PL

Hotels prepare for recovery

Hotels
Most owners and operators expect a rebound in the hotel sector in European capitals over 2023-2024, according to Cushman and Wakefield.

According to 70 pct of those surveyed, smaller regional cities, driven by domestic demand, should recover faster than the capitals.

In Poland, the coronavirus pandemic hit the hospitality industry with full force in March 2020. Many group- and individual-bookings and conferences were cancelled in the last week of February. To minimise their losses, hotel managers and operators took numerous steps to reduce their costs. As staff salaries are the main hotel operating cost they were also the first to be hit by restructuring measures. Many hotels decided not to renew contracts or terminated them with temporary employees and also suspended hiring. Just as in other industries, hotel operators encouraged their staff to take their holidays and child care leave. Luckily, many companies received subsidies for their employees’ salaries and for their social insurance contributions, allowing them to retain key staff during the lockdown periods. Despite hotels being shut, many fixed costs remained such as those of mandatory safety maintenance for their buildings and installations. The easing of pandemic restrictions in May 2020 allowed hotels to begin recovering. Demand from domestic tourism in Poland was high, which helped improve overall year-end financial results. Unfortunately, towards the end of December 2020 new restrictions were imposed on the hotel industry. From February 12th until March 14th hotels were allowed to open for guests but with a maximum occupancy of 50 pct. Only a few hotel operators reported slightly better results in February as a result of strong performance on weekends, especially over the Valentine period. However, the sharp rise in Covid-19 cases and the re-imposition of the lockdown on hotels for tourists with a limited number of business-stays permitted in the first days of spring once again adversely affected hotel financial performance. According to STR Global, the first quarter of 2021 was considerably weaker for Polish hotels in terms of RevPAR than the same period of 2020. All five of the largest cities in Poland reported a RevPAR decline of between 64 pct and 84 pct. It is important to point out that the first quarter of 2020 had already been weaker than the three months of 2019 by 20-30 pct. In terms of average occupancy rates for hotels that remained open, Krakow recorded the lowest at below 11 pct in March 2021. While occupancy levels for that month were boosted at weekends, business days had a far more limited impact. In March 2021, Average Daily Rates (ADR) were down by between 5 pct in the TriCity and 33 pct in Kraków on March 2020. However, in March 2020 (at the beginning of the pandemic) hotels tried to maintain their prices. In March, as in previous months, there were no significant differences in the performance figures for hotels in and outside cities, or between hotels from the business and tourist segments. As the vaccination campaign has started to pic up steam, hotels have been permitted to open for guests since 8th May with a maximum occupancy level of 50 pct. This rule is to remain in force until 5th June and beyond provided there is no spike in infection rates.
Justyna Kijewska, associate, senior portfolio manager at Cushman & Wakefield

Latest news

Office & mixed-use development

Poland Polcast Media moves into Trinity One

schedule 18 March 2024
Opr./edited by ANZ

Polcast Media Group, the owner of Polonia 1 television, one of Poland's oldest commercial television stations, has recently secured a lease for circa 500 sqm in Trinity One office building located in Warsaw's Służewiec district.

Office & mixed-use development

Poland Loftmill makes its debut in Silesia

schedule 18 March 2024
Opr./edited by ANZ

The Loftmill label has joined the tenants of the .KTW I office building. Owned by Rise.pl, the company offers serviced offices and coworking space.

ESG

Poland BREEAM Outstanding for Panattoni

schedule 18 March 2024
Opr./edited by JC

Panattoni has been awarded another BREEAM certificate with a rating of Outstanding for Panattoni Park Poznań A2. The building B was constructed for H&M without the use of PCVs.

Office & mixed-use development

Poland Another tenant on board at Diuna

schedule 18 March 2024
Opr./edited by ANZ

Warsaw's Diuna office complex from the Syrena Real Estate portfolio has welcomed a new tenant, JDE Peet's. The company's new 900 sqm office was designed by BIT Creative.

Investment & finance

World Real estate at a pivot point

schedule 18 March 2024
Opr./edited by JC

Despite the monetary headwinds and continued economic uncertainty around the world, there is a strong belief that the global real estate industry is at a "pivot point", with improving prospects ahead for renewed investment activity, according to the latest Emerging Trends in Real Estate® Global Outlook 2024 from PwC and the Urban Land Institute. 

Warehouse & industrial

Poland AS-PL goes to Tricity

schedule 18 March 2024
Opr./edited by JC

Automotive company AS-PL has signed up to Panattoni Park Tricity East I by leasing nearly 2,900 sqm of warehouse and office space.

Eurobuild FM

Poland / Cannes Big business under the palm trees (ep. 1)

schedule 17 March 2024
Eurobuild CEE

MIPIM 2024 has officially closed, but we have our special podcast series from Cannes for you! Tune in to all the latest news, opinions and forecasts from the fair – this week exclusively at www.eurobuildcee.com and global streaming platforms!

