Surprisingly, the construction of new hotels in Ukraine has escalated compared to the period prior to the conflict, albeit localized in certain areas. According to the Ukrainian Association of Hotels and Resorts (UHRA), the hotel real estate market has reached a sort of equilibrium, even though it has suffered considerable setbacks. Currently, the tourism industry thrives in a limited number of regions – mainly in the western and southern parts of the country as well as around Kyiv. Local hoteliers are pivoting towards catering for a domestic audience, prompting a shift in development strategies to introduce new kinds of resorts. Now, about “80% of the ongoing construction projects are resort hotels,” which marks a significant change given that historically, Ukrainians have been more inclined to vacation outside their country. Conversely, the expansion of business hotels has diminished or paused for the moment. Furthermore, there is an increasing focus on integrating medical services into these establishments. As of April 2024, the country is witnessing the construction of around 40 hotel properties, with a concentration in its western territories. Throughout the current year, expectations are set for the unveiling of ten new premises, predominantly apartment hotels that constitute a part of the income-generating real estate.
FAQ Section
Where is hotel construction in Ukraine currently most active?
Construction is most active in the western and southern regions of Ukraine, as well as the area surrounding Kyiv.
What type of hotel properties are being developed the most?
Resort hotels account for about 80% of the ongoing construction projects, which indicates a new trend in the Ukrainian hotel market.
Has the war completely halted tourism in Ukraine?
No, tourism is still present but is currently limited to a few regions deemed safe.
What kind of hotel properties are expected to open this year?
Ten new properties, primarily comprising apartment hotels, are expected to open in 2024.
Is there a new emphasis in the hotel market during this period?
Yes, there is an emerging trend towards medical tourism with a focus on providing medical treatment facilities at hotels.
Conclusion
In the face of adversity brought on by the ongoing war, Ukraine’s hotel real estate market displays signs of resilience and adaptability. While tourism has retracted, limiting itself to safer regions, the market has not stalled. Instead, it has reinvented its approach by developing new resort hotels aimed at domestic tourists and integrating medical services to create dual-purpose facilities. This readiness to innovate amidst the conflict underscores the determination of the Ukrainian hotel industry to not only survive but find avenues of growth within the limitations set by the current geopolitical climate.
Note: The content shared in this article originated from information reshaped and narrated here through insights available up to April 2024. The information is procured from secondary sources and AI-based aggregated news. TheUBJ does not claim the authorship or proprietary rights of the original content. Reference to the original article can be found at https://ubn.news/what-has-been-happening-in-ukraines-hotel-real-estate-market-during-the-war/.