ArtBuild Hotel Group held a regular market research in hotel real estate of Kiev based on its own methodology, statistics and analysis criteria. The results showed that in December 2013 in the Ukrainian capital there are 113 hotels with a total fund of 10,882 rooms (departmental hotels, small hotels for less than 20 rooms, hostel type hotels and sanatoriums are not included to the rating). The largest market share (43%) was taken by an economy class segment, upscale facilities (upscale-luxury) accounted for 16% of the rooms, midscale and upper midscale categories are summarized for 25%.
For the last few years, average increase of total number of rooms in Kiev was 3-5%. The exceptional was 2012 in which 29 new hotels were opened and led to growth of supply volume in 30%. This jump was caused by the preparation of the city to "Euro-2012". In 2013 the growth of supply volume has dropped significantly. Only three hotels were opened in the capital for the year: "Tisa" (112 rooms), La Vilia Hotel & Ballroom (40 rooms) and "Ecotel Krakow" (27 rooms).
At the end of 2013 there were more than 10 hotel projects in various stages of implementation in Kiev. During the next 3-4 years hotels under the brands not yet represented in the capital, such as Swissotel, Hilton, Renaissance, Sheraton, Aloft and Best Western are expected to be opened. Also the Rezidor lineup already operating in the region will be expended by opening the hotel under the brand of Park Inn. In case of realization of announced projects, the total supply capacity of Kiev by 2017 will increase by another 23.1%.
According to Daron Rose, managing partner at ArtBuild Hotel Group, «development of the hotel market in Kiev and in Ukraine as a whole, depends on the economic situation and investment climate of the country. Realities of 2013 significantly influenced the development of the hotel industry and caused the "freezing" of previously declared to the implementation projects. Of course, separate hotels will be completed, but it will not bring major qualitative changes to the market. The industry starts to revive only by creating a favorable political and economic environment."
The results of marketing research by ArtBuild Hotel Group can be downloaded here.
