Ukraine August, 2018
MID-YEAR 2018 RESEARCH & FORECAST REPORT
1 Mid-Year Report | 2018 | U kraine | Colliers International
KEY TRENDS OFFICE
SUMMARY RATE JUNE 2018 The significant decrease in vacancy rates in office buildings and Total Office Supply 1 848 ths. m² positive trends in the national economy boosted developers‘ Vacancy 7% activity. The prime headline rent in $32/m²/month Grades A There are still some problems with debt financing, but nevertheless several large-scale projects are expected to launch Source : Colliers International in 2020-2021 in addition to those previously announced.
The sales market has been revived. Several office buildings TOTAL OFFICE STOCK, KYIV, ths. m² located in the city centre have been sold this year.
SUPPLY Provided that all business centers scheduled for completion in 2018 are commissioned on time, 48 000 m² of new office space will enter the market. Lagoda BC, phase 3 (GLA - 2 100 m²); BC at 54 Gaidara St, (GLA ~ 12 000 m²); Astarta BC, phase 3 (GLA ~ 10 000 m²); Unit City BC, 2-3 phases (GLA ~ 16 300 m²); Podil Heritage BC at 28 Verkhniy Val St.(GLA ~ 3 000 m²); Office building at 101 Vladimirskaya St.(GLA ~ 5 000 m²).
Source: Colliers International DEMAND
DEMAND STRUCTURE The renewal to relocation/expansion/market entry ratio is approximately 60:40. Which indicates a growing demand for high quality office space. In the first half of the year the demand for high quality office space mainly came from IT companies (28%), professional services (19%), manufacturing (16%) and trading (17%). IT sector continues to make up the biggest share of demand. Overall, 23% of all lease agreements were signed for 1000-2000 m² lots. Following the general trends of the previous years, the demand for quality office space came primarily from international companies, which accounted for 76% of the total transaction volume.
Source : Colliers International
2 Mid-Year Report | 2018 | Ukraine | Colliers International
VACANCY & RENTAL RATES RENTAL RATES AND VACANCY The total vacancy rate* dropped from 7.6% at the beginning of the year to 7% at the end of June 2018. High demand in combination with low construction and commissioning rates of Grade A and B business centers is the main reason for the steady decline. The prime headline rent increased from $28/m²/month at the beginning of the year to $32/m²/month at the end of June of 2018. The average rental rates range as follows:
• Grade А: $15-32/ m²/month; Source : Colliers International • Grade B: $12-20/ m²/month; • Grade C: $7-11/ m²/month.
VACANCY, % FORECAST The development activity is expected to recover. Many developers have calculated the potential income and are ready to enage with new projects. However, tenants should expect that the market will favour the landlords during next 1.5-2 years. It is rather obvious that during this period of time the supply will not meet demand.
*Selective data used
Source : Colliers International
AVERAGE BASE RENT BY GRADE
Source: Colliers International
