The hotel industry in the Ukranian capital of Kiev has rebounded slightly in the time since 2014’s Ukranian revolution, which brought to a head months of civil unrest and fighting in Kiev.
In the first quarter of 2014, the market had experienced some loss, with occupancy decreasing 31.7% to 26.9% and revenue per available room down 28.9% to 372.23 Ukrainian hryvnia ($17.68), according to STR Global, sister company of Hotel News Now. Average daily rate was up 4.1% to 1,382.97 Ukrainian hryvnia ($65.70) during that same time period.
In the first quarter of 2015, occupancy for Kiev hotels was 33.5%, a 24.5% year-over-year increase, according to STR Global. ADR in the quarter was up 75.1% to 2,422.02 Ukrainian hryvnia ($115.07), while RevPAR during the same period was up 118% to 811.38 Ukrainian hryvnia ($38.55).
>David Jenkins, national director and executive VP of the Hotels & Hospitality Group for JLL Russia and CIS, said occupancy has increased from the 26.9% figure posted for the first quarter of 2014. However, he noted that the figure is still behind the “stable market numbers” the Ukrainian capital enjoyed during the first quarter of 2012, when Kiev hotels posted occupancy at 52.9%.
He said the devaluation of the hryvnia has affected hard currency ADR, with the first quarter closing at nearly $150 (in U.S. dollar terms), down 20% over the previous year. He noted that during the first quarter of 2012, ADR was at $250. Going back further to 2008, the city saw ADR of more than $400.
“So overall in RevPAR the city is down 7% in the first quarter of 2015 compared to the same three-month period last year, at a lowly $45 (compared to $125 RevPAR in the first quarter of 2012),” Jenkins said.
Click to read full article: Hotel News Now