Warehouse & industrial

Poland Plant ready for operation

schedule 15 March 2024
Opr./edited by ANZ

Panattoni has completed and handed over the main European production facility for Maxcess. Built on a BTS basis, the new hall in Łubowo will facilitate the relocation of the existing factory, enhance the capacity for new product and service development, and is expected to double employment, bolstering the local labor market's growth.

Warehouse & industrial

Germany Early full occupancy in Hamburg

schedule 15 March 2024
Opr./edited by ANZ

The technology company Freudenberg Sealing Technologies will move into the multi-user campus Victoria Park Hamburg, currently being developed by Garbe in a joint venture with the Jebens Group. The property, which has a total area of around 12,000 sqm, is scheduled for completion in February next year.

Retail & leisure

Poland Redkom develops Przystanek Karkonosze

schedule 15 March 2024
Opr./edited by ANZ

Office & mixed-use development

Hungary Green light for Millennium Gardens

schedule 14 March 2024
Opr./edited by JC

Revetas Capital and TriGranit have officially secured the occupancy permit for the second phase of Millennium Gardens in Budapest.

Office & mixed-use development

Romania Timpuri Noi Square twice as big

schedule 14 March 2024
Opr./edited by ANZ

Vastint Romania is starting phase II of the Timpuri Noi Square project in Bucharest. After obtaining the necessary permits, the developer will construct two new office buildings, which will increase the area of the entire complex to more than 100,000 sqm.

Warehouse & industrial

Poland Electronics at Segro Logistics Park Gliwice

schedule 13 March 2024
Opr./edited by JC

Segro has signed an agreement with Centrumelektroniki.eu for the rental of warehouse and office space in Silesia. In the new location, the company will strengthen its existing logistics services, offering more efficient completion and shipment of products to the target customer.

Warehouse & industrial

Poland Construction starts on CTPark Rzeszów

schedule 13 March 2024
Opr./edited by JC

CTP is starting construction of its first manufacturing and logistics complex in the Podkarpackie region. In Rzeszów, the developer will build a complex of two facilities with a total leasable area of nearly 50,000 sqm.

Office & mixed-use development

Poland Konika Minolta stays at The Park Warsaw

schedule 13 March 2024
Opr./edited by ANZ

Konica Minolta Business Solutions has extended its 3,000 sqm office lease at The Park Warsaw complex in the capital's Włochy district. The company will remain in the location for another five years.

Warehouse & industrial

Poland Better second half

schedule 13 March 2024
Opr./edited by JC

After the very successful years of 2021 and 2022, known as the golden period of development of the industrial market in Poland, 2023 was a period of greater challenges due to a change in the macroeconomic situation. Axi Immo presents the "Polish Industrial Market 2023" report.

ESG

Europe We know the winners of Global ESG Awards

schedule 13 March 2024
Opr./edited by JC

The trophy ceremony for the Global ESG Awards took place during MIPIM in Cannes. Following 180 nominations across six categories, 6,801 public votes and 2,177 evaluations done by a global official jury committee, a ranking revealed six  winners.

Investment & finance

CEE NEPI Rockcastle boosts the pipeline

schedule 12 March 2024
Opr./edited by ANZ

NEPI Rockcastle has expanded its development and refurbishment pipeline in 2024 to just over EUR 650 mln across its Central and Eastern European markets, the biggest retail investment programme in the region.

Retail & leisure

Romania Leroy Merlin to expand in Bucharest

schedule 12 March 2024
Opr./edited by JC

Leroy Merlin leased two retail spaces in Bucharest with a combined area of 21,000 sqm from the Supernova Group.

Investment & finance

Poland Rock Park Przeworsk changes owner

schedule 11 March 2024
Opr./edited by ANZ

The Rock Park Przeworsk retail park, opened at the beginning of February, gained a new owner after a month of operation. The transaction took place between RockCapital. and ME Invest, a company owned by TERG S.A., owner of the Media Expert chain. 

Latest in Hotels

schedule 08 March 2024

The first in Southeast Europe

Radisson RED Belgrade has opened its doors as a new upscale lifestyle hotel, marking the debut of the Radisson RED brand in Southeast Europe.

schedule 27 February 2024

Bucharest hotel market rebounds

The hotel market in Bucharest has experienced a moderate annual average growth in new offerings, at 0.9 pct between 2019 and 2023. This modest trend was primarily influenced by the cancellation of Urban Zoning Plans. Between 2024 and 2025, an estimated average annual growth rate of 4.1 pct in the number of rooms is expected, according to data from the real estate consulting company Cushman & Wakefield.

