Ribas Hotels Group is continuing to explore the development trends of the Ukrainian hotel market and presents a new study entitled “2024 Ukrainian Hotel Market Overview”. The study provides up-to-date information on the current situation in the hospitality industry in Ukraine amid the challenges brought about by the war and the pandemic.
The most important conclusions from the study follow:
- Decrease in the number of accommodation facilities. Since 2013, the number of collective accommodation facilities has been decreasing by about 175 facilities a year. The biggest decline has been in health centers, health resorts, boarding houses with medical care and tourist camps. This is indicative of structural changes in the industry that affect the available vacation options in Ukraine.
- Increase in the number of hotels and hostels. At the same time, the number of hotels (+9.1%), motels (+10.7%) and hostels (+28.7%) is on the rise, which underscores the stability and resilience of this market segment. Domestic tourism is turning to be a key driver for the growth of the hotel sector in the face of limited international traffic.
- Revival of domestic tourism. Both domestic trips and the relocation of internally displaced persons have contributed significantly to the industry's recovery. According to the State Agency for Tourism Development of Ukraine, 13 regions of Ukraine, including Lviv, Ivano-Frankivsk and Zakarpattia regions, have already exceeded pre-war tourism revenues in 2021. This shows that domestic tourism is becoming one of the key elements of the hospitality industry's rebound.
- Expansion of Ukrainian hotel chains to international markets. The war has forced some Ukrainian hotel chains, including Ribas Hotels Group, to diversify their operations abroad. Ribas Hotels Group is rapidly developing its projects in Poland, Bali and Moldova. This not only ensures the survival of the business but also creates new opportunities for growth.
- Future investment projects. At least 45 new projects of hotel and apartment complexes adding 6,670 rooms to the market along with 108 hotel-type cottage towns are expected to be implemented in Ukraine in the period from 2024 to 2026. This is one of the fastest growing segments of the market, because Ukrainians are increasingly investing in income property as an effective way to boost their savings.
Ukraine's hospitality market is still showing resilience and prospects for further growth even in the face of extraordinary circumstances. The country's tourism industry is gradually gaining ground, and the demand for domestic tourism and investment in hotel projects is further growing.
According to estimates, the number of tourists to Ukraine is expected to reach 14.5 million after the end of the war. Given these figures, the number of operating hotels and rooms on the market is far behind the upcoming demand. To meet the needs of the growing tourist traffic, the number of rooms should be increased. According to preliminary estimates, the current level of new hotel construction is too low.
If the room supply does not meet the demand, there will be a need to increase the room stock by at least 30-40% of the existing inventory.
Read more about the market in our study entitled “2024 Ukrainian Hotel Market Overview”. You can request it through the chatbot at: @income_property_bot.
The data used for analysis in the study were sourced from the State Statistics Service of Ukraine, the State Agency for Tourism Development, the State Border Guard Service of Ukraine, Tourist Barometer of Ukraine, the Main Department of Statistics in Kyiv, the Main Department of Statistics in Odesa region, the Main Department of Statistics in Kharkiv region, the Main Department of Statistics in Dnipropetrovsk region, Lviv City Council, Lviv Regional State Administration, the Ministry of Culture of Ukraine, the State Register of Immovable Monuments of Ukraine, the service portal for tourists, the hotel aggregator and the statistics aggregator.
