In the first quarter of 2025, there was a steady increase in the average profitability of hotel rooms in key tourist and business regions of Ukraine. This growth is attributed to several factors: a revival in demand for hotel services, active development of domestic tourism, and an increase in the average daily rate (ADR).
This is reported by Business • Media
Profitability Dynamics in Different Regions
Hotels in Bukovel, Ivano-Frankivsk region, traditionally demonstrate the highest profitability. The average room rate here has risen to $183, which is 29% higher compared to the same period last year. Despite a slight decrease in occupancy, the average revenue per available room (RevPar) in Bukovel increased by 27% to reach $109. In Lviv, this indicator rose by 23% to $35, while in Kyiv, it increased by 14% to $24.
Investment Appeal of Hotel Apartments
“Investing in apartments in income-generating hotels, which pay off in 8-10 years (10-12.5% annual return), is more profitable than investing in residential properties. The average payback period for an apartment in Kyiv is 12.6 years, corresponding to a 7.9% annual return.”
Analysts from Ribas Invest and Ribas Hotels Group note that investing in apartments in income-generating hotels proves to be more effective than investments in residential real estate. The payback period for hotel apartments is 8-10 years with an annual return of 10-12.5%, while the average payback period for an apartment in Kyiv reaches 12.6 years, corresponding to a 7.9% annual return.
Thus, the hotel sector in Ukraine demonstrates positive dynamics and enhances its investment appeal against the backdrop of stable demand and rising room rates.