Odesa’s hotel market can become stable and profitable. What is needed for this
14 April 12:49
Odesa hotels showed growth in 2024, but this result was mainly due to the summer season. This is stated in the latest study by the Hotel Matrix project, which deals with hotel analytics, Komersant ukrainskyi reports.
According to project experts, the positive trend indicates a recovery in demand, but there are important points that should not be ignored.
What were the key performance indicators of Odesa hotels in 2024?
1. Occupancy is the first of the three hotel KPIs, which shows the percentage of rooms sold in relation to those available for sale for a certain period. In 2024, it amounted to 34%, up from 26% in 2023, plus 8%.
2. ADR (average daily rate) is another important indicator that provides information about the pricing policy applied by the hotel. In 2024, it reached UAH 2177, up from UAH 1987 in 2023, plus 9.5%.
3. RevPAR (revenue per available room) is one of the most common financial indicators that helps to assess how effective a hotel’s operations are. Last year, this income amounted to UAH 759, up from UAH 522 in 2023, plus 45.4%.
What do the following indicators indicate
First, the growth of occupancy in the summer months was the main driver of changes in 2024. However, compared to other regions, Odesa still remains at a low level of occupancy in the off-season months.
Secondly, ADR (average daily rate) is growing by 9.5%, but this is not enough to compensate for the shortfall in revenue during the low season. According to experts, the summer months showed significant demand, but prices were not increased in line with demand, which led to a loss of potential revenue.
Thirdly, RevPar (revenue per available room) continues to grow due to the summer peak, but without a proper increase in tariffs during this period, profits do not correspond to the level of occupancy and this reduces the effectiveness of the pricing strategy.
What are the conclusions of the Hotel Matrix project experts?
In 2024, hotels in Odesa recovered in demand, but only seasonal trends determine their performance. The greatest potential lies in increasing ADR (average daily rate) in the summer months to adapt to changing demand and ensure increased profits.
According to experts, Odesa has every chance to become not just a seasonal destination, but a stable and profitable hotel market. The key task is to increase tariffs and implement a more flexible demand management strategy for the whole year.
What is known about the Hotel Matrix project
Hotel Matrix is an online tool for analyzing the hotel business developed by experts from Poland and Ukraine. It allows you to analyze the market, compare the performance of a particular hotel with that of competitors, and, based on the data obtained, determine the development strategy for the hotel in question. In other words, the service’s data helps hoteliers understand how efficiently their hotel is operating.
Hotel Matrix was founded by three Ukrainian investors involved in the hotel business. The project was launched in May 2020, and currently 200 hotels are connected to it.
Earlier, Hotel Matrix analysts have already researched the Kyiv hotel market, assessed the state of affairs in the Lviv hotel industry, and expressed their vision of the development of the Bukovel hotel market.
How the hotel market in Ukraine is developing
There are 3017 registered companies in Ukraine that are engaged in the hotel business and other temporary accommodation options, and this type of activity is their main one. These are the data of the market analysis service Vkursi Market BI, according to Forbes Ukraine.
In 2022, the industry’s revenue amounted to UAH 8.2 billion. In 2023, it grew by 86% to UAH 15.3 billion. In three years, from 2022 to 2024, the revenue of the Ukrainian hotel industry grew 5.4 times to UAH 44.4 billion.
in 2024, the 30 most profitable participants in the Ukrainian hotel market earned UAH 8.5 billion, with Parktur LLC, the operator of the Bukovel resort, leading the way with revenues of over UAH 1 billion.
In 2024, the largest revenues were generated by Kyiv hotels. In total, they received UAH 28.1 billion. Business activity and business events are concentrated in Kyiv.
Next is Ivano-Frankivsk region, where a large number of recreational locations are concentrated. Hotels in this region generated UAH 5.1 billion in revenue.
Hotels in Lviv region earned UAH 4.9 billion, Zakarpattia region – UAH 1.3 billion, and Odesa region – UAH 939 million.
