Albania Hotels & Chains Report 2021

A very warm welcome to this latest country edition of the Hotels & Chains report which a provides a snapshot of a fascinating moment in hospitality. Will we see the direction of the industry change forever?

When we wrote the last edition, we had no idea that global events would cause such chaos in a market which had seen unprecedented success in 2019. Needless to say the events of the last 20 months have thrown the ownership and performance of the hotel industry into sharp focus, exacerbating friction between owners and operators, putting pressure on lenders, making development debt something of a mirage and laying waste to the best laid plans of many giants in the industry. 

Albania’s popularity on European incoming markets has grown impressively during the last 5 years. Between 2015 and 2019, foreign arrivals grew by 12% CAGR. In 2019, hotel nights increased by 10% in one year, driven both by a robust domestic demand (+10,4%) and the foreign one (+8,5%). Although the current size remains well below other Mediterranean countries, Albania is establishing itself as the next hotel hotspot on the Mediterranean Sea. Investors and hotel chains are chasing opportunities to enter key cities and S&B destinations and benefit from first-mover advantages.

Key Points

350 km of beaches
Albania offers over 350 km of untouched beaches and bays along the Adriatic and Ionian seas. Half of the Chain hotels are located on the coastline and the pipeline confirms the interest of developers, operators and international brands for the new emerging S&B destinations.

Tirana leading the way
The capital leads the Chain hotels development in the country by doubling its supply over the last two years. 

A flourishing domestic market
Not only domestic demand represents more than half of the hotel nights in the country and is growing at a faster pace than the foreign demand, but also the domestic supply is undergoing a consolidation phase with new players such Via Hotels. We expect the next three years a robust growth of local operators.