Poland Poland’s hotel investment market slows as Warsaw leads CEE-6 supply growth

The latest data from Cushman & Wakefield show that Poland’s hotel market is entering the second half of 2026 amid growing supply and improving operating performance, but with a more selective investment market. In the first six months of the year, four hotels with a combined 445 rooms changed hands in Poland. The total transaction value reached EUR 59 mln.

The 24 pct year-on-year decline in investment volume does not, however, indicate a weakening of the sector as a whole. Against the regional and European backdrop, the Polish market continues to benefit from relatively strong demand fundamentals, while Warsaw remains particularly well positioned. According to Cushman & Wakefield forecasts, the Polish capital will lead CEE-6 capitals in hotel supply growth in 2026.

Four transactions worth EUR 59 mln

According to the MarketBeat CEE-6 Hospitality H1 2026 report, four hotel transactions were completed in Poland in the first half of 2026. The properties had a combined 445 rooms and a total value of EUR 59 mln.

Major transactions included the sale of the 173-room Hampton by Hilton Krakow Airport, the 89-room IBB Hotel Gdańsk and the 133-room Havet Hotel Resort & Spa in Dźwirzyno.

The transaction mix shows that investor interest is not limited to the largest cities. The market includes both assets in Kraków and Gdańsk and leisure properties located along the Baltic coast.

The first half of 2026 confirms that the Polish hotel market is developing along several different paths. Warsaw remains the region’s key reference point for new supply, while major transactions are also taking place in Kraków, Gdańsk and leisure destinations. In an increasingly selective investment environment, the asset’s location, quality and operating structure remain crucial, as does its ability to generate the strongest possible operating performance.
Maciej Prończuk, senior consultant, valuation & advisory, hospitality & alternatives, CEE & SEE, Cushman & Wakefield

Warsaw leads supply growth

One of the key trends in the regional hotel market is the expansion of supply in the CEE-6 capitals. In the first half of 2026, the number of hotel rooms in these cities increased by 2.2 pct year on year. During this period, nine hotels opened, offering a combined 1,054 rooms.

The new projects covered a broad range of segments, from midscale to luxury, with the largest share of new openings coming from the midscale segment.

The outlook for the full year provides an even clearer picture. Hotel room supply across the CEE-6 capitals is expected to increase by 2.8 pct, with Warsaw a clear leader. The number of available rooms in the Polish capital is forecast to rise by as much as 7.2 pct.

Budapest ranks second, with forecast growth of 4.2 pct.

Supply growth is supported, among other factors, by relatively strong demand for hotel services and an improving geopolitical environment. Warsaw remains one of the most attractive markets for new hotel projects in Central and Eastern Europe.

Poland benefits from favourable regional conditions

Hotel operating performance across the region also points to improving market conditions. In the first half of 2026, RevPAR across the CEE-6 increased by 8.2 pct year on year. The improvement was driven by both higher average daily rates (ADR), which increased by 4.7 pct, and stronger occupancy, which rose by 2.1 percentage points.

Budapest recorded the strongest RevPAR growth among the region’s capitals, at 15.3 pct. It was followed by Bratislava, with growth of 13.5 pct, and Prague, where RevPAR increased by 10.5 pct.

Poland also recorded growth, although at a more moderate rate. RevPAR increased by 4.6 pct year on year.

Warsaw’s occupancy rate remains a particular strength. Despite the forecast significant increase in room supply, the Polish capital currently has the highest occupancy among the CEE-6 capitals. This indicates that new supply is entering a market where demand remains relatively strong.

For comparison, average RevPAR in Europe stood at EUR 101 in the first half of 2026, up 3.0 pct year on year. ADR increased by 2.2 pct, while occupancy improved by 0.4 percentage points.

Eastern Europe performed particularly well against the broader European market, with RevPAR increasing by 6.0 pct. Among individual cities, Milan stood out with growth of 24 pct, followed by Budapest at approximately 15 pct.

Investors remain active but increasingly selective

Poland’s hotel market reflects a broader trend across the CEE-6 region. In the first half of 2026, hotel investment transactions across the six countries totalled EUR 314 mln. This was 50 pct less than in the first half of 2025, which was exceptionally strong due to several large transactions.

Between January and June 2026, 21 hotels comprising a total of 3,146 rooms were sold across the CEE-6. The average transaction price was EUR 149,199 per room, excluding transactions valued at less than EUR 5 mln.

The structure of investment demand also changed. As much as 44 pct of total volume involved hotels in the Upper Midscale and Midscale segments. A year earlier, Upper Upscale properties accounted for the largest share of transactions.

Capitalisation rates for prime hotel assets in the CEE-6 capitals also remained stable. In the first half of 2026, they ranged from 6.25 pct to 8.5 pct.

In Bucharest, Budapest and Prague, capitalisation rates fell by 25 basis points year on year. In Warsaw, as well as Bratislava and Sofia, they remained unchanged.

European market favours larger, higher-quality assets

Across Europe, hotel investment totalled EUR 11.7 bln in the first half of 2026. This was 9.5 pct less than a year earlier, but 19.5 pct above the average for the same period over the previous ten years.

Transactions involved 384 hotels offering a combined 51,219 rooms. The market was nevertheless characterised by a clear concentration of capital on a smaller number of larger, high-quality assets.

The number of transactions worth more than EUR 100 mln increased by 30 pct year on year, while the average price per room rose by 9 pct to EUR 228,416.

Investors showed particularly strong interest in Upper Upscale and Upscale hotels. Properties in these two categories accounted for half of total European investment volume.

Another notable trend was the growing activity of investors from the Asia-Pacific region, which increased by 86 pct year on year.

UK and Spain lead investment

The UK remained Europe’s largest hotel investment market in the first half of the year. Hotel transaction volume reached EUR 3.22 bln, up 74 pct year on year.

Spain ranked second, with a transaction volume of EUR 2.66 bln, an increase of 34 pct.

London remained the leading European capital. In the first half of 2026, 24 properties with a combined value of EUR 2.3 bln changed hands. Paris, Madrid and Vienna followed.

Second half could bring a recovery

Despite the weaker first-half result, the outlook for the European hotel market remains relatively positive. Several major portfolio and platform transactions are being prepared for completion in the second half of 2026 and could significantly increase full-year investment volume.

Investors continue to face risks related to financing costs, however. A renewed increase in inflation could limit the scope for further yield compression and, consequently, affect asset valuations and sellers’ expectations.

In this environment, assets with strong operating fundamentals, good locations and appropriate quality are likely to have an advantage. Poland, and Warsaw in particular, has strong arguments for maintaining investor interest. Growing room supply is being accompanied by improving operating performance, while the capital remains one of the best-performing markets in the region in terms of occupancy.

The coming months will therefore show whether growing supply will further strengthen Warsaw’s and Poland’s position on the CEE hotel investment map, or whether higher capital costs will constrain the pace of new transactions.