Europe -  Bratislava

Bratislava is the cultural, political and economic centre of Slovakia and, having been chosen as the country’s capital in 1993, is one of the youngest capital cities in Europe. It is home to the Slovak president, the Slovak executive branch and the parliament. In addition, the city houses many cultural and educational institutions, such as museums, universities, theatres and galleries. It is also one of Slovakia’s business hubs, hosting the headquarters of large and globally influential institutions such as Volkswagen, Siemens, IBM and Deloitte.

The demand for hotel accommodation in Bratislava is mostly generated by business travellers from neighbouring and other European countries. The city experiences high occupancies from Monday to Thursday and low occupancies over the weekend. The summer months, however, do attract some leisure visitors, primarily from neighbouring countries. The proximity of Bratislava to Vienna makes it an obvious overflow destination for demand in search of lower rates. However, the city still lacks a proper convention centre, which makes it difficult to promote it as a MICE destination and attract conference and convention demand.

The travel and tourism industry contributed in excess of 6% to the country’s total GDP in 2017 and 6% of total nationwide employment, hence proving to be a significant sector for the economy of Bratislava and Slovakia as a whole. Whilst GDP and employment contributions are both forecast to continue to grow proportionally, total GDP growth for the country over the next five years is expected to slow down year-on-year. On the other hand, consumer price inflation is expected to eventually drop to 2% in the coming years and remain stable. Whilst this might entice investors, the spiking interest rates which are due to almost double in the five-year forecast will possibly cause prudent investment if seeking local financing.

After a few challenging years, owing primarily to the global economic crisis and the increase in supply which now totals 120 hotels, performance strongly recovered, with double-figure growth in 2015 and 2016, at around 15.0% on average. In 2017, Bratislava saw continued growth, but at a slower pace in terms of RevPAR growth. The affordability and location of this market were key in achieving this strong recovery, although this followed several years of declining RevPAR, meaning RevPAR is still far from its 2007 levels. Hotel performance statistics for 2018 recorded a healthy average rate rise in Bratislava, which likely contributed to the significant drop in occupancy levels; nevertheless, RevPAR has remained stable at an almost inflationary growth rate.

Hotel supply in Bratislava grew at a compound annual rate of 14.0% from 2004 to 2012, before becoming stagnant in the years that followed. In 2016, there was a reported decrease in total hotel rooms available, which was partly due to the temporary removal of a number of rooms from Bratislava’s stock given the renovation of properties such as the Park Inn by Radisson Danube Bratislava Hotel.

Regarding investor appetite in Slovakia, the average annual hotel investment volume in the country for recent years since 2012 has been just under €17 million and never been in excess of €20 million, placing Slovakia as the second least active country in the CEE region, after Romania, in terms of hotel investments. Overall, hotel values in Bratislava increased by 2.3% in 2018, as recorded in our 2019 European HVI.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Bratislava RevPAR Change (€Euro)

Bratislava RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Magali Castells
[email protected]
  • +44 20 7878-7710 (w)
  • +44 7 850205149 (m)