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

Warehouse & industrial

POLAND Inter Cars drives into Panattoni Sosnowiec I

schedule 30 June 2022
Opr./edited by NN

Polish automotive parts supplier Inter Cars Group has leased more than 20,000 sqm in Panattoni Park Sosnowiec I in Upper Silesia.

Investment & finance

Poland Echo sells twice

schedule 30 June 2022

Echo Investment has today announced the closing of two disposals. MidPoint71 in Wrocław has been acquired by the Czech-based Trigea Real Estate Fund for over EUR 100 mln, while German fund manager KGAL Group has bought three buildings in the Fuzja office complex in Łódź for EUR 56 mln.

Office & mixed-use development

Hungary University buys from Warimpex

schedule 30 June 2022
Opr./edited by JC

Warimpex Finanz- und Beteiligungs AG has sold the B52 Office building in Budapest to Semmelweis University, which specialises in medical and health sciences, with the 5,200 sqm property changing hands for EUR 12.575 mln.

Office & mixed-use development

CZECH REPUBLIC CA Immo fills two in Prague

schedule 29 June 2022
Opr./edited by NN

Three new leases for a total of around 4,700 sqm of office space have been signed for two office buildings in the River City Prague complex, which was developed by CA Immo.

Office & mixed-use development

POLAND FTFI moves into Wadowicka 3

schedule 29 June 2022
Opr./edited by NN

Forum Towarzystwo Funduszy Inwestycyjnych (FTFI) is the latest tenant to move into the newly completed third building of the Wadowicka 3 office complex in Kraków.

Warehouse & industrial

POLAND GTV add mores light to MLP Pruszków II

schedule 29 June 2022
Opr./edited by NN

Polish furniture accessories and LED lighting distributor GTV has leased another 32,000 sqm at MLP Pruszków II. The company, which has been a tenant of the park since 2018, already occupies 20,300 sqm at the logistics centre on Warsaw’s western outskirts.

Warehouse & industrial

POLAND More packed in at EQT Exeter Gdańsk

schedule 29 June 2022
Opr./edited by NN

Eviosys Packaging Poland has renewed and expanded its lease in EQT Exeter Park Gdańsk. It will now occupy over 5,000 sqm of warehouse and office space.

Office & mixed-use development

POLAND Room made for CitySpace in MidPoint71

schedule 28 June 2022
Opr./edited by NN

Flex office provider CitySpace is to open a 3,500 sqm centre in the MidPoint71 office building in Wrocław, which is owned by Echo Investment.

Retail & leisure

POLAND Nine new brands for Galeria Belchatów

schedule 28 June 2022
Opr./edited by NN

Reserved, Mohito, Cropp, House, Sinsay, CCC, Half Price, Eobuwie and Modivo are the latest brands to be secured for Galeria Bawełnianka in Bełchatów in central Poland, which is scheduled to open on March 1st 2023.

Investment & finance

CENTRAL EUROPE S Immo lifts cap for CPI takeover

schedule 28 June 2022
Nathan North
deputy editor

Austrian real estate investor and developer S Immo has officially confirmed that it has abolished its voting rights cap, thus providing Czech counterpart CPI Property Group with a controlling stake and triggering a mandatory takeover offer.

Warehouse & industrial

POLAND Heiland says hi to Hillwood Mysłowice

schedule 28 June 2022
Opr./edited by NN

Heilind Electronics Europe has leased around 4,000 sqm of warehouse and office space in the Hillwood Mysłowice logistics park in Upper Silesia.

Retail & leisure

POLAND Smart money for Newbridge

schedule 27 June 2022
Nathan North
deputy editor

Bank Pekao has refinanced Newbridge Poland’s ‘Smart’ portfolio of retail parks with a EUR 10 mln loan.

Office & mixed-use development

ROMANIA Indotek picks up One Victoriei Center

schedule 27 June 2022
Nathan North
deputy editor

Hungarian investment manager Indotek Group has acquired the One Victoriei Center office building in Bucharest’s CBD from its developer, One United Properties, for an undisclosed sum.

Office & mixed-use development

ROMANIA Siemens adds more energy to One Cotroceni

schedule 27 June 2022
Nathan North
deputy editor

Siemens Energy has leased 7,500 sqm of office space in the second office phase of One Cotroceni Park, which is under development in Bucharest.

Warehouse & industrial

LCube gets to work in Mszczonów

schedule 27 June 2022
Opr./edited by NN

Polish industrial developer LCube is to start its latest project – a 35,000 sqm warehousing centre near Mszczonów, about 55 km south-west of Warsaw city centre.

Retail & leisure

SLOVAKIA Atrium sells Optima for EUR 118 mln

schedule 24 June 2022
Opr./edited by NN

Atrium European Real Estate Limited, part of Israeli group G City (formerly Gazit Globe), has sold the Optima shopping centre in Košice in eastern Slovakia to an undisclosed buyer for EUR 118 mln.

Investment & finance

CENTRAL EUROPE Immofinanz plans future after CPI takeover

schedule 24 June 2022
Opr./edited by NN

Immofinanz has published details of its updated strategy following the majority takeover of the Austrian real estate investor by its Czech counterpart CPI Property Group. This will involve selling off around EUR 1 bln of assets.

