Hotel fundamentals strong in Poland15 May, 2012 By: Jena Tesse Fox
Investors looking to Europe may well want to keep an eye on Poland, whose hotel market was one of the best performing in Europe in 2011, according to Jones Lang LaSalle Hotels latest Hotel Intelligence report, published on HospitalityNet. Warsaw hotels posted an 8.3-percent appreciation in room yield when compared to 2010, the report says, and notes that the country's investment market has gained pace due to the overall "impressive economic performance."
"Warsaw in particular has seen an impressive rebound in hotel performance since the dip in 2009," Angus Wade, EVP CEE, Jones Lang LaSalle Hotels, said in a statement. Growth in hotel trading performance in 2010 and 2011 was driven by a substantial increase in both occupancy and average room rates. The UEFA European championship in 2012 is expected to support further growth in performance and during the summer months hotels are expected to operate at full capacity, allowing hoteliers to charge higher rates.
Another major demand generator will be a sound Polish economy, which is expected to grow by 2.3 percent in 2012. "Although growing slower than in 2011, the Polish economy will remain one of the best performing in Europe," Wade said. "Demand for business travel is therefore expected to remain robust and the market can expect a further expansion of its MICE sector."
Christoph Härle, CEO continental Europe, Jones Lang LaSalle Hotels, noted that the Polish hotel market is relatively immature compared to other major European capitals, with branded hotels representing only a small market share of the total bedroom stock. "However, branded supply is growing with Marriott and Hilton planning to launch new hotels in Warsaw and other key Polish cities. The supply in pipeline is still comparatively limited and we are likely to see an increasing number of major international brands to enter one of Europe's most dynamic hotel markets."
One of the largest recent transactions in Poland was the sale of the Jan III Sobieski, which was bought by Norwegian property company Wenaasgruppen for an undisclosed price. The property was rebranded to the Radisson Blu Sobieski.
Meanwhile, Poland also provides the best-value five-star hotel accommodation, according to a survey published recently by the Press Association.
Poland's capital Warsaw is one of seven European destinations in the top 10 most affordable luxury hotel list compiled by Hotels.com. Based on average room prices per night last year, Warsaw's five-star hotels cost $134 on average.Topic : Poland, Hotels, Trends
External Source : HospitalityNet, Press Association
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