Real Estate in Ukraine | News & Statistic | Hotels & Restaurant - Proriat

Buying or Selling Hotels in Ukraine. Hospitality Real Estate for Sale

kyryll ushakov — Sun, 30 Oct 2022 14:15:42 +0000

Hotel real estate in Ukraine is actively gaining popularity among many investors. In addition to investing in apartments for further transfer to the management of the hotel operator, investors are considering the investment opportunities of buying a hotel. And here many questions arise, how profitable will the purchase of an existing hotel or hospitality real estate be for the development of the hotel business. This article is devoted to the topic of buying and selling a hotel in Ukraine.

Hotel partner in Ukraine

Proriat Hospitality Partners – investment management company specialising in the hotel and restaurant sectors. We provide comprehensive services in hotel management, sale and purchase of a turnkey hotel. Also, our company is regularly looking for large commercial facilities with the possibility of implementing hotel projects. We invest in the development of hotels. Opening hotels and providing comprehensive management solutions to ensure all our hospitality projects are running at the best and maximum profit.

Our hotel opening and management services, learn more starting a hotel business in Ukraine

Buying a hotel in Ukraine: a comprehensive audit and financial analysis

Where to start buying an established hotel in Ukraine? Of course, the main elements in the transaction will be: hotel property valuation, brand positioning, competition, management and financial analysis.

Valuation and analysis of hotel real estate

Hotel real estate is a valuable and liquid investment tool that should be assessed before buying a hotel business in Ukraine. We must understand how much investment will be required to renovate the room and guest areas. Or how long the hotel can operate without any refinance or reinvestment. This is an important point, since we’re buying commercial real estate, and such properties have its own terms when it is necessary to carry out major repairs.

Hotel brand

A brand in the hotel industry is a combination of many marketing elements that provide company recognition and value, creating a portrait of your targeted guest, and can define the pricing strategy for hotel services. If the value of the hotel brand is put into the sale of the hotel or offered as a tyrn-key hotel business in Ukraine. Then, it is worth paying attention to many marketing elements. The main ones are the number of regular and loyal guests, marketing and sales department, digital resources (website, phone application, integration with booking services, cooperation with tour operators, etc.)

The study of hotel competition in Ukraine

Competition in the hotel industry in Ukraine is determined through the study of many information resources. In general, this is a quick and easy process that will help you understand which hotels will be the main struggle for a guest, and how many reservations you can count on.

Hotel management in Ukraine

Management in the hotel industry is a complex and team work of all departments to achieve maximum results using a minimum amount of resources. Often, many problems lie precisely in the inefficient or incompetent management of the hotel. As a result, we have a low level of hotel occupancy, which means problems with its profitability. This should not particularly affect the decision to purchase a hotel, since for this it will be possible to involve a hotel operator or a hospitality management company. See our catalog Hotel operators

The financial analysis

How to make a financial analysis of a hotel? To do this, you need to study the following key indicators from the financial activities of the hotel. Namely, the number of rooms (number of kyes), the percentage of room occupancy (occupancy rate), the average daily room rate (ADR – average daily rate) Financial reports, this is one of the most important indicators that should not be ignored if you are going to buy a hotel in Ukraine.

An example of financial indicators to evaluate before buying a hotel or hospitality business

Rooms (Kyes): 150
Occupancy rate: 70%
Average room rate: $100

Next, we need to determine the number of available rooms in a calendar year.
150*365 = 54.740 numbers available for sale during the year.

Average annual revenue in hotels or Gross Income. Considering an average occupancy rate of 70% and 54,750 available rooms at a price of $100.
54.750/70%*$100 = $3.832.500 turnover per year.

Net Income (NOI) in a successful hotel business averages 25% – 30%
If we take a net profit of 27%, then we get $1.034.175 per year. This is the main financial indicator that helps us understand whether it is worth considering buying a hotel in Ukraine or not and what the average return on investment will be.

If you are looking to invest in hotel real estate or want to buy a hotel in Ukraine, then our experts will be happy to provide you with the right hospitality property or turnkey hotel business for you.

Current hotel and hospitality real estate as well as turnkey restaurant business in Ukraine you can find in our catalog Proriat Real Estate

Hotel for sale in Ukraine

Selling a hotel as an existing hospitality business in Ukraine can be a daunting task. As practice shows, assets worth more than $1,000,000 can be sold from six to twelve months. Here you must determine for yourself whether you will be selling the hotel yourself or it is better to involve a brokerage company that will search for a buyer for your hotel property or hospitality business.

