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Status of Kyiv’s hotel real estate market by the end of 2013

Status of Kyiv’s hotel real estate market by the end of 2013

Company ArtBuild Hotel Group has conducted the market research hotel real estate market of Kyiv, based on its own methodology, statistics and criteria for analysis. The research results showed that in December 2013 in capital of Ukraine registered 113 hotels with a total fund of 10 882 rooms (These are not included departmental hotels, small hotels for less than 20 rooms, hostels (of hotel type), motels). The largest market share (43%) took economy class segment, accounting for 16% of luxury rooms, mid-range category with total of 25%.

The last few years average annual growth of total number of rooms in Kiev was 3-5%. The exception was 2012, there opened 29 new hotels, which led to an increase in supply by 30%. This jump was due to the city's preparation for the "Euro - 2012". In 2013, the increase in supply has declined. That year in the capital 3 hotels "Tisa" (112 rooms), La Vilia Hotel & Ballroom (40 rooms) And "Ecotel Krakow" (27 rooms) have been opened.

At the end of 2013 in Kiev, at various stages of implementation there were more than 10 hotel projects. It is expected in the next 3-4 years to open hotels under the brands are not yet represented in the capital, namely: Swissotel, Hilton, Renaissance, Sheraton, Aloft, Best Western. There will also be enhanced network of Rezidor group in the region by opening Hotel under the brand Park Inn. In the case of realization of announced projects, in 2017 the total volume of accommodation facilities in Kiev will increase to 23.1%.

According to Daron Rose, managing partner of ArtBuild Hotel Group, “the development of the hotel market in Kyiv, Ukraine as a whole, depends on the economic situation and investment climate. The reality of 2013 significantly affected the development of the hotel industry and have led to "freeze" previously declared projects. Some hotels will of course be completed, but major qualitative changes won’t be occured in the market. Industry starts to revive only through creation of a favorable political and economic environment.”

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