CEO of the YE’S Apart-Hotel Network, Irina IVASHKEVICH:
YE’S INTERNATIONAL HOTEL COMPANY EXITS MANAGEMENT OF YE’S ASTANA APARTHOTEL IN KAZAKHSTAN
The Russian hotel company YE’S, which launched its first aparthotel project in Kazakhstan, has announced its decision to withdraw from managing YE’S Astana. Last year, the hotel achieved impressive results, with an average occupancy rate of 81.5%, which increased to 85% in the first half of this year. This unique project, combining the comfort of a luxury apartment with top-notch hotel service, has earned popularity among both Kazakh residents and international visitors. Given these strong results, the decision to exit management comes as a surprise. In an interview with "Interfax-Kazakhstan," Irina IVASHKEVICH, CEO of the YE’S Apart-Hotel network, explained the reasons behind this decision, discussed the company’s performance, and shared its future plans.
- Irina Andreyevna, your company's decision to withdraw from managing the YE’S Astana Apart-Hotel came as a surprise. This was your first project in Kazakhstan, and it has been quite successful. What prompted this decision?
- Over the past three years, we've achieved high occupancy rates and profitability, which are important for both the hotel company and the investors in YE’S Apart-Hotel.
Originally, QZ Apartments, the developer, signed Agreement No. 1, which outlined the construction of the YE’S Astana Apart-Hotel and the subsequent transfer of part of its premises to the YE’S hotel company for office space and hotel operations for an indefinite period.
Recently, however, the developer decided to reclaim control of certain premises—such as opertaional areas, administrative, and public spaces, including the lobby— making it impossible for us to continue managing the Apart-Hotel.
While this decision was difficult for us, it became necessary to maintain the quality of our operations and uphold our high performance standards. Over the past three years, we have diligently managed the Apart-Hotel, delivering consistent returns for our investors and maintaining a strong reputation in the hospitality industry, as evidenced by our high ratings on various platforms.
- Could you tell us about the project—what made it unique for our market, and what results were achieved? Did the investors' expectations for profitability meet their goals?
- YE’S Astana distinguishes itself from other complexes in Kazakhstan through its scale and the high level of services it offers. It is the first investment product in the capital to blend the features of a traditional hotel with those of a residential apartment. Each unit includes a kitchenette and a full range of guest services, making it ideal for both short-term and long-term stays.
Currently, it is the only major project in Astana with a total of 368 units ranging from 25 to 56 square meters. The commercial space covers 5,491 square meters and includes a lobby with 24-hour reception, a spa center, a variety of cafes and restaurants, office spaces, private guest parking, and a business center.
From 2021 to 2024, demand for apartment stays has significantly increased among both local residents and international visitors, driven by several key factors. Primarily, this trend is due to the rise in domestic tourism and the recovery of inbound tourism, which has created a shortage of rooms in traditional hotels, especially in major cities like Almaty and Astana.
Last year, YE’S Astana achieved impressive results with an average occupancy rate of 81.5%, which increased to 85% in the first half of this year. The Apart-Hotel hosted major international conferences, government forums, delegations from other countries, and accommodated global artists, and sports stars. About 30% of the rooms are reserved for long-term stays of one month or more, attracting large consulting firms, public organizations, and educational institutions for their staff accommodations. High performance and significant payouts to investors, totaling over 500 million tenge in 2023, confirm the success of the model and the growing interest in aparthotels from guests.
- However, the developer's failure to meet agreements forced you to step away from managing the hotel. When will this transition be complete, and when will the company officially end its involvement with the Astana project?
- The developer's failure to uphold agreements led us to withdraw from managing the hotel. Although our role in managing the hotel has ended, YE’S will continue to operate the property until a new management company is selected. We are committed to addressing the concerns of property owners, offering advisory support, and presenting investment opportunities in other projects within our network. We are also planning and developing new complexes in St. Petersburg and other major Russian cities. Our goal is to wrap up our involvement professionally, maintain investor trust, and provide alternative options for those involved.
- Are there still plans to expand the network in Kazakhstan?
- The YE’S aparthotel network remains committed to working closely with the commercial real estate market in Kazakhstan. Over the years, we’ve gained a deep understanding of this market and come to truly value the partnerships we've built.
- Thank you for your time!
August, 2024
© 2024 Interfax-Kazakhstan news agency
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