3 Mid-Year Report | 2018 | Ukraine | Colliers International
Major Completed and Pipelined Business Centers, Kyiv GLA OVER 7 000 m²
№ Property Аddress Year of Gross leasable area completion (GLA), m² 1 Artem BC 4 Hlybochytska St. 1997 9 900 2 Podil Plaza BC 19 H. Skovorody St. 2000 19 800 3 Kontraktovyi BC 2a Kostiantynivska St. 2000 8 000 4 Forum Business City BC 13 M. Pymonenka St. 2002 23 000 5 Stand BC 14 Vasylkivska St 2003 10 000 6 OB at 18/7 Kutuzova St. 18/7 Kutuzova St. 2003 7 200 7 Cubic Center BC (phase 1) 3 Sholudenko St. 2003 7 000 8 Inkom BC 31/33 Smolenska St. 2004 12 700 9 FIM Center BC 17 Liniina St. 2005 8 000 10 Forum Park Plaza BC 7-9 Bandery Ave. 2005 32 000 11 Irva BC (phase 1) 10/14 Radyshcheva St. 2005 11 000 12 BC at 1 Dniprovskyi descent 1 Dniprovskyi descent 2005 8 000 13 BC at 23 Haharina Ave. 23 Haharina Ave. 2005 7 000 2005, 2007, 14 Illinskyi BC (3 phases) 8 Illinska St 37 100 2008 15 Tri Zhelaniya BC (3 phases) 14а Bazhana Ave. 2006 18 000 16 HPBC 4 M. Hrynchenka St. 2006 16 000 17 OB at 26 Lesi Ukrainky Blvd. 26 Lesi Ukrainky Blvd. 2006 13 000 18 BC at 54/19 Avtozavodska St. 54/19 Avtozavodska St. 2006 12 000 19 Itera BC 42/44 Pochainynska St. 2006 10 000 20 BC at 4 Verkhnii Val St. 4 Verkhnii Val St. 2007 13 800 21 Faringeit BC 30v Fizkultury St. 2007 10 600
4 Mid-Year Report | 2018 | Ukraine | Colliers International
№ Property Аddress Year of Gross leasable area completion (GLA), m² 22 Komod BC 1 Lunacharskoho St. 2007 12 800 23 Grand Step BC 24d Polieva St. 2007 9 500 24 BC at 68 Verkhnii Val St. 68 Verkhnii Val St. 2007 7 500 25 BC at 92-94 Dmytriivska St. 92-94 Dmytriivska St. 2007 8 000 26 Palladium Plaza BC 172 Antonovycha St. 2008 16 000 27 BC at Fizkultury St. 28 Fizkultury St. 2008 11 000 28 Vector BC 10h Starokyivska St. 2008 16 000 29 Granit BC 8b Raisy Okipnoi St. 2008 12 600 30 Mikom Palace BC 27 Dehtiarivska St. 2008 10 000 31 OB at 5 Zoolohichna St. 5 Zoolohichna St. 2008 9 200 32 BC at 6 M. Dontsia St. 6 M. Dontsia St. 2008 7 000 33 Karavan BC 12 Luhova St. 2008 7 000 34 Protasov BC 2/1 M. Hrynchenka St. 2009 22 700 35 HPBC II (phase 1) 12 Amosova St. 2009 16 000 36 Irva BC (phase 2) 10/14 Radyshcheva St. 2009 11 300 37 Prague BC 6 V. Sosiury St. 2009 8 500 38 Vremena Goda BC 16 Kudriashova St. 2009 7 100 39 HPBC II (phase 2) 12 Amosova St. 2010 18 300 41 Forum Kinetic BC 12 Lyvarska St. 2010 9 500 42 Eleven BC (phase 1) 11 Solomianska St. 2010 8 300 43 Flora Park BC 8 Tankova St. 2010 8 600 44 Cosmopolite BC 6 V. Hetmana St. 2010 14 000 45 Premium Center BC (phase 1) 6 Lepse Blvd. 2011 38 000 46 Rialto BC 18 Novokostiantynivska St. 2011 15 500 47 Shchekavytskyi BC 23-25 Frunze St. 2011 10 300 48 BC at 19 Druzhby Narodiv Blvd. 19 Druzhby Narodiv Blvd. 2011 8 000 49 Europe BC 101/103 Stolychne Highway 2012 20 000 50 Crystal BC 175-177 Kharkivske Highway 2012 10 000 51 Forum Victoria Park BC (phase 1) 7 Okhtyrskyi Lane 2012 7 000 52 Silver Breeze BC 1v Pavla Tychyny Ave. 2013 26 000 53 SP Hall BC 28а Bandery Ave. 2013 22 000 54 MERX-2 BC (phase 2) 15 Leiptsyzka St. 2013 