Proriat Real Estate is a brokerage company in Ukraine that specialises in the sale and rental of hotel and restaurant real estate. Commercial real estate experts will help you create a selling commercial offer to quickly sell a hotel or hospitality, commercial property.

Independently sell a hotel, restaurant or turnkey business in Ukraine

First, you will need to create a photo and video presentation of the hotel.
Choose a strategy for selling the hotel and options for attracting potential buyers or investors.
Determine your advertising budget
Prepare a detailed description of a selling hotel: total area of the property and adjacent land, number of rooms, tangible and intangible assets, etc.
Purchase board placement packages and upload your hotel offer. Do not forget to regularly update hotel sales ads so that it is always on the first pages.
Contact an advertising agency to set up targeted advertising for you on Google, Facebook, Instagram.
It will not be superfluous to purchase a separate phone number, on which it will be convenient to contact you for a hotel showing or provide additional information.
You need to be prepared in the first few days for a lot of calls from real estate agencies.
Determine the days and times for meetings and showing the hotel to buyers and investors.

Thanks to a modern information solution, a hotel owner can sell a hotel or hospitality property in Ukraine on their own without involving brokers. Although, many hoteliers and large businesses prefer to work with brokerage companies. Because they understand that selling a hotel business in Ukraine can take a long time. And for many of our clients, time is the most valuable resource.

If you are planning to buy or sell a hotel in Ukraine and considering investing in hotel real estate, then Proriat Real Estate and Proriat Hospitality Partners will be a valuable partner for you in purchasing a hotel business, providing an effective it management.

The next step

Visit contact page to get in touch with us.

The post Buying or Selling Hotels in Ukraine. Hospitality Real Estate for Sale appeared first on Proriat Hospitality Partners.

Buy & Sell a restaurant, business, bar or cafe in Ukraine. Pros & Cons

kyryll ushakov — Wed, 26 Oct 2022 11:52:53 +0000

Buying a restaurant has been gaining popularity in recent years. While some restaurateurs are selling their restaurant business, others are actively looking for opportunities to invest in promising projects. Also, many restaurateurs in pursuit of a good location often consider buying an existing restaurant in order to further develop a working concept or rebrand and open a new gastronomic cafe.

How do novice restaurateurs or entrepreneurs look at such transactions? What can be the nuances, pros and cons?

Hotel & Restaurant Experts in Ukraine

Hello dear reader, let’s get to know each other first. We are Proriat Hospitality Partners – investment management company in the hotel and restaurant industry. In this article, we would like to reveal and share a few subtleties that beginners in the restaurant industry who want to buy a business, restaurant, bar or cafe may not be aware of.

Most restaurateurs are not very fond of sharing the secrets of success in the restaurant business. After all, it is unprofitable for professionals to produce competitors. This is beneficial only for coaches who are indirectly related to business. But sometimes it hurts to look at the mistakes of beginners who ruin projects and lose huge amounts of money. And we decided to give up our principles and write this article for those who are ready to plunge headlong into the restaurant business. Or rather, for beginners who think that buying an existing restaurant in Ukraine is the easiest solutions in hospitality business.

Our hotel and restaurant experience

First, a few words about our experience and specialization. Our company is engaged in investment, development and management of hotels and restaurants in Ukraine. As a team and experts in the hotel and restaurant industry, we have devoted the last 14 years to a deep study of the hotel and restaurant market. Thus, we are well versed in all the intricacies of restaurant franchising, hospitality and commercial real estate, buying and selling restaurants and businesses. Throughout our experience in the restaurant business, we have seen many gastronomic trends. Starting from street food formats to premium restaurants with three Michelin stars. From small pubs to wine boutiques or cocktail bars with global trends in drink mixology. Today, as a management company, we create turnkey restaurants, provide effective management for existing restaurants and hotels. In our portfolio you can find both established restaurant franchises and new restaurant concepts:

The nuances of buying an existing restaurant in Ukraine

As experience shows, in most cases, less successful restaurants are put up for sale. Even if in the ad description of the sale of the restaurant, you saw an attractive amount of net profit. This is not yet a reason to buy a restaurant in an accelerated order. Often, sellers do not provide up-to-date financial reports. But this does not mean that by buying such a restaurant, you will simply lose money. Experienced restaurateurs know and can feel the potential of a restaurant project. Therefore, if you do not have such a skill in assessing the location and concept of a restaurant, then you can involve restaurant consulting experts in this matter or study all the restaurant nuances on your own. Although, such a process can take quite a lot of time. But having studied all the pitfalls of buying and selling restaurants, you will not need to involve consulting companies for help and spend your budget.

How does restaurant consulting work?

Proriat Hospitality Partners takes on unprofitable restaurants and, having completed a complete rebranding, we bring the hospitality project into an operating profit. Our experience shows that by optimizing business processes, we can free up enough resources to make conceptual changes in the restaurant.

Buying and selling restaurants in Ukraine

Our experts will help you sell a restaurant, bar or cafe. We will conduct a full analysis of the restaurant, create a commercial offer, photo and video content to attract potential investors or restaurateurs. We will conduct the required number of impressions to conclude the final transaction for the sale of the restaurant.

And if you decide to become an investor in the restaurant industry or develop your own chain and are considering options to buy a restaurant in Kyiv or other regions. Then, our company will become an indispensable partner in the selection and purchase of restaurant real estate or an operating restaurant in Ukraine.

Buying and selling an established business in Ukraine can be a long and exhausting process. But thanks to our team, you have the opportunity to transfer all the work to our experts in the sale of a ready-made business and real estate for catering. We minimize the risks in the sale or purchase of a restaurant business, and our team will develop a concept for a new turnkey restaurant.

Restaurant franchising and franchise directory

Often restaurateurs and entrepreneurs are interested in buying a restaurant franchise or want to start developing their brand through a franchise system. Actual Ukrainian franchises, startups, restaurant consulting services can be found in our franchise directory Proriat Franchise Development

Is it worth buying an existing restaurant business?

With this question, we are often asked, as a rule, by beginners in the restaurant business. Because it seems to them that buying an existing restaurant in Ukraine is the easiest and shortest way in the restaurant business. However, buying a restaurant has its own nuances and secrets. Moreover, this is a market, and in the market, as a rule, one side is selling and the other buying. If you ask an experienced restaurateur, is it worth buying an existing restaurant business? It is more likely that you will be told that no, you should not do this for a number of reasons. For example: a weak brand, an unfavorable location, an uninteresting or little-demanded product, and much more. Although there are worthy offers on the market for the sale of an established business. Keep in mind that not all restaurants can be found in public sources. Often interesting offers: buy and sale of restaurants, bars, coffee shops, cafes and hospitality properties in Ukraine are presented in closed circles for potential restaurateurs and investors.

Who sells an existing business?

Let’s analyze the following. We hammer in the search line to buy a ready-made business in Ukraine. And we are given dozens or even hundreds of proposals for a turnkey restaurant business in Kyiv, Lviv, Kharkiv, Odesa and other cities. Also, we go to the websites of real estate agencies and see that there are many offers of completely different types of business: factories, hundred, farms, warehouses, companies producing goods and much more. Real estate agents sell real estate and various types of businesses. It is clear that it is impossible to be an expert in all areas. Our company will not sell a pharmacy business or select premises for a clothing store. Proriat Hospitality Partners works exclusively in the hospitality industry in Ukraine and selects premises for restaurants, bars, cafes.

Pros of buying an existing restaurant

No matter how you are tormented by doubts about buying an existing restaurant, this deal has its advantages. If you are well versed in the restaurant industry, or you have a reliable partner who can quickly take control of all business processes. Then, the deal can be a profitable investment for you. Since, in a functioning restaurant, it is much easier and faster to assess the prospects of work and the payback period of investments. Often, it is enough for an expert in the restaurant industry to make small changes in the concept of a restaurant or in its management, so that a loss-making restaurant gets a new life and begins to generate profits for its owners.

Cons of buying a restaurant in Ukraine

Like any business, buying a restaurant in Ukraine is a big risk. Since you’re buying someone else’s idea, you need to be ready to drastically change the concept of the restaurant. Often, such a decision can entail rather big financial costs. You must have enough funds to keep the restaurant running for at least six months, even if it is unprofitable. You need to understand that in order to buy a restaurant, you must have impressive experience in the restaurant industry. As an option, you can start cooperation with a management company that will ensure the achievement of planned results. The restaurant management company will be able to conduct an in-depth analysis of the restaurant’s activities and determine the prospects for this investment.

Commercial, hotel and restaurant real estate in Ukraine

If you are looking for an existing business, a restaurant, a cafe bar, a coffee shop in Ukraine, then we invite you to our website dedicated to hotel & hospitality real estate and sale of Ukrainian businesses. Proriat Real Estate

Conclusions on the topic of buying and selling a restaurant in Ukraine

If you are new to the restaurant industry, we recommend that you think a hundred times before buying an existing restaurant, coffee shop, cafe or bar. You need to understand that just buying an existing hospitality business is not yet a guaranteed ticket that will provide you with a monthly profit. You will need to independently master many business processes in the operation of a restaurant: HR department, marketing and sales, kitchen, bar, back office, warehouse, accounting and, most importantly, build and train a hospitality result-oriented team. Only joint and well-coordinated work can create a restaurant that loves its guests and, as a result, generates the expected profit.

Our company and experts in the restaurant industry, commercial real estate and franchising will be glad to partner and work together on a new gastronomic project. If you are looking to buy an existing business in Ukraine or sell a restaurant, then we are waiting for your application and requests.

The next step

Visit contact page to get in touch with us.

The post Buy & Sell a restaurant, business, bar or cafe in Ukraine. Pros & Cons appeared first on Proriat Hospitality Partners.

How to Choose a Premise for a Restaurant. Hospitality Real Estate

kyryll ushakov — Fri, 10 Apr 2020 09:22:43 +0000

The restaurant business is developing rapidly all over the world: every month in a major city alone about 10-15 different hospitality establishments are opened and, in some months, even 30. The restaurant business is beautiful in itself, and it tends to be fashionable to be called Restaurateur. This year the trend will continue, despite the covid-19 and global quarantine which led almost all economies to close down the tourism and hospitality business.

Most restaurateurs – both experienced and beginners – as a rule, have in their minds a certain idea or a finished project. A perfect picture: such a floor area, interior design, atmosphere, service style and unique experience they will be providing to their guests.

The right location is needed for all food and beverage projects, but not every place is convenient for it. Where to look for those perfect places and how not to make a mistake when choosing the one. Kyryll Ushakov, an expert in the restaurant business and founder of Proriat Hospitality Real Estate is going to share the checklist he usually uses at his work.

Finding and selecting a space for a restaurant

The successful ROI period of your restaurant depends on the choice of location. The right location provides solid traffic of guests and stable income. Of course, when opening a restaurant, it is important to consider many other factors, but not even one of the most ingenious concepts of your business will make a decent revenue if there is no right place for it. Lease or buy premises where it’s beneficial in every sense and not where it’s just cheaper.

So where to start

In my experience, I can distinguish two fundamentally different property selection strategies.

First, from the very beginning, you need to define the concept of your restaurant. Identify what people in your market really want to have and how much they are ready to pay for that. Remember it’s all about what your potential guests’ expectations and demands are and not about what you want to offer them. Think about food and beverages you want to sell, create and do menu testing to understand if your product is liked by people you are planning to target. Determine the format of the restaurant and calculate the budget.

Make a business plan, specifying all the technical requirements and criteria. And after that, you are good to go to start the property search phase.

Second, look for an attractive lease offers on the market and create a concept based on technical capabilities of a location. The second method is not so rare and unpopular, but I’m still a fan of the first approach. Because, only with this strategy you can manage requirements and control your business in the future.

To help you, I decided to make a short list of how to choose the right location for a restaurant.

Make sure you already know what your concept is going to look like. For instance, you want to create an authentic Italian or Asian cuisine, maybe a burger house or a pub with craft beers, a coffee shop or a bakery with the best cakes in the town. Don’t forget about the format of the restaurant: fast-food, street-food, fast-casual, fine-dining etc. It is very important to decide on the menu, at least determine the categories of dishes and cooking technologies, will you cook them on the grill, fry, steam, bake or pickle. Also, here you can include the budget, the desired layout and the choice of the city district.

Next, we draw up the technical task for the premises. It should be as detailed as possible and take into account all the nuances without which it will not be possible to bring your concept into life. For example, stained-glass windows, ceilings height, a parking lot, number of ladies and gents’ rooms, electrical load factor and many other important points that are critical for the implementation of your project.

The search itself. According to the terms of reference, we begin to look for a suitable location. You can do it by seeking it in real estate social media groups, classified websites, and other relative platforms. The ideal option is to drive in the area of the city that interests you and see what places are being offered. Or contact real estate agents, but again you will need to give them all your requirements, so that they do not offer the wrong options and do not waste your time and resources.

Selecting the right location. Be sure to consider a few offers. Do not stop at the first option that partially meets your requirements. There will always be plenty to choose from. Compromise here is the most undesirable option. Study your rental agreement in detail and scrupulously. It is very important. Don’t just read it but screen every word. It is best at this stage to hire a competent lawyer who will draw your attention to all the pitfalls. For example, the place is not intended for a restaurant business. It seems the most obvious point, but at the same time, many make such a mistake. Any hidden terms and tricks from the owner of the premises that are written in small print and are veiled denial clauses. In practice, it will turn out so that he will be able to ask you to release the place at any time for any made-up reason.

Utility costs

Can either be included or excluded from the rent cost. And here it is very important to understand what exactly you are paying for. Because, there are times when, due to utilities, water and heating bills exceed a modest rental rate

Rent holiday

If they are by agreement, if so, how long do they last. Find out who was renting the place before and why the previous tenant moved out. Some places can stay empty for years, and then it’s going to be a little more difficult to find out. But if it was some kind of restaurant or café be sure to read the reviews on social networks or on TripAdvisor to understand what trace this location left behind. Although, if you have a strong brand and you know how to competently promote a restaurant, then other past failures should not bother you. However, for new restaurateurs, the notoriety of the place is still a big challenge. When you have finally decided on the premises, once again review your business plan and adjust it taking into account the criteria of the place you have chosen. Namely, highlight the real rental rate add utilities that you will pay, calculate the number of seats define traffic etc. This is necessary so that you can objectively evaluate your future business in cold-blooded and realistic manner. Once again, do not make a choice on emotions. Everything needs to be calculated. Then your venue will work stably and profitably.

And in the end, I’ll talk a little about the risks when choosing a location for a restaurant. Remember, if you open a cafe in a residential building your calm life depends on all its residents. Any complaints about loud music or a noisy grill, even if you don’t have either the first or second, will most likely result in people contacting the appropriate authorities. Make friends with everyone. You need to remember each neighbor in person and know which one is negative about your place and why and try to build friendly relations with them.

Another common problem when renting premises in residential buildings is the lack of ventilation systems. There are fabulous premises at the pleasant rental rate in a great location and with impressive people traffic, but the ventilation system is being missed or cannot be installed due to the specification of the building. My advice, do not consider such premises. It may be that you somehow install it and it will work fine, but problems will probably begin with its registration.

Finally, I’ll briefly tell you how my team and I were choosing a location for a coffee shop during our latest work on a project. We looked for it for about two months and wanted it in the downtown but not on the main street, with entrance from the end of the building, and with a nice terrace. There should have been a predefined interior design with desirable wall and floor plans. That’s why it took so much time and effort, but believe me, this is not the longest time in decision-making when you are looking for the right place. Very often the search can last up to six months or even longer. But the following coffee shops we are opening on the premises that are found and offered to us, since our brand is recognizable and generates solid traffic of people and attracting many repeat guests.

What rental price is acceptable?

Maximum 10% of total restaurant revenue is a well-known international indicator that most of the F&B projects can afford to pay to make economic sense. And if your startup cost is about 500 000$ you should have high level of expectation that the restaurant in this location will be capable of generating annual sales of at least from 600 000$ to 750 00$

Let’s summarize

Search and selection of premises for a restaurant are time-consuming and at the same time, it’s one of the most important stages. You have to use analytical and intuitive methods to identify the potential of profitability of the place you want to build a new restaurant on. Of course, there many other factors and tips a new restaurateur has to consider and be aware of as they may vary from place to place.

For more than 10 years Proriat Hospitality Partners is developing its own efficient strategy helping to find the best commercial locations, minimizing any possible risk, saving time and resources.

Our team of international real estate experts is available to your inquiries at any time.

We are looking forward to starting the work on your new project.

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