Ivano-Frankivsk residential developer blago is entering a new segment — in October, the company began construction of its first aparthotel, Son Daven. The first phase in Yaremche is planned to open by the end of 2027, with the second phase following in 2028. Other developers are also entering the Yaremche market, taking advantage of new opportunities.
By 2028, blago plans to launch its first aparthotel Son Daven, according to the project’s Facebook page. The hotel will consist of two sections with around 300 units, which will be sold to private investors.
Blago was included in the 2024 ranking of Ukraine’s largest residential developers by LUN and Forbes Ukraine. Last year, the Ivano-Frankivsk company completed 2,954 apartments, ranking second after Intergal-Bud.
For its first hotel, blago chose Yaremche, located 35 km from the country’s largest ski resort, Bukovel. They are not the only ones: Sensar Development is preparing its second aparthotel in Yaremche, Smart Well, while its first project, Smart Hill, is currently undergoing interior finishing works.
Why developers chose Yaremche?
A self-sufficient tourist anchor
“Most hotels in Yaremche are either budget or outdated,” says Yuriy Hladkyi, founder of the brand marketing agency Grape and co-founder of the mountain town Kryla Karpaty by Edem. His agency developed the marketing and branding for Son Daven.
“For blago, this is an opportunity to showcase themselves; until now, they mainly built residential properties”
— Hladkyi explains.
The Son Daven Aparthotel will consist of two nine-story buildings with 304 apartments, ranging from 37 m² to 105 m², according to LUN. The development is located on Ivana Petrasha Street, Yaremche’s main thoroughfare in the tourist area. The architecture combines modern style with Hutsul motifs, featuring underground parking and recreational zones, according to the project description. Blago declined to comment.
The construction cost of three-star aparthotels starts at approximately $1,700 per m², four-star at $2,000 per m², and five-star at $2,300 per m², including design, construction, interior finishing, and full furniture and equipment, says Volodymyr Kolos, managing partner of CCG Development.
«The cost difference between star categories is around 20–30% or more, depending on the concept and service package»
— he adds.
“It’s a logistical gateway to the region and a self-sufficient tourist anchor with stable demand among Ukrainians,” explains Mark Marchenko, CEO and founder of Sensar Development. Before the war, hotels in the city had clear seasonality: 80–90% occupancy from December to March, and around 30% in summer. Closed borders and occupied coastal areas have redirected tourists to domestic mountain destinations.
«Therefore, the summer 2025 season in Yaremche showed hotel occupancy of up to 90%, while winter remains stable at 70–80%»
— Marchenko adds.
In the first 2.5 months of summer 2025, over 54,000 visitors came to Yaremche, according to the State Tourism Development Agency, citing Ukrzaliznytsia data. During the same period, around 52,500 passengers visited Bukovel.
Tourist taxes in Polianytsia and Yaremche
The Polianytsia and Yaremche communities lead Ivano-Frankivsk in tourist tax revenue. From January 1 to December 1, 2025, the Polianytsia community paid UAH 32 million in tourist taxes. The community includes seven villages and settlements, including Polianytsia, where Bukovel is located.
Who are hotels targeting?
Yaremche appeals to those who don’t want to go directly to Bukovel but enjoy the area, says Hladkyi. Another group includes travelers who couldn’t find suitable accommodations in Bukovel, especially during peak seasons.
Only 50% of visitors to Bukovel ski, says Marchenko from Sensar. Companies are targeting both types of tourists.
Other developers entering the new niche.
Market (not) overheating
«The blago example is not isolated; it’s part of a broader trend,»
— says Rostyslav Khoma, head of real estate advisory services at EY Ukraine.
Financing for these projects is similar to residential construction, and compared with traditional hotels, the economics are better: lower developer equity share and faster return on investment. “Investment aparthotels are built where residential projects are not possible or in tourist regions,” he adds.
Among developers already building aparthotels are LEV Development, Sensar Development, Prostir, Perfect Group, Perspektyva, Arena Invest, Greenwood Development, Kontakt-Invest, Halytska Budivelna Hildiya, Kovcheg, Saga Development, and BGV Development, according to EY.
Saga Development, owned by Andriy Vavrysh, and BGV Development, owned by Hennadiy Butkevych, will open the Circle Aparthotel within the Boston Creative House residential complex in Kyiv. The 380-unit hotel is expected to open in 2027.
Why this niche?
«In the apartment and hotel segments, income dynamics and overall margins are better than in traditional residential»
— says Vavrysh.
Five investment projects are planned in Yaremche - residential complexes with apartments and apart-hotels, according to LUN data. In Polyanytsia - more than 30. In total, there are over 100 investment projects with apartments or cottages in Ukraine.
Prices start from $1860 per 1 sq. m at Smart Hill in Yaremche, $2720 at Circle in Kyiv, from $3800 at Son Daven in Yaremche, indicated on LUN. In Yaremche, five investment projects — residential complexes with apartments and aparthotels — are planned, according to LUN data. In Polianytsia, there are over 30 projects. Across Ukraine, there are more than 100 investment projects with apartments or cottages. Prices start from $1,860/m² at Smart Hill (Yaremche), $2,720/m² at Circle (Kyiv), and $3,800/m² at Son Daven (Yaremche), according to LUN.
«Some aparthotels are not fully functional»
— says Anastasiya Fedirko, manager of real estate advisory services at EY Ukraine. Sometimes, an aparthotel is a residential building without hotel infrastructure, apartment finishing, service offerings, or operational management. True investment aparthotels with professional operators, standardized services, and short-term rental profit models still represent a small market share. “Therefore, there’s no market overheating,” Fedirko concludes.
Information clarified with Smart Hill and Smart House developers after publication.
