Investors withdraw from financing Euro-2012 hotels

2009-02-11



Plans to build the new hotels required for Euro-2012 may stall due to the reluctance of investors to continue investing in the hotel sector – an investment that is typically low yielding. To rectify this situation, the Cabinet of Ministers will provide funding via credit loans from the International Monetary Fund IMF and the European Bank for Reconstruction and Development EBRD. The Cabinet will release the funding once UEFA confirms the four host cities, a process which will be completed by May this year.
The development plan for Euro-2012 includes 143 new hotels to be built in Ukraine, of which 54 will be graded as five-star, 67 as four-star and 22 hotels as three-star. According to Kommersant Ukraina, only 15 hotels are currently being built while 136 hotels have yet to be upgraded. In order to comply with the requirements for hosting the championship, Ukraine must be able to offer 2,820 rooms in four- and five-star hotels, 3,000 rooms in two- and three-star hotels and approximately 200,000 rooms in hostels.