15 400 13/15 Bolsunovska 55 IQ BC 2014 32 100 (Strutinskogo) St. 56 Forum Victoria Park BC (phase 1) 7 Ohtyrskyi 2014 14 400 57 Domino BC 51 Nyzhnii Val St. 2014 9 000 58 Volna BC 36 Konovaltsa (Shchorsa) St. 2014 27 000 59 Podol Prestige BC 27-29 Nyzhnii Val St. 2014 13 000 60 Sigma BC 6 V. Havela (Lepse), Blvd. 2015 19 500 61 BC at Holosiivskyi Ave. 132 Holosiivskyi Ave. 2015 15 000 62 BC at Dorohozhytska St. 8 Dorohozhytska St. 2015 8 000 10/14 Radisheva St 63 BC «IRVA » ( phase 3) 2016 8 000
64 Forum West Side BC 6 Teligy St. 2017 8 000 65 Astarta BC 58 Yaroslavska St. 2017-2018 35 000 66 Unit BC 8 the Khokhlov family St. 2017-2018 34 000 67 Forum Amursky BC Amurskaya St. 2017-2019 9 000 68 Forum West Side BC 6 Teligy St. 2018 12 000 69 OB at 1 Sagaydachnogo St. 1 Sagaydachnogo St. 2018 8 000 70 BC "Lagoda" 21 Polevaya St. 2018 2 100 71 Podil Heritage BC 28 Verhiy Val St. 2018 3000 72 Citygate BC 1 Magnytogorska St. 2019-2020 45 000
5 Mid-Year Report | 2018 | Ukraine | Colliers International Major Completed and Pipelined Business Centers, Central Business District (CBD), Kyiv, GLA over 7,000 m²
№ Property Аddress Year of Gross leasable area completion (GLA), m² 1 OB at 101 Volodymyrska 101 Volodymyrska 2018 5 000 2 Dynasty BC 46 Antonovycha St. 2015 8 900 2 Moskovska St. / 32-34/2 Riznytska 3 Senator BC 2014 40 000 St. 4 BC at Velyka Vasylkivska St. 98 Velyka Vasylkivska St. 2014 9 000 5 Gulliver BC 1 Sportyvna Sq. 2013 70 000 6 101 Tower BC 57 Lva Tolstoho St. 2012 43 000 7 Toronto BC 100 Velyka Vasylkivska St. 2012 36 000 8 BC at 70 Saksahanskoho St. 70 Saksahanskoho St. 2011 9 600 9 Capital Hall BC 31 Zhylianska St. 2009 7 000 19/21 Bohdana 10 Leonardo BC (phase 2) 2008 18 200 Khmelnytskoho St. 11 Prime BC 48/50 Zhylianska St. 2008 9 500 12 Maxim BC 33v Antonovycha St. 2008 8 700 13 Renome BC 5 Dymytrova St. 2008 8 500 14 Parus BC 2 Mechnykova St. 2007 47 000 15 Eurasia BC 75 Zhylianska St. 2007 27 900 16 Renaissance BC 24 Vorovskoho St. 2006 15 000 17 OB at 5 Velyka Vasylkivska St. 5 Velyka Vasylkivska St. 2006 8 000 Tarasa Shevchenka Blvd. / 18 Europe Plaza BC (1-2 phases) 2005-2006 36 000 Saksahanskoho St. 19 Leonardo BC (phase 1) 17/52 Bohdana Khmelnytskoho St. 2005 14 000 20 Botanic Towers BC 119/121 Saksahanskoho St. 2005 7 000 21 Panorama BC 20 Velyka Zhytomyrska St. 2004 7 100 22 Olimpiiskyi BC 72 Velyka Vasylkivska St. 2003 11 700 23 NTBC (1 phase) 43 Zhylianska St. 2003 7 100 24 Horizon Tower BC 42/44 Shovkovychna St. 1999 15 000 25 OB at Pushkinska St. 42/4 Pushkinska St. 1996 7 000 26 IOHC BC 9/2 Velyka Vasylkivska St. 1992 10 000
6 Mid-Year Report | 2018 | Ukraine | Colliers International
KEY TRENDS RETAIL
SUMMARY
RATE JUNE 2018 Total supply 1 290 ths. m² The Ukrainian retail market remains the most attractive segment of Vacancy 5.3% commercial property in terms of development. An unprecedented
Highest rental rate in the $72/m²/month amount of new retail space is scheduled for completion in 2018- section 100 - 200 m² 2019 with over 658 000 m² GLA under construction.
