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News Release


Polish hotel investment market gained pace

According to Jones Lang LaSalle Hotels' Hotel Intelligence report for Poland

Warsaw, 9th May 2012 - The Polish hotel market was one of the best performing in Europe in 2011 with hotels in Warsaw posting an 8.3% appreciation in room yield when compared to 2010, according to Jones Lang LaSalle Hotels’ latest Hotel Intelligence report. The Polish hotel investment market has gained pace due to the country’s impressive economic performance and its market shows great potential for further growth compared to major western European cities in terms of risk versus return parameters.

Angus Wade, Executive Vice President CEE, Jones Lang LaSalle Hotels said: “Warsaw in particular has seen an impressive rebound in hotel performance since the dip in 2009. 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 trading performance and during the summer months hotels are expected to operate at full capacity, allowing hoteliers to charge high prices. Another major demand generator will be a sound Polish economy that is forecast to grow by 2.3% in 2012. Although growing slower than in 2011, the Polish economy will remain one of the best performing in Europe. 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 said: “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.”

Angus Wade concluded:   ”After a quiet 2010, the investment market saw an impressive comeback in 2011 with a total transaction volume of €125 million. One of the largest transactions was the sale of the Jan III Sobieski (vendor’s advisor was Jones Lang LaSalle Hotels), which was bought by a Norwegian property company Wenaasgruppen for an undisclosed price (rebranded to Radisson Blu Sobieski). We expect a continued interest from foreign investors in Poland, with a focus on quality assets in key cities such as Warsaw and Krakow.”