On November 26, the Radisson Blu Resort, Bukovel hosted a private business brunch with Artur Lupashko, founder of Ribas Hotels Group, and Igor Ilchyshen, founder and CEO of Ama Family Resort, on the topic of "Investment demand for profitable real estate: how much does it cost to build a hotel in Ukraine".
During the event, the speakers said that the cost of housing construction is increasing by 16.1% annually due to changes in the cost of building materials and labor, the introduction of modern technologies, autonomous and advanced engineering systems.
In addition, amid the large supply, real investors' requirements for materials, public areas, and infrastructure are increasing, which leads to an additional increase in the cost of facilities.
Thus, according to the Hotel Franchise Development Cost Guide, the price of construction and installation work (excluding land) in international hotels is currently as follows:
- Economy class hotels - $36,000-$65,000 per room.
- Mid-market hotels - $51,000-$89,000 per room.
- High-end hotels - $79,000-$281,000 per room.
"By adding, for example, a new solution worth $200,000, the price per m2 goes up by $100-300. A good example is the HAY Boutique Hotel & Spa By Edem Family in Bukovel, where the price per m2 reaches $10,000. It has implemented a lot of interesting solutions, but the payback period is higher than in most of the market," commented Artur Lupashko.
The speakers also noted that the cost of creating hotels/apartments managed by international hotel chains is on average 1.5-3 times higher than the cost of a Ukrainian product of the same quality level.
The most attractive regions for the implementation of hotel projects are currently the western regions of Ukraine (Lviv, Zakarpattia, Ivano-Frankivsk, Volyn, Vinnytsia). They show the greatest interest from domestic tourism and an increase in tourist tax by 25% compared to 2021.
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