Highest shopping street rent $83/m²/month In the first half of 2018 approximately 46 000 m² of retail space entered the market increasing Kyiv‘s total leasable area of
SCs/SECs only by 3.6% compared to the beginning of the year.
Source : Colliers International The vacancy rate has dropped slightly compared to 2017, while the rental rates in the majority of shopping centres have remained stable. As of 1 July 2018 the highest rental rates in the 100-200 m² TOTAL SC STOCK IN KYIV, ths. m² section in top Kyiv shopping centers were at $72 /m²/month.
In the first half of 2018 the demand for retail space coming from tenants was moderate.
SUPPLY
At the end of the first half of 2018 the total supply of high quality space in Kyiv was 1 290 000 m² amounting to 439 m² per 1 000 inhabitants, which is much lower than in most European cities (in Warsaw, for instance, it is 600 m² per 1 000 inhabitants). In 2017 the supply of retail space was 432 m² per 1 000 inhabitants of Kyiv. As was expected, in the first half of 2018 the following projects were commissioned: Smart Plaza (GLA: ~15 100 m²), Auchan Retail Park Petrovka (GLA: ~11 000 m²) and the 1st phase of Rive Source : Colliers International Gauche (GLA: ~20 100 m²).
The main shopping centers scheduled for opening in 2018-2019 are: River Mall (GLA: ~55 000 m²); RETROVILLE (GLA: ~80 700 m²); Blockbuster Mall (GLA: ~142 000 m²); Good Life (GLA: ~ 7 500 m²); Oasis (GLA: ~13 200 m²); Ocean Mall (GLA: ~100 000 m²); Smart Plaza Obolon (GLA: ~12 000 m²); Rive Gauche (phase 2) (GLA: ~50 100 m²); Respublika (GLA: ~135 000 m²); Sky Mall (phase 3) (GLA: ~37 100 m²); Аprel (phase 2) (GLA: ~30 000 m²).
7 Mid-Year Report | 2018 | Ukraine | Colliers International CONSUMER SENTIMENT INDEX DEMAND Consumer Demand According to the State Statistics of Ukraine, in the first quarter of 2018 the real income of the general population grew by 10%, compared to the same period of 2017, while the retail sales grew by 6.1% for January-May 2018. According to GfK Ukraine, in June the Consumer Sentiment Index increased by 2.7 points compared to May 2018, while in the past year it grew by 6.2 points, amounting to 65.6p.
Tenant Demand Source : Colliers International In the first half of 2018 tenants’demand for retail space in Kyiv was moderate. As usual, in the first half of the year, fashion operators PRIME RENTS were actively expanding their presence. The following new operators should be mentioned separately: Koton, DeFacto, Zara Home, All Saints, Penny Black, Livly, Hugo. Brand Origin SC/SEC GLA, m² Koton Turkish Lavina Mall 1 550 DeFacto Turkish Globus 1 200 Zara Home Spanish Gulliver 550 All saints UK Ocean Plaza 150 Hugo Germany Sky Mall 148 Penny black Italy Ocean Plaza 77 Livly Sweden Gulliver 70
RENTAL RATES AND VACANCY Source: Colliers International At the beginning of July 2018 the highest rental rates in the 100- 200 m² segment in Kyiv’s top shopping centers were at $72/m²/month. Prime rental rates for the 100-200 m² lots on the VACANCY,% main shopping streets were at $83/m²/month. At the end of the second quarter of 2018 the total vacancy rate in SCs/SECs of Kyiv increased by 0.5% amounting to 5.3% compared to the 1st quarter of 2018.
FORECAST About 658 000 m² of new retail space in SCs/SECs are scheduled for completion in 2018-2019, which may considerably increase supply of retail space in Kyiv. Many scheduled projects are in progress, which shows once again the attractiveness of the retail segment for developers.
If the economy remains stable, the rental rates are expected to Source: Colliers International grow. If however all scheduled projects are commissioned while the economic situation deteriorates, rental rates may drop, first and foremost, in less successful projects. The most significant brands which have announced their launches in the second half of 2018 are H&M and Decathlon.