schedule 15 February 2024

Accelerated recovery

According to Cushman & Wakefield analysis, after a period when the Prague hotel market was lagging behind other European cities in terms of recovery from the impacts of the covid pandemics, all of its performance indicators increased significantly in 2023. The Prague hotel market proves its resilience and attractivity.

schedule 05 February 2024

IHG's European debut

IHG Hotels & Resorts announced its first Holiday Inn & Suites property in Europe with the signing of Holiday Inn & Suites Budapest Centrale – part of its Holiday Inn Hotels & Resorts brand.

schedule 10 January 2024

The Luxury Collection will make its debut in Krakow

Marriott International and the Dobry Hotel Group have signed an agreement to create The Luxury Collection brand's first hotel in Krakow in the historic Lubomirski Palace building.

schedule 30 November 2023

The seventh Accor in Kraków

A new hotel is being built in Kraków. It will be the seventh facility of the AccorInvest/Orbis group in the capital of Malopolska under the Accor brand in the lifestyle segment. The hotel is scheduled to open in Q2 2025.

schedule 22 November 2023

Grand Budapest Hotel

Marriott Bonvoy's Autograph Collection Hotels brand is making its debut in Hungary with the opening of its first hotel in Budapest. The Dorothea Hotel is housed in three historic buildings and is named after Archduchess Dorothea, who contributed to the city's development in the 19th century.

schedule 15 November 2023

A luxurious hotel to be opened in Bucharest

One United Properties has signed a memorandum of understanding with Ennismore for opening Mondrian Bucharest, a highly exclusive lifestyle hotel in downtown Bucharest.

schedule 19 October 2023

Hilton to open Canopy in Warsaw

Canopy by Hilton Warsaw, the first lifestyle hotel of the Hilton chain in Poland, is to open in 2025 in the centre of the city.

schedule 13 October 2023

Tribe arises at Budapest Airport

Local developer Wing in cooperation with Budapest Ferenc Liszt Airport has begun the construction of the Tribe hotel at the airport.

schedule 04 September 2023

Hampton by Hilton debuts in Hungary

Hampton by Hilton Budapest City Centre, the country's first hotel under the Hampton by Hilton brand, has opened in Budapest.

schedule 25 August 2023

Rooms with a view

AC Hotels by Marriott, part of Marriott Bonvoy’s portfolio of 31 brands, has announced its brand debut in Croatia with the opening of AC Hotel by Marriott Split. The new hotel is housed on the high floors of the 135-metre-high Westgate Tower with spectacular views of the Adriatic Sea and Split’s unique cityscape.

schedule 21 August 2023

The top 5 hotel markets

In Cushman & Wakefield’s latest Hotel Operator Beat survey, Budapest was placed as the most attractive market in CEE, reaching 4.3 points on a 1–5 scale where 5 means very high interest. Prague is a little step down with 4.2 points, and Warsaw, Kraków and Bucharest complete the top 5 markets targeted by hotel operators.

schedule 08 August 2023

Ibis Styles checks in at Warsaw Airport

The opening has taken place of the Ibis Styles Warsaw Airport hotel, which is situated about 3.5 km from Fryderyk Chopin Airport in Warsaw.

schedule 27 July 2023

Marriott to open Cres hotel

Marriott International has signed an agreement with Valdarke to open an Autograph Collection resort on the isle of Cres in Croatia. The hotel will be the international brand's first on the island.

schedule 17 July 2023

Historic Braşov hotel sold for EUR 9.4 mln

Aro Palace, whose majority shareholder is investment fund Transilvania Investments, has sold the Coroana-Postăvaru Hotel in Braşov in central Romania to Elevate Properties for EUR 9.367 mln.

schedule 23 June 2023

Moxy makes Balkan debut

Moxy Belgrade has arrived in Serbia’s capital city. The 131 guestroom hotel features all-day dining venue Gastro Bar Park and Moxy’s signature 24/7 bar.

schedule 12 June 2023

Le Méridien makes a splash at Lake Balaton

Marriott International announced that it has signed an agreement with Balaport Investment to bring the Le Méridien brand to Hungary, which will also be the first Marriott International resort in the country.

schedule 05 May 2023

Moxy is heading to Budapest

Marriott International has signed an agreement with Forestay Group to debut the Moxy Hotels brand in Budapest, Hungary. Construction of Moxy Budapest Downtown is scheduled to begin this autumn, with the opening expected in 2025.

schedule 25 April 2023

Radisson RED to arrive in Belgrade

Radisson Hotel Group has announced the debut of its Radisson RED brand in Serbia with the signing of Radisson RED Belgrade, set to open later this year. Located just minutes from the capital’s historic centre, the hotel is the first Radisson RED branded facility to be operated by PPHE Hotel Group’s Croatian subsidiary Arena Hospitality Group.

Edition 3 (286) March 2024

Latest comments

Categories