Europe -  Bratislava, Slovakia

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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.

Bratislava has seen both domestic and foreign visitation grow in the last few years. From 2015 to 2019, total visitation increased by a substantial compound annual growth rate (CAGR) of 7.0%, from little over a million visitors a year in 2015 to close to 1.4 million visitors in 2019. During that period, the occupancy of hotels in the city grew on average by 2.0%, while average rate saw a strong increase of above 7.5%. This resulted in a robust RevPAR CAGR of 10.0%. The main source markets for Bratislava are the domestic market, followed by the Czech Republic, Germany, the UK and Poland. As a result of the COVID-19 pandemic, Bratislava saw a severe contraction in tourism, much as the rest of Europe.

The city is expecting to see just one new hotel opening in the next couple of years. The 162-room Mövenpick Bratislava is currently in the planning stage and is expected to enter the market in 2022, providing the timeline of the project is not impacted by the pandemic. Regarding investor appetite in Slovakia, the average annual hotel investment volume in the country in recent years has been just under €17 million and has never been in excess of €20 million. In 2020, there were no hotel transactions in the city.

Following the pandemic and the significant downturn in hotel trading, hotel values in Bratislava decreased by close to 20.0% in 2020, as recorded in our 2021 European Hotel Valuation Index. Exposure to both international travel and business demand, coupled with low market liquidity, resulted in a considerable decrease in hotel values. However, the city’s modest pipeline should indeed make it easier for hotel occupancy levels to recover faster once demand starts to return to the market.

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%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)