8 Mid-Year Report | 2018 | Ukraine | Colliers International Major Completed and Pipeline Retail Projects, Kyiv
Year of № Name Аddress GBA, m² GLA, m² commissioning Major Completed Shopping Centers 1 Poliarnyi 2 Mayorova St. 12 400 8 600 2012, 2013 2 Karavan 12 Luhova St. 57 600 45 300 2004, 2006, 2008 3 Dream Town 1b Obolonskyi Ave. 167 000 90 000 2009 4 Metropolis 12 Malynovskoho St. 30 000 15 000 2004 Central Department 5 2 B. Khmelnytskoho St. 38 780 23 500 1961, 2016 Store(TSUM) 6 Gorodok (phase 1-2) 23 Moskovskyi Ave. 12 000 34 000 2003, 2016 7 Makros 16b Moskovskyi Ave. 12 000 8 500 2004 8 Plazma 12 Moskovskyi Ave. 30 000 8 800 2006 9 Blockbuster 34v Moskovskyi Ave. 33 000 26 800 2008 10 Promenada Center 18 Ovrutska St. 42 000 30 000 2004 11 Kvadrat on Lukianivka 1 Melnykova St. 9 000 6 200 2002 12 4Room 6 Velyka Kiltseva St. 40 000 21 000 2009 13 Promenada Park 4 Velyka Kiltseva St. 60 000 43 000 2009 14 Kvadrat on Borshchahivka 29 Hnata Yury St. 15 000 11 800 2003 15 Bolshevik 6 Hetmana St. 90 000 40 000 2006 16 Arkadia on Borshchahivska 154 Borshchahivska St. 27 000 15 800 2007 17 Europort 15а Lukashevycha St. 13 000 6 000 2003 18 Ukraina 3 Peremohy Ave. 38 000 24 000 2003 19 Globus (phase 1) Maidan Nezalezhnosti 16 500 9 000 2001 20 Globus (phase 2-3) Maidan Nezalezhnosti 16 000 9 600 2002 21 Mandarin Plaza 4 Baseina St. 18 100 7 500 2003 22 Metrograd Velyka Vasylkivska St. 18 000 10 000 2001 23 Ocean Plaza 176 Antonovycha St. 154 000 72 200 2012 24 Araks 110 Velyka Kiltseva 30 000 16 000 2009 25 Magelan 13b Hlushkova Ave. 28 000 22 400 2004
9 Mid-Year Report | 2018 | Ukraine | Colliers International Year of № Name Аddress GBA, m² GLA, m² commissioning 26 Domosphera 101 Stolychne Highway 30 500 22 300 2009 27 RayON 4 Lavrukhina St. 66 000 24 000 2012 28 Global UA 2а Balzaka St. 9 000 7 500 2006 29 Sky Mall 2 Henerala Vatutina Ave. 97 000 67 000 2007 30 Kvadrat on Perova 36 Perova Blvd. 40 700 19 100 2008 31 Komod 4 Lunacharskoho St. 14 000 10 000 2007 32 Dytiachyi Svit 3 Malyshko St. 20 000 11 700 1980 33 Darnytsia 1 Myru Ave. 12 000 6 000 2008 34 Arkadia on Dniprovska Nab. 33 Dniprovska Naberezhna 33 000 18 400 2008 35 InSilver 3 Sribnokilska St. 12 800 10 000 2011 36 Aladdin 3а Hryshka St. 16 000 10 200 2004 37 Piramida 4а Mishuhi St. 16 000 12 000 2004 38 Marmelad (phase 1) 154 Borshchahivska St. – 23 350 2013 39 Gulliver 1 Sportyvna Sq. 63 000 45 000 2013 Khodosivka village, 40 Manufactura 25 000 15 000 2013 Novoobukhivkse Highway 41 Art Mall 37 Zabolotnoho St. 50 000 35 500 2013 Dniprovska Naberezhna / 42 Silver Breeze 22 000 16 000 2013 Tychyny St. 43 Atmosfera 103 Stolychne Highway 38 000 30 000 2014 Chervonotkatska St./ 44 Prospekt 75 000 41 400 2014 Chervonohvardiiska St. 45 Aprel 19a Lesia Kurbasa Ave. 6 900 5 800 2014 46 Doma Center 40 Budivelnykiv St. 10 000 8 000 2014 47 Epicentr 20D Poliarna St. 105 000 70 000 2014 48 Novus 7G Zdolbunivska St. 19 830 13 560 2015 49 New Way A. Verbytskoho St. 20 700 17 000 2016 50 Lavina Mall 6 Berkovetska St. 170 280 115 000 2016 51 Academ City 16 Ak. Palladina St. 11 000 8 000 2017 52 Smart Plaza Ave. Victory, 24-26 25 000 15 000 2018 Zbolbunivska St./ 53 Rive Gauche (1 phase) 30 000 20 000 2018 Dragomanova St 54 Retail Park (Petrivka) S. Bandera, 15 12 000 11 000 2018
