"Our Projects Demonstrate the Viability of Investment in Ukraine" — Chairman of Hartwall Invest
Exclusive interview with Victor Hartwall, Chairman of K. Hartwall Invest Oy Ab and owner of Leopolis Hotel Lviv
Text Oxana Gryshyna
Q: Your family invested in the Leopolis Hotel over 17 years ago. Given that the payback period for hospitality projects is typically around 20 years, are you satisfied with the financial performance? How close is the asset to reaching its break-even point?
Victor Hartwall: Hospitality projects are indeed long-term plays, usually with a 20-to-30-year ROI cycle. We have nearly recouped our initial capital. Our peak financial performance occurred between 2012 and 2016. While 2020 was challenging due to the pandemic, we utilized the wartime period to complete a comprehensive renovation.
Regarding 2025 performance, the results are the strongest we’ve seen in last five years. Our occupancy rate reached 53%, outperforming the Lviv 5-star segment average of 45%. We maintain the highest Average Daily Rate (ADR) in the city at €125 (excl. VAT), nearly double the local market average. Total revenue for 2025 reached approximately €2 million, representing 40% growth in local currency. This project exemplifies long-term, people-centric investment. The data also suggests a shift in risk perception: our core guest demographic remains foreign nationals, indicating that international travelers no longer view visiting Ukraine as an insurmountable risk.
Q: The renovation took place during the war (2022–2023). What was the Capex, and what is the future development strategy?
Victor Hartwall: The renovation was already underway when the war began. We chose to proceed; the hotel remained operational while adapting to wartime exigencies. It was inspiring to see how our corporate culture and team spirit bolstered our resilience. As investors, we placed full trust in the local management, which enabled the agility required to respond to the situation.
Regarding energy security, we initially installed a small generator for critical functions but later upgraded to a high-capacity unit. Cumulative investment into the hotel since inception is approximately €20 million, with the final renovation phase accounting for €2.5 million. This year, we strengthened our Supervisory Board by appointing Leena Turunen, who manages a hotel chain in Finland. We expect her to some new ideas and help in driving operational efficiency and further optimizing business KPIs.
Q: What are the primary wartime operational challenges in the hospitality sector?
Victor Hartwall: Personnel mobilization is critical. We risk losing specialized competencies built over decades, such as senior engineers. Additionally, the uneven competitive landscape is a concern. Unlike many local players, we operate with full transparency (“white” operations) and undergo annual external audits. While this is a competitive advantage for talent acquisition - we offer the highest official salaries in the market - it somewhat limits our ability to compete on price. We will not engage in price-cutting, in fact, we are discussing a rate increase with the local team. European hotels offering comparable service levels charge significantly higher premiums. Our strategy focuses on product quality and our specific audience, over half of whom are international.
Q: How severe is the labor shortage?
Victor Hartwall: Our core team is deeply rooted. 50% of our management has been with us for over a decade. However, labor remains scarce. We’ve had to be creative - for instance, in housekeeping, we’ve partnered with other hotels to share staff during peak dates.
Q: Regarding your agribusiness interest, CPG (Strong Energy West LLC), how has the hub’s development plan changed following the wind-down of USAID programs?
Victor Hartwall: CPG represents our investment in Ukraine’s innovative agrisector - a full-cycle operation from potato cultivation to the production of starch and biopolymers. The construction of our energy-efficient short-term storage facility was supported by the USAID AGRO program. Part of the funding was secured through that program, while the remainder was sourced from other partners.
Q: What is Hartwall Invest’s equity stake and capital commitment to this project?
Victor Hartwall: We hold approximately a 10% stake, representing about €2.5 million. We intend to scale this direction. While some produce goes to the snack industry, the focus is on processing into starch, which has a long shelf life. Exporting starch is a high-growth vertical where the company is a market leader. We are also focused on developing innovative biopolymers for the global market.
Q: K. Hartwall (logistics) has operated in Ukraine for 15 years. What is your current market share?
Victor Hartwall: Our market share in Ukraine is modest, but our client portfolio includes the country’s largest retailers, such as Epicentr and Fozzy Group. In Finland, we serve major players like S Group and Kesko.
Q: In Europe, your company is expanding its logistics and industrial footprint with a focus on R&D, e-commerce, and robotics. Do you see similar opportunities in Ukraine?
Victor Hartwall: We are currently building a new plant near Hamburg to scale production of our LiftLiner tow tractors, A-MATE automated guided vehicles (AGVs), and mobile robots. While we don't have immediate plans for similar manufacturing investments in Ukraine - given that even the European automotive industry is currently facing a cyclical downturn - our automation solutions are highly relevant for the Ukrainian market, particularly for warehouse optimization.
Q: Logistics hubs are rapidly developing near Ukraine's western border. Will you target this segment?
Victor Hartwall: Modern logistics centers require high levels of automation. Our solutions are tailor-made for them. While Ukraine currently has other immediate priorities, I expect a surge in demand within a few years. I remain in close contact with Ukrainian retail leaders; they are very interested in our R&D. We look forward to discussing these solutions with them at the LogiMAT trade fair in Germany in March 2026.
Q: How do you assess the outlook for new foreign direct investment (FDI) into Ukraine?
Victor Hartwall: There is significant interest, currently in the "market appraisal and risk assessment" phase. In Finland, we see new initiatives organizing "exploration tours" to Ukraine. The Leopolis Hotel has become a hub for these activities. Many visitors between 2022 and 2025 arrived as part of humanitarian missions - people who perhaps never considered Ukraine as an investment destination before. Their firsthand experience of the country's potential will likely drive future industrialization and logistics expansion. It is here [at the hotel] where they meet, build strategic relationships and launch business initiatives. Amd vice versa, we often see business-led initiatives pivot toward humanitarian aid and philanthropic activity. A prime example is our charitable organization, 'Caravan to Ukraine,' which brings together partners not only from Finland but from various other nations.
Overall, I anticipate an investment boom. I am already in discussions with partners who are actively conducting due diligence on projects while awaiting the war to end to finalize their entries.
A critical challenge moving forward will be Ukraine's capacity to absorb such a significant influx of capital. Every successful project will act as a catalyst for further investment, and on the other hand, any operational delays or transparency issues - such as corruption scandals - will serve as a deterrent to the international investment community.
Q: In your view, what measures would facilitate the process of establishing and operating a business in Ukraine?
Victor Hartwall: First and foremost, the elimination of corruption at both the national and municipal levels. While I do not have a definitive solution on how to achieve this, even the smallest instance of corruption erodes investor confidence. Secondly, investors seek stability. Currently, regulatory frameworks in Ukraine are subject to constant change. While local businesses may have adapted, it is extremely difficult for a foreign investor to continuously adjust and forecast future conditions. Without regulatory predictability, strategic planning becomes impossible.
Q: What are your expectations for 2026, and which potential projects are currently under review?
Victor Hartwall: I optimistically hope that this year will outperform 2025. Our current focus is on optimizing the performance and ROI of our existing portfolio; therefore, we are not considering new ventures at this time, despite a steady stream of incoming proposals. However, should our investors decide to diversify further, any new projects would likely leverage our European expertise - specifically in expanding logistics infrastructure, industrialization and related sectors.
