What has been happening in Ukraine’s hotel real estate market during the war?

The rate of new hotel construction in Ukraine is higher today than in the pre-war years, but this activity is observed in only a few regions. The Ukrainian Association of Hotels and Resorts (UHRA) noted that the market has stabilized despite significant losses.

However, tourism is present only in three or four regions: the west and south of Ukraine and the Kyiv region. The hotel industry is trying to quickly adapt to domestic tourism, forcing developers to look for new formats, including resorts.

Today, “80% of the projects being built are resort hotels. There were few such facilities in Ukraine before the war because Ukrainians usually prefer to vacation abroad,” experts say.

Now, business hotels are developing slowly or have been frozen until better times arrive. Another trend is the emphasis on medical treatment. As of April 2024, about 40 facilities are under construction in Ukraine, mainly in the western regions of Ukraine. This year, ten new objects are being prepared for delivery, most of which are apartment hotels (income real estate).