Polish hotel market still growing

Warsaw

Over the past five years, hotel supply in Warsaw has increased steadily with double-digit growth rates. The number of hotels has been rising at a faster pace than the number of beds with a decrease in the number of beds per hotel. The capital’s hotel supply is dominated by brand-affiliated hotels representing around 67 pct of all hotel rooms. The market is well balance with about 30 pct of hotel rooms in the 3- and 4-star segment. Currently, about 4,600 hotel rooms are under construction or being planned, a large proportion of which are to be in four-star hotels.

Kraków

With a compound annual growth rate (CAGR) of 2.2 pct over the last five years, Kraków had 142 hotels in 2016. The number of beds increased by 5.6 pct on average annually to 21,200 in 2016 with a trend of larger hotels being delivered to the market. Hotel supply in Kraków is divided evenly between brand-affiliated and privately-operated hotels with each segment accounting for app. 50 pct. Based on the number of hotels, the 3-star segment is the most dominant, representing around 54 pct of all hotels and app. 40 pct of the bed supply. Kraków’s current hotel pipeline is around 1,300 hotel rooms with about 40 pct of the rooms to be delivered being in the 4-star segment.

Wrocław

The hotel supply in Wrocław is still relatively small compared to the other markets in the review. The number of hotels increased from 46 in 2012 to 49 in 2016, representing a CAGR of 1.6 pct, while the number of beds increased on average by 3.6 pct annually to app. 8,400 in 2016. Hotel supply is split evenly between unbranded and branded hotels, with Accor being by far the largest hotel chain in the city by number of hotel rooms. Currently about 930 hotel rooms are under construction or at the planning stage which are mostly in the 4-star segment.

Tri-City

Since 2016, hotel supply in the Tri-City increased from 64 to 75 hotels with a growth rate of 17.2 pct and a CAGR of 4 pct. The number of beds has grown at an even faster pace. Around 52 pct of hotels in the area are branded. Although the majority of hotels in the Tri-City are in the 3-star segment, there are no one-star economy hotels. An additional supply of app, 3,500 rooms is to be added to the Tri-City in the near future with most of the rooms being in the 3- and 4-star segments.

Poznań

With an annual increase of app. 3.5 pct, Poznań’s hotel supply has grown from 48 hotels in 2012 to 55 in 2016. The number of available hotel beds has increased at a CAGR of 4.8 pct over the past five years. Overall, hotel beds represent 75 pct of the total supply. The majority of 5- and 4-star hotels in Poznań are affiliated to hotel chains, while 80 pct of 3-star hotels are privately owned and operated. Over 80 pct of all hotels fall into the 3- or 4-star categories. Poznań’s hotel pipeline is around 1,400 additional rooms and will further enlarge the size of the 3- and 4-star segments.

Katowice

With just under 300,000 inhabitants, Katowice is one of Poland’s smaller cities, which is reflected by the limited number of hotels. The number of hotels has not changed, but bed supply has increased slightly, suggests that hotels are expanding or that smaller hotels are being replaced. Based on the number of rooms 56 pct of Katowice’s hotels fall into the 4-star category. The supply is dominated by branded hotels (75 pct), with the majority of independent hotels in the economy segment. Close to 500 additional rooms are in the pipeline, which are mainly to be delivered to the four star segment.