Kyiv saw continued growth in its hotel sector, with increases in revenues and occupancy rates in 2018, according to a presentation by research firm STR at the International Hospitality Conference in Kyiv on Feb. 23.
Revenue per available room in Kyiv’s hotels grew by 9.4 percent to Hr 1,503 ($54) per room in 2018, according to STR. However, some of that growth can be explained by currency fluctuation – in euro amounts, the revenue per room grew by 3.7 percent to 47 euros. Gross operating profit – hotel profits after all operating expenses have been subtracted – per room was not immediately available but STR remained optimistic.
“Gross operating profit per room remains on the up thanks to cuts in expenses,” STR stated.
Ivana Neskovic, an account manager with STR, said that the interest in Central and Eastern European undervalued markets continued to play a role in the growth of revenues and occupancy across the region. However, Kyiv only saw modest increases in hotel occupancy.
Kyiv has some of the lowest occupancy of the key European cities, with an average of 52.5 percent of total rooms occupied by guests throughout the year. The European average is 72.4 percent of rooms occupied throughout the year.
Still, Kyiv’s occupancy rate grew by 2.9 percentage points in 2018, compared to a 1.2 percentage point growth in the European average.
The average daily price for hotel rooms in Kyiv was 89 euros, an increase of 6.3 percent in 2018. Europe’s average daily price per room was 113 euros, an increase in 3.9 percent.
The Kyiv City Council saw reason to be optimistic in 2018, announcing that 1.9 million foreign visitors and 3 million domestic visitors came to Kyiv. This is a total growth of 800,000 people, according to the council’s press service.
STR found that the top numbers of arrivals were from Moldova, Russia, Belarus, Hungary and Poland. These countries are projected to be the top five sources of foreign visitors in 2019, with the biggest growth expected in the number of Belarusian and Moldovan visitors.
An STR survey of 860 international travelers showed that 54 percent were interested in visiting Kyiv and 37 percent were not. Many participants agreed that “Ukraine has a rich cultural heritage” and that “Ukraine has vibrant cities and a wealth of urban attractions.” However, travelers remained concerned by perceived conflict and instability.
According to the Kyiv City Council, international events such as the Union of European Football Associations Championship League finals at NSC Olimpiyskiy Stadium in Kyiv in May, spiked Kyiv hotel occupancy to more than 90 percent for two days during the championship.
