Business news from Ukraine

‘SAFETY SEAL’ FOR HOTELS IN UKRAINE WITH FULLY VACCINATED STAFF TO BE INTRODUCED BY END OF 2021

The “Safety Seal” for hotels with fully vaccinated personnel will be introduced by the end of 2021, head of the State Agency for Tourism Development Maryana Oleskiv told Interfax-Ukraine.
According to her, the State Agency for Tourism Development of Ukraine has developed a draft act of the Cabinet of Ministers of Ukraine on the approval of the procedure for the implementation of the pilot project “Safety Certificate of Accommodation Facilities”.
This Procedure establishes the regulation for monitoring and evaluating accommodation facilities (hotels) in accordance with the Temporary Recommendations for the organization of anti-epidemiological measures in hotels during the quarantine period due to the spread of coronavirus disease (COVID-19), approved by the Resolution of the Chief State Sanitary Doctor of Ukraine dated May 12, 2020 No. 22.
“Now the draft act is being approved by the structural divisions of State Agency for Tourism Development. It is tentatively assumed that the implementation of the pilot project will begin by the end of 2021,” Oleskiv said.

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32 NEW BUSINESS CENTERS TO OPEN IN KYIV IN 2021-2022

In Kyiv, at various stages of construction readiness, 32 business centers with a total GLA of almost 670,00 square meters (excluding large-scale facilities) are announced for opening in 2021-2022, Managing Partner of UTG Offices Volodymyr Heliuta has told Interfax-Ukraine.
According to him, according to the results of the first half of 2021, the total rental area of professional facilities in Kyiv is slightly more than 2 million square meters. In the structure of supply of space, class A accounts for 25%, B and C – 75%.
“About 52% of office space was commissioned before 2010 and today it is morally and technically outdated. Therefore, despite the permanent lockdowns, we see the interest of investors and developers in the office real estate market – frozen and postponed projects have been actively revived since the middle of 2020. Outdated shopping centers, hotel complexes, enterprises and factories are being reconstructed into office real estate,” Heliuta said.
For June 2021, the rental price per square meter a month in class A it was $20-25 excluding VAT, OPEX, utility bills and BOMA coefficients, in classes B and B + – $16-20.
The expert said that due to the release of a new proposal, vacancy is growing. Thus, in class A business centers it is 10%, in class B, B + business centers it is 10-15% with a tendency to increase.
Since the end of 2020, the tendency towards a decrease in rented space has continued. There is a growing trend towards renting turnkey office space, including fully equipped workspaces. Smaller and medium-sized tenants (especially those who are not ready to invest in renovation, improvement, furnishing of premises) are considering alternative options for changing offices.
“There is a high demand for open space offices without intricate renovations, within walking distance from the metro, in an area with developed infrastructure. In addition, one of the desired options for tenants is parking for bicycles and electric vehicles, as well as the opportunity to take a shower. Flexible office spaces adapted to a hybrid work format that allows employees to combine remote work from home with stay in the office are becoming the new norm,” Heliuta said.
According to him, the main consumer today is the representatives of the IT sector. “Adaptive offices are attractive for them: there are many projects and a team for 200 people – a large office is needed, few projects and the team has been reduced to 50 – a small one,” the expert said.

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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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