Business news from Ukraine

New hotel will appear in Chernivtsi

Hotel operator Optima (formerly Reikartz) plans to open a new property in Chernivtsi in May 2024.

According to the operator’s press service, the new hotel will be opened under the Optima Collection brand.

The six-story hotel will have 58 rooms.

The Optima Hotels & Resorts chain unites more than 80 hotels in Ukraine, Sweden, Kazakhstan, Georgia and Uzbekistan.

Starting in 2023, Reikartz is rebranding its hotel chain in Ukraine under the new name Optima Hotels & Resorts. The operator operated under the Raziotel (a chain of three-star economy hotels), Vita, Optima (wellness resorts and three-star hotels), as well as Reikartz Collection and Reikartz Hotels & Resorts (three-star-plus and four-star business and resort hotels) brands.

Optima Hotel Management LLC was established in 2008. According to Opendatabot, the company’s shareholders are Volodymyr Kashutin (Lviv, 99.9%) and Andriy Dema (Kyiv, 0.1%). Kashutin is listed as the ultimate beneficiary. At the same time, until 2019, the beneficiaries were Russian citizens Yuriy Vasin, Leonid Lavrentiev and Timur Rodionov.

According to the financial results for 2023, the company’s net profit amounted to UAH 7 million, compared to a loss in 2022. Revenue increased by 40.8% to UAH 445.8 million.

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EPIDEMIC SITUATION IN VOLYN, ZHYTOMYR, IVANO-FRANKIVSK, LVIV, ODESA, RIVNE, SUMY, KHARKIV AND CHERNIVTSI EXCEEDS CRITERIA FOR EASING LOCKDOWN

The epidemic situation in Volyn, Zhytomyr, Ivano-Frankivsk, Lviv, Odesa, Rivne, Sumy, Kharkiv and Chernivtsi regions does not meet the criteria for easing lockdown, the Health Ministry said on its website on Tuesday.
The occupancy of beds, in particular, exceeds the permissible indicator of 53.31% in Lviv region. However, in Odesa and Sumy regions, the dynamics of the spread of the disease exceeds the established value of 10%.
The percentage of disease detection is higher than the established value of 11% in Volyn, Zhytomyr, Ivano-Frankivsk, Rivne, Kharkiv and Chernivtsi regions.
As reported, the Cabinet of Ministers of Ukraine introduced adaptive lockdown until August 31, 2020, changed the principle of the distribution of regions to strengthen lockdown measures.
Depending on the epidemic situation in the region or individual administrative territorial units-districts, a “green,” “yellow,” “orange” or “red” level of epidemic danger of the spread of coronavirus (COVID-19) disease is established.

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ATB-MARKET OPENS FIRST STORE IN CHERNIVTSI

ATB-Market LLC (Dnipro), owning the discount shop chain in Ukraine and part of the ATB Corporation, on November 15, 2019 opened its first store in Chernivtsi region, the press service of the company reported on Monday.
The new ATB store in the updated concept started operating at 219-E, Ruska Street in Chernivtsi. This is the 21st retail outlet that the company has opened in the Western region since the beginning of 2019. In general, the outlet became the 1043rd facility of the ATB network. Thus, on November 18, the company is present in 265 settlements and 24 regions of Ukraine.
“The priority for the development of the ATB group of companies this year remains to increase the presence of the company in the western and southern regions of Ukraine, as well as the continuation of work on updating retail facilities,” Director General of ATB Corporation Borys Markov said in a statement.
As reported, ATB-Market LLC in January-September 2019 increased goods turnover to UAH 86.3 billion, which is 17.2% of total goods turnover of Ukrainian retail enterprises.
In January-September, the average receipt for ATB stores increased by 14.9% or UAH 13.46 compared to the same period in 2018 and amounted to UAH 103.90. At the same time, an increase in the share of goods in the middle price segment is seen in the total turnover.
As reported, according to the results of 2018, the turnover of the ATB chain amounted to UAH 103.9 billion.
The retail chain of ATB-Market was founded in 1993.

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TWO SHOPPING CENTERS TO BE OPENED IN CHERNIVTSI

Average vacancy of shopping centers in Chernivtsi is growing, and in May it reached 11.2%. By the end of 2022, it is planned that total supply of retail space would expand by 47,500 square meters thanks to the opening of two new shopping and entertainment centers, UTG consulting company (Kyiv) has reported.
“In 2021-2022, the opening of the Maidan-2 shopping center (12, Independence Avenue, gross lettable area (GLA) is 38,500 square meters) and another shopping and entertainment center in Heroyiv Maidanu Street (GLA – 9,100 square meters) is planned. In general, most of the existing and leading shopping centers opened in 2004-2014 are now morally and physically outdated. Despite the high level of supply of retail space, the main urban shopping center has not yet appeared in Chernivtsi,” UTG analyst Oksana Gavrilevich told Interfax-Ukraine.
At the same time, according to UTG, the deadlines for opening the Riazan shopping center (56, Heroyiv Maidanu Street, GLA is 3,500 square meters), the Furshet shopping and entertainment center located at 11, Galytsky Shiakh Street (GLA – 18,900 square meters) are postponed for an unlimited period of time.
“By the beginning of May in Chernivtsi there is a surplus of retail premises in the amount of 2,800 0 square meters. In case of enhancing construction activity and timely commissioning of the declared facilities, the surplus will increase to 50,500 square meters, which will inevitably lead to overflow of visitors and tenants to more successful and modern shopping centers, an increase in vacancy and a review of rentals downwards, especially in morally and technically obsolete non-professional facilities,” Gavrilevich said.
According to UTG estimates, at the beginning of May 2019, five district, two residential district and nine specialized shopping centers and three detached supermarkets and a hypermarket were operating in Chernivtsi.
According to the ICSC classification, the total area of the city’s retail facilities is 122,900 square meters, which corresponds to 464.2 square meters per 1,000 inhabitants or 808.3 square meters per square km of total area of Chernivtsi.
The maximum rental rates are typical for shopping centers in the suburban districts of the city and are $11-26 per square meter a month. Minimum rental rates are fixed in the shopping center, remote from the city center or specialized ones and they are $8-12 per square meter a month, the expert said.

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