Poland 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. 

The Polish hotel market has been in the midst of intensive growth for several years. With growing ADR and occupancy major cities, investors have been encouraged to open new hotels. As a result new hotel brands and new hotel chains are entering the market with incredible speed.

Based on current forecasts, by 2023, over 26 new hotels could be open in Warsaw, creating a new supply of 5,473 hotel rooms (33% more than current room supply). 

Key Points

Number of chain hotels in Poland is rapidly growing
In 2019, chain penetration index by keys grew up to 41,4% vs 37% in 2018. Chain penetration index by hotels in 2019 was at 16% vs 14% in 2018. 

Chain hotels are still interested in entering resort destinations
International hotel chains are more interested in opening hotels in resort destinations. In 2020, a new Radisson Blu was opened in Szklarska Poręba and another Radisson was announced in Ostróda (Masuria District). Moreover, 2 Mövenpick hotels have been announced, one in Zakopane (to be opened in 2022) and second in Kołobrzeg (to be opened in 2023). 

We expect COVID-19 will make lease agreements less popular
Due to Covid-19, we expect less interest in lease agreements based on fixed rates. Operators will rather focus on variable rents. Preferred currency is PLN.