Search in blog

Friday, August 21, 2009

About Current Situation On Kiev' Hotel Market

Since the beginning of 2009 hotels occupancy in Kiev has decreased by 10-20%. This is stated in DTZ last report. Most declined segment is 5-star ones. In June this number averaged 35%, 20% lower than the same period of 2008. For example, «Opera» hotel room occupancy fell by 16% compared to same period last year.

The only way to retain customers for the hotel was cut the prices. In average at 1H 2009 that declining was for more than 40%. The biggest fall was 5-star hotels. For example, during last year, a standard room in Hyatt and Premier Palace was about USD550, for now, its price fell to USD 350/day. 4-star hotels (Riviera, Radisson) decreased the price from USD350 to USD230.

Net income per room has dropped significantly either. If in 2008, with each room with average price of $ 550 per night hotel having got USD303 income, in 2009 this figure only USD123 with average price of rooms at USD350 respectively.

However, to further cost reduction will apply, people say. 5-star hotels will not reduce prices, due significantly rosed cost of utilities. This is much expectable for the 3- and 4-star properties.