The influence of our hotels reaches beyond the confines of our buildings and associated spaces to the surrounding environment. For instance, at our “Wall Street” hotel in Odessa, we embarked on the reconstruction of the inner courtyard, resulting in improved views from the windows and fostering even friendlier interactions with our neighbors. Addressing multiple issues with a single minimal action is the key to efficiency and professionalism.

The 4-star business hotel, Wall Street, located in Odessa, was opened 7 years ago. Over these years, it has earned a good reputation in the hotel market. Its rating on Booking.com was 9.5, and it was also a finalist twice in the International Hospitality Awards.

Throughout its operation, the hotel’s owner collaborated with Ribas Hotels Group. However, in the summer of 2022, the property was sold, and a new owner acquired it along with their management company. Let’s sum up the work on this project.

V.V., the former owner of Wall Street Hotel, shared the story of its creation and operational features in an interview.

In your opinion, what makes Wall Street Hotel unique?

It’s the combination of design, location, and concept. Everything in it is cohesive and complements each other perfectly. Its name is directly connected to my work and worldview, as I’ve written many books on financial literacy, which is reflected in the phrase “Wall Street.” We loved this project and created it for ourselves, not for sale; we were passionate about working on it. That’s precisely why it turned out to be so beautiful and special.

Why did you decide to pursue a hotel project specifically?

Initially, we considered options such as apartments, office spaces, or a hotel. However, after calculations, it became evident that a hotel could yield higher profits. Additionally, the fact that we already had a functioning business center in the neighboring building played a role in our decision, as we didn’t want to create another similar property.

In reality, the business center has been operational for 8 years, while the hotel has been running for 7. Over the years, the hotel has generated more profit per square meter than the business center, confirming the correctness of our decision to build it.

You invited Ribas Hotels Group to participate in the stage of developing the concept and designing the future hotel. Do you believe this decision influenced the hotel’s subsequent success? If yes, then how exactly?

Yes, it indeed had an impact. Often, owners are not aware of the best square footage, optimal placement of elements, and many other factors. That’s why it is better to involve a company that will be responsible for managing the property in the future, or at least a hotel expert, during the design stage. This ensures that the hotel is designed with practicality and efficiency in mind, laying the groundwork for its future success.

What advantages of working with the management company Ribas Hotels Group can you highlight based on your experience?

One of the main advantages is the ease of collaboration. Additionally, it is essential that the company has a young and dynamic team, always ready to implement new ideas, and constantly striving for development, promotion, and improvement of both themselves and their properties.

How would you recommend other hotel investors to choose a management company based on what criteria or principles? What should they pay attention to first?

I would recommend considering the following factors: the number of years the management company has been operating in the market, feedback from hotel owners they have collaborated with, and the ease of interaction with the company’s staff. Additionally, it’s crucial to assess the financial performance of the projects they have worked on.

How much personal time did you allocate to oversee the hotel and work on this business? What were your control points?

I think I dedicated several hours per week to it. During that time, I could, for example, hold a half-hour meeting, visit the hotel, or make business-related phone calls. At the hotel, I monitored occupancy rates, the financial aspect, and addressed technical issues. Additionally, I would visually inspect areas that might need attention.

Do you plan to invest in hotel real estate in the future? Will you consider involving Ribas Hotels Group in new projects?

I currently don’t have plans to invest in hotel real estate. If I do decide to invest, it will likely be in countries with a consistent year-round tourist activity. Of course, if Ribas Hotels Group operates in that country, we will definitely consider collaborating with them again.

Arthur Lupashko, founder of Ribas Hotels Group, about the Wall Street Hotel

Tell me about Wall Street by Ribas hotel. What makes it special for you personally and from a business case perspective?

Wall Street is the first hotel in our network that we managed right from the inception stage, from developing the concept to achieving almost full occupancy and subsequently selling it to a new investor. We aimed to create a property that would be memorable for our guests, and we succeeded. A significant portion of our guests became regular patrons of the hotel.

What was the investment amount in this property, and what were the initially projected payback periods for this hotel?

After its sale, we concluded our involvement with this property. Unfortunately, we cannot disclose the investment amount or the sale price of the hotel as it is considered a commercial secret. However, it almost paid for itself within 7 years. The estimated payback period according to the business plan was 10-11 years.

How do you assess the profitability of acquiring Wall Street for the new owner?

We handed over the hotel to the new management company while preserving the existing team and the property’s reputation. It was a successful sale for our partner and a great acquisition for the new owner. I believe it’s an excellent business case.