Kharkiv – two-star, four-star and five-star hotels. The statistics of Kiev, Odesa and Lviv are presented by three-star, four-star and five-star hotels.

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UKRAINE MAY UPDATE HOTEL CLASSIFICATION SYSTEM IN JULY

New quality criteria and principles of hotel classification, developed by a working group under the State Agency for Tourism Development of Ukraine, have already been submitted for public discussion, President of the Ukrainian Hotel & Resort Association (UHRA) Iryna Sidletska told Interfax-Ukraine at IV International Hospitality Conference, which took place on Friday, June 18.
“The complex process of creating new quality criteria and principles of hotel classification has lasted several months. The final text has been submitted for public discussion. After receiving public comments, the working group will consider them. By mid-July, we have a chance to receive updated hotel star standards under Cabinet of Ministers resolution No. 803,” Sidletska said.
According to the expert, when developing new quality criteria and hotel classification principles, the best practices of international and national systems, in particular, the Association of Hotels, Restaurants, Pubs and Cafes (HOTREC), Hotelstars Union, as well as ISO industry standards, were taken into account.
As reported, the commission for assigning stars to hotels resumed work on March 16, 2021, and 11 meetings were held during this period.

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RADISSON HOTEL OPENS IN ODESSA

Radisson Hotel Group opened in Odessa on Derybasivska Street early June the seventh hotel of the chain in Ukraine – Radisson City Center Odessa, the press service of the company told Interfax-Ukraine on Tuesday.
“We are delighted to open the doors of our first Radisson hotel in Odessa,” Area Senior Vice President for Central & Eastern Europe, Russia and Turkey at Radisson Hotel Group Yilmaz Yildirimlar said, quoted by the company’s press service.
He said that Radisson is an upscale hotel brand that offers Scandinavian-style hospitality and has a strong potential for development in the Ukrainian market. Now it is represented in Ukraine by 1,445 guest rooms, including hotels that are under construction.
According to the press service of the company, the Radisson Hotel City Center Odessa offers 90 rooms, decorated in a laconic Scandinavian style, with a view of Derybasivska Street and the historic city center. The hotel has the Gatto Nero restaurant with two halls, seating from 30-80 guests and a conference area for business travelers seating 85 guests.
The Radisson Hotel Group is one of the largest hotel groups in the world with nine hotel brands and over 1,500 hotels in 120 countries.

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PREMIER PALACE HOTEL POSTS UAH 10.3 MLN OF NET PROFIT IN 2020

Premier Palace Hotel (Kyiv) in 2020 received UAH 10.3 million of net profit, while in the previous year net profit amounted to UAH 112.6 million.
According to the message of the company in the information disclosure system of the National Securities and Stock Market Commission on the meeting of shareholders on April 6, net profit per share amounted to UAH 0.007.
Undistributed profit of the hotel slightly decreased to UAH 1 billion.
The total accounts receivable decreased by 26.3%, to UAH 12.7 million, long-term liabilities by 52.8%, to UAH 163 million, while the current ones increased by 87.3%, to UAH 286.7 million.
In general, the company’s assets decreased by 11.7% and amounted to UAH 297.2 million.
The shareholders also intend to use 95% of the profit received in 2020 to cover losses of previous periods, and 5% for the formation of reserve capital.
Premier Palace Hotel is part of the Premier Hotels and Resorts chain managed by Premier International LLC (Kyiv).
Premier Hotels and Resorts (Premier International LLC) unites 17 hotels of categories of three-five stars under the following brands: Premier Palace Hotels, Premier Hotels and Premier Compass Hotels. The hotels are located in Kyiv, Kharkiv, Dnipro, Lviv, Odesa, Poltava, Sumy, Kherson, Pochaiv, Mukachevo (Zakarpattia region), Oleksandriya (Kirovohrad region). The total room supply of the chain is more than 2,100 rooms.

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ACCOR PLANS TO OPEN SECOND IBIS HOTEL IN LVIV

International hotel operator Accor (France) plans to open a second Ibis hotel in Lviv in 2021.
The Ibis Lviv hotel will be located in the city center, according to the company’s press release published by PRNewswire.
Earlier in April 2019, the Lviv City Council agreed on urban planning conditions and restrictions for the design, construction and reconstruction of a building located at 23A, Ivana Franko Street.
According to Zaxid.net with reference to Chief Architect of Lviv Yulian Chaplynsky, on the site of the former Charivnytsia beauty salon at 23A, Ivana Franka Street, it is planned to open a hotel of the Ibis chain of AccorHotels. The facility will become the fourth in the Ibis chain in Ukraine and the second hotel of the AccorHotels operator in Lviv.
According to the newspaper, the height of the building will not be raised, and office premises will be arranged on the technical fifth floor.
As reported, Accor has also signed a management agreement for the Swissotel Living hotel located at 13, Liuteranska Street in the Pechersky District of Kyiv, which is scheduled to open in 2021-2022.
The Accor Group, one of the world’s leading hotel operators, opened the first Novotel-branded hotel in Lille, France in 1967.
In Ukraine, AccorHotels operates three-star Ibis hotels in Kyiv, Ibis Styles and Gruner in Lviv, five-star Fairmont Grand Hotel in Kyiv, and Mercure Kyiv Congress Hotel. In addition, one hotel managed by Accor is located in Odesa – MGallery Hôtel de Paris.

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RIBASHOTELSGROUP OPENS HOTEL IN BUKOVEL

RibasHotels Group LLC (Odesa), the managing company of the national network of tourist hotel and restaurant complexes of 3-4-star categories, opened a four-star RibasKarpaty hotel in Bukovel (162a Vyshni Street, Polianytsia village, Ivano-Frankivsk region), which became the first facility of the company outside the Black Sea coast.
“In this project, we also acted as a developer who realized the purchase of the site, design and construction of the facility. And in the future we will manage the hotel under the Ribas brand … The site was acquired in early 2019, construction began in May of the same year and it was completed on December 12,” said founder of Ribas Hotels Group Artur Lupashko during an online briefing on Tuesday.
The hotel originally bore the working title of Ribas Bukovel, but Bukovel Group of Companies officially requested not to use the resort brand in the hotel name.
The total area of the Ribas Karpaty hotel is 3,200 square meters, hotel room capacity is 47 rooms. The hotel infrastructure includes the LIS restaurant with access to the terrace, coworking space with panoramic mountain views, swimming pool, Finnish and Roman saunas, jacuzzi, massage rooms, SPA area, and a children’s room.
The total investment in the project was about UAH 100 million, the estimated payback period is 9-11 years.
As reported, in 2020, the management company Ribas Hotels Group (Odesa) became an investor in the Mandra glamping network and plans to expand it to 20-25 franchising facilities.
Ribas Hotels Group LLC was established in 2017. According to the unified public register, Lupashko is the head and owner of a 100% stake in the charter capital of the company.

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