According to STR Global data, Warsaw ranks tenth among key European hotel markets for RevPAR [1] growth in 2023 relative to 2019. Last year, RevPAR for Warsaw hotels experienced an increase of 21% year-on-year and was also above the 2019 level by 26%. The situation on the Warsaw hotel market effectively illustrates market sentiment across the whole country. According to Cushman & Wakefield, Poland is the top CEE-6 [2] country for RevPAR growth in 2023 compared to 2019.
In 2023, the average RevPAR growth on the Warsaw hotel market was largely driven by higher occupancy levels compared to 2019. It is worth noting that Warsaw, Vilnius and Edinburgh are the only main European markets reporting growth which was powered by rising international and domestic demand. Analysis of HotStats data shows that in 2023 Warsaw hotels experienced an increase in leisure demand with the number of nights per available room 20% above 2019’s level. In addition, revenue per available room generated by leisure demand was 35% above the pre-pandemic level,”
comments Maciej Prończuk, Consultant CEE & SEE, Hospitality Expert, Cushman & Wakefield.
Hotel managers are taking measures to increase their ADR to minimize the negative impact of rising operational costs which are a major challenge facing the real estate market. ADR growth was also fuelled by changing hotel demand. There was a marked increase in the percentage share of individual leisure guests who usually pay higher room rates. A similar trend in ADR growth was seen throughout Poland. As a result, RevPAR for the whole country increased by over 21% year-on-year in 2023 and was 18% above the 2019 level. This marks the strongest RevPAR growth compared to 2019 among all the CEE-6 countries,”
adds Maciej Prończuk.
For instance, Warsaw hotels have already reported an increase in corporate demand. HotStats data shows that although the number of nights (per available room) driven by such demand in 2023 was 16% lower than in 2019, it rose by over 12% year-on-year. RevPAR generated by business demand in Warsaw in 2023 was on par with the 2019 level. Conference demand is another bright spot with the number of nights (per available room) in 2023 up by 25% year-on-year and despite this figure being 9% lower than in 2019, RevPAR for this category increased by nearly 13%,”
concludes Maciej Prończuk.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit: www.cushmanwakefield.com.
[1] Average revenue per available room in EUR.
[2] Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia