UKRAINE'S HOTEL INDUSTRY AMID FULL-SCALE WAR: FROM CRISIS TO ADAPTATION AND CAUTIOUS RECOVERY

Abstract

The article examines the adaptation processes and recovery trends of Ukraine's hotel industry under conditions of full-scale war that began on 24 February 2022. The industry, which previously contributed approximately 2.1 % of GDP, faced a systemic crisis caused by infrastructure destruction, a sharp decline in tourist flows, and a shift in demand geography. The key directions of business model transformation among hotel enterprises are identified: investments in security and operational autonomy (construction of shelters, backup power supply, autonomous water systems), service diversification, reorientation towards the domestic market, introduction of hybrid formats (coworking spaces, apart-hotels, long-term accommodation), and flexible pricing and marketing strategies including loyalty programmes and dynamic pricing, which according to global experience can increase revenues by 10–20%. The transformation of hotels' social functions is characterised – their role in housing internally displaced persons (up to 70% of the client base in the first months of the invasion), supporting volunteer activities, and facilitating humanitarian missions. Specific examples of corporate social responsibility by major operators are provided: «Bankhotel», «Ribas Hotels Group», and «Premier Hotels & Resorts» (charitable aid exceeding UAH 5 million in 2022). Signs of cautious sectoral recovery from 2023 onwards are analysed, including a 23% growth in tourist levy revenues in 2024 (reaching UAH 273 million), exceeding pre-war 2021 figures by 51.65%, an increase of 96 collective accommodation facilities, and activation of investment projects. Regional differentiation of recovery is shown, with the Kyiv region, Lviv and Ivano-Frankivsk oblasts leading. Structural market shifts towards apart-hotels, cottage complexes, and medical-wellness facilities are examined. The activities of leading international («Accor», «Radisson») and national («Optima Hotels», «Ribas Hotels», «Premier Hotels & Resorts») hotel operators are characterised. The prospects and challenges of Ukraine's post-war hotel industry development are outlined, including the need to expand accommodation capacity by at least one-third to receive a projected flow of 14.5 million visitors and to improve categorisation standards.