Major Shopping Centers due to Complete in 2018-2020 № Name Аddress GBA, m² GLA, m² 1 River Mall 10-14 Dniprovska Naberezhna 140 000 55 000 2 RETROVILLE Pravdy Ave. 116 000 80 700 3 Ocean Mall Lybidska Square 150 000 100 000 4 Smart Plaza (Obolon) 21 Tymoshenka St. 16 000 12 000 5 Blockbuster Mall Bandery Ave. 245 000 142 000 6 Respublika 1 Velyka Kiltseva St. 298 000 135 000 7 Sky Mall (3rd phase) 2 Henerala Vatutina Ave. 51 450 37 100 Zbolbunivska St./ 8 Rive Gauche (2 phase) 120 000 51 900 Dragomanova St. 9 Good Life Pecersky district 10 000 7 500 10 Aprel(2 phase) 19 A, L.Kurbasa Ave. 30 000 24 000 intersection of Obolonsky 11 Oasis Prospect and Heroes of the 14 500 13 200 Dnieper St. Total 1 257 950 658 400
10 Mid-Year Report | 2018 | Ukraine | Colliers International
KEY TRENDS HOTEL MARKET
RATE JUNE 2018 SUMMARY Total room stock of different 10 300 The commissioning of three hotels with the total room stock of 625 categories The occupancy rate in hotels rooms marked the first half of 2018. 50% the 4* and 5* category** The Kyiv hotel market shows more and more positive trends: €150 ADR** for hotels 5* occupancy rates and ADR are growing.
The influx of foreign guests to Ukraine has increased as well. ** Excluding hotels, entered the market in Kyiv About 300 000 foreigners visited Ukraine during the match. In Source: Colliers International general, the Kyiv City State Administration expects that approximately 6 mln. tourists will visit Ukraine in 2018. TOTAL HOTEL ROOM SUPPLY, KYIV SUPPLY Kyiv hotel market consists of approximately 102* hotels of different categories with a total room stock of about 10 300 rooms.
In the first half of 2018, 3 medium-price hotels - Aloft Kyiv, run by Sheraton Hotels & Resorts, as well as the Ibis Station Hotel and BURSA were opened.
*Does not include the hotels with a total room stock of less 20 rooms.
Source: Colliers International
MAIN HOTELS, OPENED IN FIRST HALF OF 2018 , KYIV
Number of № Name Address Сategory Operator rooms Starwood hotels 1 Aloft Kyiv 17 Esplanadnaya St. 4 312 and resorts 2 Ibis Kyiv Station 6 Polzunova St. 3 280 Accor Hotels 11 Konstantinovskaya St. Private 3 BURSA 33 management Total 625 Source: Colliers International
11 Mid-Year Report | 2018 | Ukraine | Colliers International HOTEL ROOM OFFER BY CATEGORY As of the end of June 2018 , there are ~ 30 4-5 star hotels in Kyiv, ~ 47 3-star hotels and about 21 2-1 star hotels. 3-star hotels make up approximately 41% of the total rooms stock. Currently, there are 11 high- and medium-priced hotels that are run by international hotel operators.
