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Press Releases


Hotel Industry Franchising: Innovation in Ukraine’s 2* Hotel Market

Hotel management company Premier International along with the Baker and McKenzie law firm and UniCredit Bank recently held a presentation entitled “Franchising – A new level in hotel development in terms of competition. Developing a hotel project under the 2-star brand Compass Hotels”.

With current market trends contributing to the development of the budget hotel segment (2 to 3 stars) in Ukraine, Ms. Irina Sedletskaya (CEO, Premier International) has begun offering owners of such hotels an opportunity to become franchisees under the Compass Hotels brand. Her presentation covered such practical issues as applying franchising schemes, the protocol for implementing the brand’s operational standards, the criteria for success as part of a branded chain, plus advantages and disadvantages of franchising as compared to other forms of cooperation in a chain.

In his turn, Mr. Maksim Sokiran (counselor, Baker and McKenzie) spoke on the implementation of a franchise model as well as legal formalities based on his company’s experience in supporting such deals across the CIS.

Finally, Ms. Anastasia Kaminskaya (project supervisor, UniCredit Bank) presented details on opportunities for obtaining loans to develop a hotel investment project (construction/reconstruction) under a franchisee agreement, noting that as regards loan financing of franchising projects, banks tend to take a positive view on such plans, regarding them as less risky, mainly owing to the experience and reputation of the franchiser.