The Polish Hospitality Market: Overview and Investment Opportunities

Introduction

As a seasoned real estate broker, I’ve been closely monitoring the hospitality market in Poland. The year 2023 was a remarkable one, and the prognosis for 2024 is even more promising. This article provides a comprehensive overview of the market, along with some exciting opportunities for investors.

2023 Summary

The hotel market in Poland has been growing steadily for the past decade. In 2023, the market was expected to reach 3.7 billion euros, making it the biggest in Central and Eastern Europe (CEE) in terms of revenues. The number of hotels, as well as bedrooms in them, has also shown significant growth over the years. Four-star hotels had the most hotel rooms; there were 23 thousand hotel rooms in these hotels, compared to approximately 21 thousand in 3-star hotels.

2024 Prognosis

The hotels market in Poland is projected to reach a revenue of US$2.10bn by 2024. A compound annual growth rate (CAGR 2024-2028) of 1.74% is expected to be observed, resulting in a projected market volume of US$2.25bn by 2028. The user penetration rate is expected to increase from 20.3% in 2024 to 22.1% by 2028. It is expected that 90% of the total revenue in this market will be generated through online sales by 2028.

Types of Hotels in Poland

Poland has a diverse range of hotels to cater to the needs of different travelers. The types of accommodations include:

• Hotels:?These are the most common type of accommodation in Poland. They range from luxury five-star hotels to budget-friendly options.
• B&Bs & Inns:?These offer a more homely and intimate experience.
• Specialty Lodgings:?These include unique accommodations like lodges.
• Guest Houses and Inns:?These are smaller establishments that provide hotel services.

Market Trends

Customers in Poland are increasingly leaning towards unique and personalized hotel experiences. There is a rise of digitalization and technology integration in the Polish hotels market. There is a growing demand for wellness and spa facilities within hotels.

Regions and Regional Statistics

The hospitality market in Poland is spread across various regions. Some of the popular cities with a significant number of hotels include Krakow, Warsaw, Gdansk, Zakopane, Poznan, Wroclaw, Swinoujscie, Sopot, Kolobrzeg, and Wladyslawowo. In terms of regions, the hospitality market varies across different voivodeships, regions, and cities in Poland. For instance, Warsaw’s hotel market was leading the CEE-6 capitals in terms of recovery in 2023. All of its performance indicators increased significantly in 2023. The average daily rate was EUR 94 in 2023, 25% higher than in 2019.

Hospitality Opportunities for Investors

The hospitality sector in Poland has attracted a variety of investors. The investment transactions volume in Poland grew by 82% year on year in 2023, reaching EUR 83 million. The Warsaw hotel market continued to prove its strength, resilience, and attractiveness. Several significant deals are progressing since the year-end 2023, suggesting transaction volumes will rise in 2024.

The bed gap in the hospitality sector is an important factor to consider. As of 2023, the number of nights spent in hotels is still much lower than in the pre-pandemic period, reaching nearly 35 million in 2021. More detailed data for 2023 and projections for 2024 are not available at this time. However, the industry is expected to continue recovering from the impacts of the COVID-19 pandemic.

Foreign Capital Investments

Foreign capital plays a significant role in the Polish hospitality market. In 2022, foreign capital came to Poland from 117 countries. Among the non-EU countries, the largest group were companies with Ukrainian, Belarusian, and Turkish capital, and among the EU countries – Dutch, German, and French. Investors continue to have a variety of opportunities in the hospitality sector. In 2023, the trend of growth in hotel chains continued. The biggest hotel chain in Poland was still Accor with 91 hotels, followed by Polish Hotel Holding with 38 hotels and Hilton Worldwide with 29 hotels. While specific percentages for the representation of hotel chains and bedrooms are not readily available for 2023, the market showed a steady increase in the number of branded hotels. The majority of international chain hotels remained properties with over 100 rooms, while domestic chain hotels continued to offer a greater variety of sizes. This ongoing growth suggests a promising future for investors in the Polish hospitality sector.

Conclusion

The Polish hospitality market presents a plethora of opportunities for investors. With a robust growth trajectory, exciting market trends, and a diverse range of hotels across various regions, the market is ripe for investment.?

As a real estate broker I am actively processing transactions in the hospitality market, both in Poland and internationally. This includes access to off-market opportunities that are not available online, providing a unique advantage to our clients.?I can provide you with the insights and guidance you need to make informed investment decisions. Please feel free to reach out to me for further discussion or inquiries.