How Ribas Hotels Group Chooses a Yield Model for Each Project

Hotel real estate can generate income under two different principles: guaranteed or projected. At Ribas Hotels Group, the decision on which model to offer an investor depends not on the marketing appeal of one model over another, but on the format of the specific project. Here’s how it works, using two of the network’s complexes as examples: WOL Home Karpaty and Mandra Petrichor.

When a Fixed Amount Is Possible

The guaranteed model means the payout amount is specified in the contract and doesn’t change based on season, hotel occupancy, or actual profit. The company can only offer this model when it has a direct, unconditional obligation to pay, rather than a dependence on tourist flow.

That’s exactly how WOL Home Karpaty is structured. Part of the complex’s apartments are rented by the management company itself, housing staff from hotels across the region. This creates stable demand regardless of season, allowing the contract to specify a fixed amount for the entire term rather than a profit-based formula. The contract runs for 10 years, and the amount is indexed annually to the inflation rate, capped at 10%.

The yield on this project is 8,820 UAH per year per square meter.

When Income Is Calculated After the Fact

The projected model works differently: the payout amount is recalculated each time based on how much the hotel actually earned. The formula is straightforward:

owner’s income = hotel profit ÷ total hotel area × the specific owner’s apartment area

Hotel profit is defined as revenue minus operating costs (salaries, utilities, advertising), minus a small percentage set aside for a future renovation fund, minus the fee paid to the hotel operator for management.

The company chooses this model for projects where demand is driven purely by tourist flow, without any internal “anchor” such as a long-term tenant. That’s how Mandra Petrichor is structured: occupancy naturally fluctuates by season, so fixing a specific amount in advance wouldn’t be economically justified. Instead, the company quotes a forecast based on the hotel’s actual performance.

The stated yield for this project is 11.3% annually, specifically for the third year of operation. The complex’s first phase is already welcoming guests and showing a 25% repeat-booking rate, confirming growing demand. The second and third phases will open in 2026 and 2027, and shared infrastructure (a spa, a 650 m² restaurant, a conference hall) is designed for the entire complex and will only reach full capacity once construction is complete. The first two years of each new phase effectively overlap with the construction period, which is why the third year serves as the benchmark, once demand and reputation are already established.

How the Forecast Is Calculated

The company calculates the forecast not based on the best month of the season, but on average annual occupancy, which is around 60%. This approach produces a realistic figure rather than an inflated one.

The final result is shaped by location, the project’s concept, service level, event programming, and dynamic pricing (rates change depending on season and occupancy). The 11.3% figure is net profit, after deducting all operating costs.

What This Means for the Investor

In the projected model, the owner’s income is directly tied to the hotel’s performance: in a strong season it can exceed the stated 11.3%, in a weaker one it may be somewhat lower. That’s why the figure is quoted with “up to,” rather than as a fixed value.

In the guaranteed model, the amount doesn’t depend on season or occupancy at all. Here, the key factor is the reliability of the company taking on the obligation. Ribas Hotels Group’s portfolio includes 56 properties under management, design, and construction in Ukraine, Poland, Turkey, and Bali, the company develops 4 of its own hotel brands, manages a room fund of over 1,000 rooms, and has a guest base of 300,000+. This scale provides grounds for confidence that long-term obligations will be met. Indexation is capped at 10% per year, and force majeure circumstances temporarily suspend payments for the duration of such events.

Conclusion

The choice of yield model at Ribas Hotels Group is always tied to the project’s format, not to marketing considerations. The projected model offers the potential for higher income where results naturally depend on the tourism market. The guaranteed model offers stability where the company can take on a direct obligation. For the investor, this means transparency: understanding why a particular model was applied to the chosen project, and what the stated yield figure is based on.

Choosing between stability and the potential for higher returns? Our Ribas Invest experts will help you find the project that fits your goals.