DEMAND
The flow of foreign guests to Ukraine has increased. In the light of the 2018 UEFA Champions League Final the expectations of hoteliers were satisfied. The hotels, accommodating official delegations, were fully booked for the duration of the championship at the rates announced a year before the event (the rates were increased two-fold on average). The hotels which increased their rates up to five times were not fully booked, and were offering
rooms at more reasonable prices for the duration of the Source: Colliers International championship. About 300 000 foreigners visited Ukraine during the match. In THE OCCUPACY RATE HOTELS MANAGED BY PROFESSIONAL OPERATION IN KYIV general, the Kyiv City State Administration expects that approximately 6 mln. tourists will visit Ukraine in 2018. CATEGORY %
5* 45-50%
4* 50-58% OPERATIONAL PERFORMANCE OF HOTELS
3* 55-60%
Compared to 2017, the occupancy rates in 5-star hotels did not Source: Colliers International change (45-50%), while ADR in foreign currency increased by 15% and amounted to approximately 150 Euro.
THE AVERAGE DAILY ROOM RATE (ADR), KYIV The occupancy rate in themiddle segment hotels increased by 5%: up to 50-58% for 4 star hotel and up to 55-60% for 3 star hotels, but CATEGORY ADR, € ADR did not grow and amounted to 85-90 € and 45-50 € 5* ~ 150 respectively (for high quality hotels).
4* ~ 85 FORECAST 3* ~ 45 Riviera Boutique Hotel is scheduled for opening after the BSource: Colliers International reconstruction in the first half of 2018. CITYHOTEL (an additional edifice) is scheduled for commissioning at the end of 2018 (the date THE AVERAGE PRICE FOR «STANDART ROOM», € of commissioning has been postponed since 2016). The presumably stable political situation in the country and positive trends in the economy slightly boosted the tourist flow to Ukraine. International operators show interest in Kyiv medium-priced market. Developers are planning to build hotels. But the commissioning of Park Inn, Aloft Hotel, Ibis compensated the lack of high quality middle segment hotels. The average occupancy rates of hotels (50-60%) does not mean that the market will be able to absorb such amount of the commissioned facilities. The return period for hotels is the longest one. It is too early to say whether hotel projects will bring real profits until the real revenues per room in foreign currency have reached the indicators of 2014. * During Champion League room prices were overpriced, the price analysis was conducted without taking into account this changes. Today the market is not yet ready to absorb new facilities. Source: Colliers International
12 Mid-Year Report | 2018 | Ukraine | Colliers International The main registered hotels and announced projects of hotel real estate, Kyiv
