Ukraine now has more hotels than it did at the beginning of the war with Russia that started in 2022, and its domestic hotel industry’s net revenue jumped sevenfold over the past five years.
Unprecedented security costs, however, have tempered that business profitability.
Ukraine’s hotel industry generated 53.5 billion Ukrainian hryvnia ($1.18 billion) in revenue in 2025, up sharply from UAH8.2 billion in 2022, according to business advisory RBC-Ukraine.
Despite the loss of territory and the closure of many hotels in frontline regions, the number of branded hotels operating in Ukraine has surpassed pre-war levels.
As of early 2026, Ukraine had approximately 2,854 branded hotels, up from 2,534 before start of the conflict.
Tax revenues also point to the sector’s recovery.
In 2025, Ukraine’s hospitality industry contributed UAH 4.4 billion to the state budget, twice as much as in the previous year, RBC added.
Anastasia Oceretnuk, head of public relations at Ribas Hotels Group, which operates 28 hotels and more than 1,000 rooms across the country, said the recovery of Ukraine’s hospitality industry is stronger than expected in some segments.
“The summer season of 2026 will be record-breaking for domestic tourism," she said.
During the peak months of July and August, Ribas’ team expected occupancy rates of between 87% and 92% on weekends in its hotels in the region of Transcarpathia and between 78% and 83% in the Lviv region, she said.
Even in southern regions where security concerns are at their highest, there have been positive developments.
“The Odessa region has also gained momentum, with inquiries increasing by 14% compared to last year,” Oceretnuk said.
In Kyiv, positivity is less pronounced, although its hoteliers are seeing key performance indicators improve.
“Our occupancy remains below the level we achieved before the full-scale invasion in 2021,” said Dmytro Klepach, director of sales and marketing at the 272-room InterContinental Kyiv, “[but] compared with 2023, we have seen a steady recovery as business and international organizations have gradually adapted to operating in Ukraine again.”
Competitive advantage
Security is a big selling point for Ukrainian hotels, sources said, especially in the capital Kyiv.
Klepach said approximately a third of bookings at his hotel are from meeting and events groups, the planners of which are very conscious of safety.
He said the hotel has two large event halls underground that also serve as certified shelter spaces.
“This allows conferences, diplomatic meetings and corporate events to continue safely without interruption during air raid alerts,” he added.
While occupancy has not yet returned to pre-war levels, Klepach said his hotel’s total hotel revenue in euro terms is now close to that of 2021, supported by improved room rates and a stronger business market.
Oleksandra Haharina, deputy general director of the 166-room Premier Hotel Dnister in Lviv, agreed safety has become one of the key factors, both for corporate clients and leisure guests.
The security situation has seen international group tourism disappear, Haharina said.
“Today, this segment is almost nonexistent,” Haharina said. “Instead, demand is mainly generated by corporate clients, conferences, business events and other meetings, incentives, conventions and expositions activities.”
She added MICE business accounts for approximately 68% of her hotel’s occupancy, helped by the 2022 openings of two new Lviv conference halls.
Those two facilities are also below ground, Haharina said.
Recovery price tag
Despite these positive shifts, many Ukrainian hotels still show negative margins, RBC-Ukraine reports.
The key reasons are the rising costs of hiring and retaining staff and investing in diesel generators and solar power.
“The biggest challenge is undoubtedly the labor market,” Klepach said, who added many hospitality professionals have left the country or are serving in the country’s armed forces.
A recent law allowing young Ukrainians to “temporarily” move abroad has removed from the industry its core workforce age category.
Due to population relocation, mobilization and migration, businesses are experiencing a lack of qualified personnel at nearly every operational level, from housekeeping and technical staff to middle-management positions, Ribas’ Oceretnuk said.
“As a result, hotels are increasingly investing in employee training, internal development programs and automation,” she said.
Energy also is adding significantly to costs, according to RBC data, which said having a back-up power supply adds between 15% to 25% to a hotel’s operational costs.
Due to Russian strikes, such costs are unavoidable for Ukrainian hotels, Haharina said.
Looking beyond war
Despite wartime challenges, hoteliers believe the sector remains attractive for investors, with projects continuing to emerge even amid uncertainty.
Lviv has become one of the best examples.
“Since 2022, eight new hotels with a total of 443 rooms have been opened in the city, and two more hotels with a combined room inventory of 290 rooms are expected to open in 2026,” Haharina said.
Similar confidence is seen in Kyiv, where industry players believe that the hotels capable of adapting to wartime conditions will be well-positioned for future growth.
Overall, Ukraine’s hospitality industry continues to present attractive long-term investment opportunities, Klepach agreed.
“Hotels that are flexible, invest in safety, maintain international quality standards and adapt to changing market conditions have demonstrated remarkable resilience throughout the war. Once security conditions improve, the sector has strong potential for further growth,” he said.
Investors are becoming more selective, with their focus increasingly shifting from simply expanding room capacity to developing projects with stronger concepts, professional management and long-term potential, Oceretnuk said.
“As a result, the market is gradually shifting from quantitative growth to qualitative development. The strongest opportunities lie in projects that combine a compelling concept, high service standards and a sustainable long-term development strategy,” she said.