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Tuesday, October 2, 2007

Hyatt Regency Kiev - Direct Answers

I'm glad to present you a short interview with Irina Pshenna, recently Commercial Director of Hyatt Regency Kiev. It has been taken at August 2007 when Irina was charging for hotel. Now she is Director for Hotel Development for FUD (First Ukrainian Development). By the way, Irina perhaps the only one specialist who holds Cornell University degree for Hotel management.

I've planned to release this interview simultaneously with a hotel opening but there were much work for Irina, you know. Anyway
, I hope it would be interesting for you.

S.K. What is Hyatt's market advantage in Ukraine?
Hyatt Regency Kiev is the first five star international hotel in Ukraine. Located in a heart of Sofievska square this 234 luxury rooms hotel provides extensive conference and banqueting facilities for any occasions. The hotel offers over 1,000 square meters of meeting and function space including a 371 square meter ballroom, 8 meeting rooms and 3 board rooms. All facilities are equipped with state-of-the-art technology. The Regency brand has the specious product as Regency Club with separate check-in for business guests and . The Hyatt Regency brand is the oldest brand in the Hyatt hotel chain.

S.K. How do you forecast a hotel market developing in Ukraine within next 2-3 years?
I.P. Before EURO 2012 it will be a huge hotel development within 2-3 years, fastest when it was previous 15 years in Ukraine. All the investments will be done by Ukrainian and foreign private investors, not governmental. Most of the international hotel chains are very interested in Ukrainian market with a high RevPar and AvRate as well as occupancy in all of the hotel business and leisure segments. But die to unstable political situation and as a result high risque economical situation none of them is ready to invest in Ukrainian market. The main players are the Russian investors who are already some experience in this field in Russia as well as foreign private foundation who are ready to take a big risque awaiting a fast return of investment and low capitalization rate ( Ukraine in 8-10 years compare to Europe and States up to 20 years).
Intercontinental Hotel Group is announced already 2 hotels in Kiev: Intercontinental Golden Dome and Holiday Inn. Radisson has already 2 projects: Radisson Yaroslavov Val and Radisson Airport under development. Marriott is actively looking for the projects. Accor group announced Sofitel in Kiev and a first brand which is ready to develop destinations with 3-4 star product as Novotel and Ibis. Hilton is going to open the first hotel in Kiev in the end of 2009.

S.K. Why the office and retail markets are more booming now rather than hotel one?
I.P.Due to the fact that hotel industry is more specific one and return of investments is longer (7-8 years) for 4-5 star sector comparing to offices and trade centers which is around 5 years. Main reason is the absence of professional advisors and expertise in this field at the market.

S.K. Why international investors should pay more attention to local opportunities?
I.P. International investors have already some expertise and background in development of that type of real estate. It is a big advantage to Ukrainian investors which are staring to learn that opportunity and sometimes it takes years to learn the ways and strategies for development.

S.K. How do you estimate market share for well-known international brands in period till Euro-2012?
I.P. I think that the main players will be Radisson with expertise of Radisson Yaroslavov Val doing very well at the market and Intercontinental Group which is very pro-active and open for Ukrainian market. As for other brands my feeling are quite pessimistic as Hilton and Hyatt are to much luxury for Ukrainian market to build second property.

S.K. What is the price policy in Hyatt hotel?
I.P. Price policy is Euro 370,- up to Euro 410,- .

S.K. Irina, thank you for your time and information,

For further reference visit
Hyatt Regency Kiev