Latest News
HomeRegional NewsEuropeThe Q3 2014 Kiev hotel market results was a very challenging 9 months so far for the city's market
Hospitality

The Q3 2014 Kiev hotel market results was a very challenging 9 months so far for the city's market

Even prior to the current crisis, few hotels in Kiev had been able to break the 55% annual occupancy mark. Annual occupancy for the key branded hotels over the last two years has been a stable 50%. This year, for the first nine months the city is sitting at just 29%.

KIEV – JLL Hotels & Hospitality Group announces the Q3 2014 Kiev hotel market results. For reasons clear to all it has been a very challenging 9 months so far for the Kiev hotel market. The city has always been one of promise in terms of hotel performance but so far it has failed to live up to past expectations.

“Such past expectations from investors, officials and hotel brands aligned to the hosting of the UEFA Football in 2012 has driven up hotel supply on all levels. Even now there are a number of branded hotels poised to enter the market over the coming 18 months – most of which had been planned as part of the football development rush – including Park Inn, Aloft, Renaissance and Ibis”, said David Jenkins, Head of JLL Hotels & Hospitality Group, Russia & CIS, said.

Even prior to the current crisis, few hotels in Kiev had been able to break the 55% annual occupancy mark. Annual occupancy for the key branded hotels over the last two years has been a stable 50%. This year, for the first nine months the city is sitting at just 29%.

“Given that Russian clients were the main demand segment, and that essentially this segment has now ceased to exist, it can be no surprise to see such numbers”, said David Jenkins commented. “Hotels have been trying to maintain their rates throughout the year, concerned that if they were to drop or dump it would not stimulate any further occupancy – and only leave them worse off. The thinking is that when business starts to pick up that they will have been able to keep prices stable and not have killed the market entirely.”

Overall with occupancy down 42% year to date and ADR down 6% year to date, the RevPAR in the city is down a considerable 48%. We expect the gap to keep widening so that RevPAR will move to more than 50% down this year.”

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

19/07/2024
18/07/2024
17/07/2024
16/07/2024
15/07/2024