In the Polish hotel market, a consistent increase in demand can be observed. According to the Trends Radar report “Real estate on a wave of change”, prepared by Cushman & Wakefield (C&W), the sector recorded a 23 % year-on-year (y-o-y) increase in the number of overnight stays in 2022, and forecasts for the closing of 2023 show an expected increase of 5 % y-o-y”.

“Such positive trends are primarily the result of strengthening domestic demand, while a recovery in the number of overnight stays given to foreign guests is expected in 2024. According to forecasts, next year the number of overnight stays in Polish hotels is likely to exceed the level recorded in 2019 by 7%,” added C&W hotel market expert Maciej Prończuk.

Further recovery in the Polish hotel market will also largely depend on the growth of business travel. While Oxford Economics forecasts a return to pre-pandemic levels of demand in the business segment in Poland in 2027, there are many indications that this could happen much earlier.

Warsaw hotels are already seeing an increase in demand generated by businesses. At the end of the third quarter of this year, the number of room nights and revenue associated with business demand represented 81% and 98% of the levels recorded in 2019, respectively. “Conference demand in Warsaw hotels increased by almost 20% during this period compared to the same period last year, and although it was 25% lower than 2019 levels, it is worth noting that at the same time it generated revenues that were only 5% lower than in the same period in 2019”, said Prończuk.

C&W stresses that although hoteliers are facing a number of challenges due to inflation, rising wages and utility costs, among others, hotels remain profitable.

Adrian Andrzejewski