Ukrainian Kyiv continues to develop its hospitality market as largest international hotel chains continue opening up new properties. Such statement was made during the recent interview with Jean Baptiste Pigeon, General Manager of InterContinental hotel in Kyiv, as reported by Korrespondent.
Having pioneered the Ukrainian hotel market back in 2009 the chain has already built two hotels – InterContinental and Holiday Inn – and in three years it plans to open two more: Hotel Indigo and Staybridge Suites, said Mr. Pigeon.
Other major hotel chains seem to follow the suit, thus Hilton will be opening its doors in April and Radisson will expand its presence in the capital by opening a Park Inn hotel in the former hotel Sport in late summer of 2014. Early next year Marriott is going to host its first customers in the Renaissance hotel beautifully located in downtown area in the century-old building of the former Leipzig hotel.
In addition, Ukraine expects such brands as Sheraton, Aloft, Swissotel, Sofitel and BestWestern to join and expand the local hotel market in the coming years.
All in all, there have been about 10 first class hotel properties at different stages of development in Kyiv in the end of 2013.
Interestingly, according to the research company ArtBuildHotelGroup (ABHG) statistics, there are about 0.54 hotel rooms for every 1,000 Kyiv visitors today. This is several times less than in such cities as Berlin, Budapest, Prague, Vienna or Warsaw. Annually, Ukraine’s capital is visited by more than 20 million people, which means that the new hotels can rely on the steady demand for their services for a long time.
Currently, there are 113 hotels in Kyiv with a total capacity of about 11 thousand rooms, reported ABHG. Almost half of them are the economy class hotels, a quarter of them may be considered as midscale or above-average-class and 16 percent belong to the most expensive category. Notably, there are 16 hotels in Ukraine and eight in Kyiv which belong to major international hotel chains so far. Overall, in the last ten years Ukrainian capital has been launching one upscale hotel, up to three midscale hotels and up to four hotels of the budget or economy class per year. The exception was the year of 2012, when the capital opened 29 hotels prior to EURO football championship. Interestingly, in the past three years the number of rooms increased by almost two and a half times. Experts believe that the budget segment of the market has the greatest potential.
According to ABHG the situation in the Ukrainian hospitality sector is rather optimistic. Hotel business is a long-term investment with an extended cost recovery period, which can reach up to ten years in some cases, reiterated the InterContinental hotelier. “When you invest in the hotel business, it’s not a year or two. This is a long term investment, and in view of the potential of the country, and given the arrival of large brands, it speaks volumes about the long-term prospects,” concluded Mr. Pigeon.