Kiev hotel market overview (Part 1)

I plan to describe in general Kiev hotel market as one the most attractive commercial real estate objects in Kiev. I hope it would be useful for you. So - there is the Part 1.

Now in Kiev operate 117 hotels at all. 23 objects from them fall into the category of «large hotels» (more than 100 numbers), 60 considered «small hotels» with rooms amount is not exceeded by 100 units. Total rooms amount in Kiev consider as 8700 and contain 15600 places. The Kiev hotels are able to provide a residence about 1 million persons in a year. However this «resource» already today obviously not sufficiently, especially as with every year the amount of guests of city is increased on 14–15%. Approximately the third from a total customers is foreigners.

The international certificates of accordance are possessed by a 51 Kiev hotels:

5-star - 1 (Premier Palace)
4-star - 6
3-star - 17
2-star - 20
1-star - 7

Rest of hotel - is small uncategorised hotel

Obviously (I mean for Kiev), the best place is CBD. Because the main visitors are business groups, businessmen, arriving in the capital on negotiations or other business, and also foreign stars. They prefer the 4–5 stars hotels, located not far from offices and business centers, tourist areas.

Average occupancy in Kiev now is 55%. But for 4-5 hotels this figure increases up to 70%. And Premier Palace shows amazing result with 85% occupancy. But if the demand are constantly growing, the developers have to offer addition supple. Particularly with examining such parameter with other European capital. For instance in Paris, there is 38 hotel place for 1000 population, in Vienna - 25, Moscow - 10. But in Kiev this index average to 6. And the expers say that for full supply in Kiev hotel market there are 4 5-star, 15 4-star and 35 3-star hotel needed.
In spite of limited hotel supply, the prices in Kiev extremely high comparing with other European cities and local service quality. The prices start from USD 30-40 for lowest quality hotels, USD 60-150 for middle class ones and the cosmic prices for top line hotel - USD 300-3000 for night (per room obviously).

To be continued