EXPERIENCE OF INNOVATION MANAGEMENT IN THE UKRAINIAN HOTEL INDUSTRY DURING WARTIME

Abstract

The article investigates the experience of innovation management in the Ukrainian hotel industry during the period of full-scale military aggression spanning 2022–2026. The study addresses a critically important sector of the national economy that has simultaneously faced unprecedented destructive pressures – physical destruction of hotel properties, massive decline in tourist flows, chronic energy infrastructure failures, and population displacement – and powerful new growth stimuli generated by the same wartime context. The purpose of the article is to systematize the innovations implemented by Ukrainian hoteliers under wartime conditions, to identify effective management practices with documented results, and to assess the current trajectory of the industry's transformation as of 2025–2026. The research methodology combines analysis of official statistics from the State Agency for Tourism Development of Ukraine (DART), industry reports by Ribas Hotels Group, Interfax-Ukraine, Property Times analytics, and InVenture. The authors apply structural grouping, comparative regional analysis, and dynamic assessment of key performance indicators (Occupancy, ADR, RevPAR). As of mid-2024, 2017 hotels were operating in Ukraine across five structural categories. National chain leaders are Optima Hotels (64 properties), Ribas Hotels (21), and Premier Hotels and Resorts (11). Among international operators, Accor (9 hotels) and Radisson (5 hotels) remain active. At least 12 major hotels totalling 922 rooms have been destroyed or damaged since the start of the full-scale invasion. Despite this, the total number of hotels, motels, and hostels has grown: hostels by 28,7%, motels by 10,7%, hotels by 9,1% compared to pre-war levels. Six primary innovation types were identified and documented: (1) energy autonomy technologies – autonomous generators, Solar+BESS systems, LED lighting, mandatory in all new projects from 2024, adding +25% to CAPEX but ensuring operational continuity; (2) digitalization of operations – PMS, CRM, Revenue Management Systems delivering 15–25% cost reductions; (3) contactless technologies – mobile check-in/out, QR menus, digital keys; (4) service diversification toward rehabilitation, medical, workation, and MICE tourism; (5) dynamic pricing based on OTA optimization and channel management (RevPAR growth of 10–20%); (6) marketing innovations through direct booking channels and loyalty programs. Regional analysis reveals profound differentiation: western Ukraine (Lviv, Ivano-Frankivsk, Zakarpattia oblasts) demonstrates occupancy rates of 60–80% and hosts 82% of new hotel development capital in 2023–2025. For Q1 2025, Kyiv showed consistent year-on-year occupancy growth of +3 to +6 percentage points per month. The 2025–2026 period records unprecedented construction activity: nine hotels were opened in Q1 2025 alone (including Archotel Avenue, Odesa – 334 rooms), with Accor planning to open Novotel Lviv (128 rooms) and Novotel Living Kyiv in Q2 2026. The practical value of the research lies in identifying transferable innovation management practices for the post-war recovery period and providing an evidence-based framework for hotel investors, managers, and public policy makers engaged in tourism sector reconstruction.