№ Name Addres Numbers of Category rooms 1 InterContinental Kyiv 2a, Velyka Zhytomyrska St. 272 5 2 Hyatt Regency Kyiv 5, Tarasovoi St. 234 5 3 Premier Palace Hotel 5-7/29, Shevchenka Blvd. 288 5 4 Opera Hotel 53, B. Khmelnytskoho St. 137 5 5 1а, Naberezhno-Khreshatytska 258 5 Fairmont Grand Hotel Kyiv St. 6 Hilton Kyiv 8-30, T. Shevchenko Blvd. 262 5 7 Radisson Blu Hotel, Kyiv 22, Yaroslaviv Val St. 255 4 8 Radisson Blu Hotel, Podil 17-19, Bratska St. 164 4 9 Holiday Inn Kyiv 100, Chervonoarmiiska St. 208 4 10 Cityhotel 34a, B. Khmelnytskoho St. 86 4 11 Alfavito 35d, Predlavianska St. 229 4 12 11 Mirrors 34a, B. Khmelnytskoho St. 49 4 13 Podol Plaza Hotel 7a, Kostiantynivska St. 57 4 14 Ramada Encore Kyiv 103, Stolychne Shose 264 4 15 «President Hotel» 12, Hospitalna St. 374 4 16 «Natsionalnyi» 5, Lypska St. 75 4 17 «Kyiv» 26/1, Hrushevskoho St. 157 4 18 City Park Hotel Kyiv 20A, Vorovskoho St. 23 4 19 Visak 17, Obolonska Naberezhna St. 43 4 20 Mercure Kyiv Congress 160 4 6, Hetmana St. (Cosmopolite) 21 Chervona Kalyna 7, Henerala Vatutina St. 32 4
13 Mid-Year Report | 2018 | Ukraine | Colliers International № Name Addres Numbers of Category room 22 Staro 34, Konstiantynivska St. 35 4 23 Vozdvyzhenskyi 60ab, Vozdvyzhenska St. 26 4 24 Park Hotel Holosievo 87, Holosiivskyi Av. 53 4 25 City Holiday Resort & Spa 5, V. Kiltseva 62 4 26 Ukraina 4, Instytutska St. 368 4 27 Kozatskyi Stan 18 km Boryspilskoho Shose 58 4 28 Kreshchatyk 14, Kreshchatyk St. 130 4 29 Royal Olympic Hotel 12, Hospitalna St. 65 3 30 Royal Hotel De Paris (De luxe) 5, V. Vasylkivska St. 29 3 31 Royal City Hotel 13a, Dmytrievska St. 20 3 32 Amarant Hotel 71d, Konstantynivska St. 46 3 33 Royal Grand Hotel 31/27, B. Khmelnytskoho 44 3 34 Ambassador Plaza 5/1, M. Hrechko St. 44 3 35 Bontiak Hotel 5/24, Iryninska St. 35 3 36 «Bratyslava» 1, Malyshko St. 337 3 37 Premier Hotel Lybid 1, Peremohy Sq. 273 3 38 «Turyst» 2, R. Okypnoi St. 377 3 39 «Dnipro» 1/2, Khreschatyk St. 186 3 40 Domus Hotel 19, Yaroslavska St. 30 3 41 Pushcha Congress Hotel 20, N. Yunkerovycha St. 169 3 42 Adria 2, R. Okypnoi St. 63 3 43 «Gintama» 9, Tryohsviatytelska St, 23 3 44 Premier Hotel Rus 4, Hospitalna St. 451 3 45 Air City Hotel 32, Molodohvardiyska St. 118 3 46 «Myslyvskyi Dvir» 50, Slavhorodska St. 28 3 47 «Оberih» 25/16, Chervonozorianyi Av. 58 3 48 Ibis Kyiv City Center 25, Shevchenko Blvd. 212 3 49 Nyvky Plaza 5, M. Hrechko St. 23 3 50 7 Days 4, Heroiv Kosmosu St. 38 3 51 Express Hotel 38/40, Shevchenko Blvd. 143 3 52 «Bakkara» 1, Venetsyanskyi Ireland 182 3 53 «Bohdan Khmelnytskyi» Naberezhno Khreschatytska St. 30 3 54 West Park Hotel 24G, Pushkina St. 27 3 55 «Salut» 11b, I. Mazepy St. 88 3 56 «Мyr» 70, Holosiivskyi 138 3 57 Raziotel Yamska 52, Yamska St. 78 3 58 Vita Park Borysfen 5, Park Druzhby Narodiv St. 64 3 59 «Cooperator» 53/80, Saksahanskoho St. 92 3 60 «Druzhba» 5, Druzhby Narodiv Av. 55 3 61 Kyiv 365 1, Mala Okruzhna St. 63 3 62 Nyvky Plaza 5, M. Hrechko St. 23 3 63 Impressa 21, Sahaidachnoho St. 18 3 64 Park Inn Radisson 55 A, V.Vasylkivska 196 3 65 Dzherelo Observatorna 17 3 66 Ekateryna Velikaya 51/1 Vyzhhorodska St. 20 3 67 Aloft 17 , Esplanadnaya St. 312 4 68 ibis Киев Вокзал 6, Polzunova, St 350 3 Major Hotels due to Complete in 2018-2019, Kyiv 1 Riviera Boutique Hotel* 15, Sahaidachnoho St. 67 4 2 City Hotel (2 очередь) 56b, B. Khmelnytskoho St. 50 4
14 Mid-Year Report | 2018 | Ukraine | Colliers International
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The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the 15material Mid contained-Year Reportin this report. | 2018 | Ukraine | Colliers International Chapter