How has the profitability of Ukrainian hotel rooms changed over the year?

According to EY analysis, in the first quarter of 2025 all major tourist and business regions in Ukraine saw an increase in the average profitability per room. This growth resulted from several factors: higher demand for hotels, increased domestic tourism, and a rise in the average daily rate (ADR).

Hotels in Bukovel (Ivano-Frankivsk region) have traditionally shown the highest profitability indicators. The average room rate rose to $183 (+29% compared to the first quarter of last year), despite a slight decrease in occupancy. As a result, the average hotel room profit (RevPar) in Bukovel grew by 27% to $109, in Lviv by 23% to $35, and in Kyiv by 14% to $24.

According to a study by Ribas Invest and Ribas Hotels Group, investing in hotel apartments – which typically return investment in 8-10 years (10-12.5% per year) – is more profitable than investing in housing. This is because the average payback period for an apartment in Kyiv is 12.6 years, equal to a 7.9% annual return.