Case Study Of A Successful Investment In Real Estate: RIS Opera Apartments Yerevan

RIS Opera Apartments Yerevan is part of the RIS Apartments portfolio, a brand that brings together a collection of diverse apartment offerings to accommodate a wide range of guest needs. What unites all RIS Apartments properties is a shared commitment to hospitality excellence and the highest standards of service.

The RIS Apartments brand is owned and managed by FYM Hospitality Group.

RIS Opera Apartments Yerevan follows the aparthotel model—a collection of apartments located within a single building, designed for short-term stays while offering hotel-like services. Situated at 52 Teryan Street, the property consists of eight fully furnished apartments occupying the top three floors of a six-story building.

The aparthotel model has gained immense popularity in recent years, attracting travelers who seek the comfort and privacy of an apartment with the convenience and services of a hotel, including cleaning, security, and guest assistance.

Under the RIS Apartments brand, FYM Hospitality Group is expanding a network of aparthotels. A typical RIS aparthotel consists of at least four apartments located in a central urban area. In the case of RIS Opera Apartments Yerevan, the project was strategically developed near the Alexander Spendiaryan National Academic Opera and Ballet Theater, which inspired its name.

– Owners’ objectives

The property owners’ initial goal was to renovate and operate the space as a hospitality business rather than pursue traditional leasing. From the outset, the aparthotel concept was the preferred approach. Through a collaboration between FYM Hospitality Group and Mixxup, the project successfully transformed the property into a professionally designed, guest-friendly environment that offers an immersive local living experience.

– Market research and feasibility analysis

The project’s feasibility assessment was based on data from similar properties, leveraging eight years of industry experience. A comprehensive market analysis examined key factors such as demand, competition, and location potential. Findings confirmed that the aparthotel concept was in high demand in this area, aligning with global trends where travelers increasingly seek private yet well-serviced accommodations.

– Challenges and solutions

One of the primary challenges was efficient space planning and modern renovation using minimalist design principles. By carefully optimizing the layout, the team maximized functionality and comfort. Additionally, implementing FYM Hospitality Group’s operational management system helped achieve high occupancy and strong financial performance, ultimately contributing to tie property value growth in Yerevan.

When the project launched, Armenia’s real estate and hospitality sectors were experiencing significant growth, partly fueled by the influx of tourists following the Russia-Ukraine conflict. While this surge in demand benefited the project, its feasibility study had already accounted for long-term sustainability, ensuring continued success beyond external market fluctuations.

Throughout 2024, the aparthotel had an average occupancy rate of 84.01%, hosted 1,315 guests, and the average rating on booking platforms is 9.8/10.

The teams at Mixxup and FYM Hospitality Group worked closely with property owners, setting clear Key Performance Indicators (KPIs) and analyzing different financial scenarios (pessimistic, realistic, and optimistic). The final results exceeded the projected realistic expectations.

One initial concern was the absence of an elevator in the building, which could have been a drawback. However, through exceptional service quality, the team successfully mitigated this factor, ensuring it had no negative impact on occupancy rates or pricing strategies.

The success of RIS Opera Apartments Yerevan has demonstrated that the aparthotel model is a highly profitable and sustainable business strategy. Its achievements have encouraged further expansion, with a new aparthotel project on Mashtots Avenue currently in development. This case study highlights the potential of real estate investments in hospitality, proving that strategic planning, expert management, and market insight can transform a property into a thriving business.