Анотація. The hotel and restaurant business in Ukraine as a subsystem of the HoReCa sector, which provides services in the tourist services market, is considered separately as dependent on many economic factors. According to estimates from the statistics department, in 2019-2022 the number of guests who come to Ukraine will increase to 14-16 million from the current 11-12 million. That's 3-4 million more people to serve, feed and spend the night. The hotel and restaurant services market has matured and our country has become an attractive tourist investment destination. The offer of tourism products in Ukraine related to the hotel services market has changed. The offer of hotel services was adapted to the needs of both foreign and domestic tourists, counting on quality services [1]. Current trends in tourism require the creation of an attractive, innovative and comprehensive tourism product that would be economically accessible to a wide audience of this type of services. In the last decade, two areas of investment have dominated the Ukrainian hotel services market. The first of these are economy hotels, which guarantee the investor high efficiency and low sensitivity to environmental factors, especially external or unstable economic situation. The second is hotels that cater to a specific product that meets the requirements and expectations of a small group of hotel guests (for example, SPA hotels). The article describes the current state of the hotel industry in Ukraine, as well as changes in the hotel and restaurant business and their conditions. Investments in the industry were described, which led to a systematic increase in the level of hotel and restaurant services offered in Ukraine. As a result of the conducted researches it was found that all investigated environmental factors formed the functioning of modern hotels and restaurants, and their impact was dynamic. Investors were forced to constantly identify and create opportunities for profit in the market. It was found that the increase in accommodation facilities was accompanied by qualitative changes, which most often occurred within highly categorized hotels.