Warehouse & industrial

POLAND P3 buys Katowice brownfield

schedule 24 June 2022
Opr./edited by NN

Prague-based industrial developer P3 has completed the purchase of a plot of almost 5 ha in Katowice for the development of a 22,600 sqm warehouse centre.

Warehouse & industrial

Poland 41,000 sqm added to Wrocław V Logistics Centre

schedule 23 June 2022

The Antczak Group has completed construction work in the Wrocław V Logistics Centre for developer GLP.

Office & mixed-use development

Poland The Bridge now officially Smart

schedule 23 June 2022

The Bridge, an office tower under construction by Ghelamco on pl. Europejski in Warsaw is the first project in the CEE to be awarded SmartScore and WiredScore certification for technically advanced buildings.

Latest in Hotels

schedule 01 March 2022

Meininger teams up with Fronton for Kraków hotel

Meininger Hotels and Polish real estate developer Fronton have signed a deal to develop a 503-bed and 135-room hotel in Kraków, scheduled to open in summer 2023.

schedule 03 February 2022

Hotels bounce back in Bucharest

The Bucharest hotel market has the highest growth among CEE capitals in terms of revenue per available room (RevPAR), according to the Hotel Operator Beat H2 2021 report by Cushman & Wakefield.

schedule 04 February 2022

Hospitality revives – in an inhospitable environment

Another difficult year for the hotel market has come to an end – hotels were back in operation for only the last six months of the year, but the summer and autumn seasons were much better than in 2020. But the hospitality sector is resilient and always has the potential to bounce back – according to the ‘Hotel market in the largest cities in Poland. Annual report 2021’ by Hotel Professionals, which ‘Eurobuild CEE’ has been granted the exclusive rights to publish.

schedule 06 January 2022

Sugar Palace turns into Andaz Prague–Hyatt

UBM Development Czechia is close to completing the refurbishment of the more than 100-year-old former Cukrovarnického paláce (Sugar Palace) on Senovážné náměstí in the centre of Prague, which is to re-open in the spring as the Andaz Prague Hotel.

schedule 22 December 2021

CPI checks into Mercure Bratislava Centrum

CPI Property Group has acquired the Mercure Bratislava Centrum Hotel from Invesco Real Estate for an undisclosed sum.

schedule 08 November 2021

Crowne Plaza opens in Budapest

Crowne Plaza Hotels & Resorts has opened its first hotel in Budapest.

schedule 13 September 2021

From Sofitel to Mogotel in Wrocław

The Sofitel Wrocław Old Town, which was closed down permanently due to the pandemic, is to reopen as a Wyndham hotel after a new operator – Latvian company Mogotel – was secured for the hotel.

schedule 05 August 2021

Radisson Resort Kolobrzeg now open

Radisson has opened its 15th hotel in Poland.

schedule 30 July 2021

IHG to open first Polish Holiday Inn Resort

IHG Hotels & Resorts is to open the the first Holiday Inn Resort in Poland – in the Szklarska Poręba mountain resort in southwestern Poland, in partnership with AKME Wiśniewski Szklarska Poręba.

schedule 14 July 2021

H2 Budapest now open

The H2 Hotel Budapest, Trademark Collection by Wyndham has opened.

schedule 09 July 2021

Wing completes B&B Hotel Budapest City

Wing has completed the first Hungarian B&B Hotel on the banks of the Danube in Budapest, having converted the former Angyal office building on Boráros tér, near Petőfi Bridge.

schedule 08 July 2021

Art Hotel opens in Belgrade

Radisson Hotel Group has opened the Belgrade Art Hotel.

schedule 02 July 2021

Hotels count the pandemic cost

In 2020, EUR 370 mln was transacted in the hotel sector in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia, according to the third CEE hotel investment report published by CMS and Cushman & Wakefield.

schedule 01 July 2021

Waltzing in Matild once again

The Matild Palace hotel has reopened in Budapest after five years of extensive renovations. The building, which is owned by Özyer Group, is to be run by Marriott International as a Luxury Collection Hotel.

schedule 25 June 2021

IGHP reports on hospitality losses

According to the Chamber of Commerce (Izba Gospodarcza Hotelarstwa) for the Polish Hotel Industry, Polish hotels face losses from May this year of up to PLN 750 mln.

schedule 09 June 2021

Radisson Blu Bucharest reopens

The Radisson Blu Hotel, Bucharest, has reopened following a major capital investment to elegantly transform the hotel’s lobby and garden area, as well as increase the number of guest rooms to over 600.

schedule 09 June 2021

Warsaw Hub hotels the first for Well Health-Safety

The International Well Building Institute (IWBI) has confirmed that the two hotels in The Warsaw Hub development have been awarded the Well Health-Safety Rating.

schedule 01 June 2021

Hotels prepare for recovery

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

schedule 19 May 2021

Focus now in Elbląg

Focus Hotels has opened an 85-room hotel in Elbląg.

schedule 05 May 2021

IntercityHotel Budapest now open

The IntercityHotel Budapest has opened next to the Keleti railway station., in the eastern part of the city centre.

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