Europe -  Bratislava

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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. Bratislava saw a severe contraction in tourism in 2020, which continued in 2021 without any substantial recovery in regard to tourist visitation and hotel trading.

The current hotel pipeline in Bratislava is very limited, with no ongoing developments when it comes to branded hotels. Regarding the investor appetite in Slovakia, the average annual hotel investment volume in the country in recent years has been around €20 million (pre-pandemic). In 2021, Bratislava saw one hotel transacting, the 175-room Mercure Bratislava Centrum, which exchanged hands for an undisclosed sum.

Bratislava experienced a slight increase in hotel values in 2021, of around 2.5%, as recorded in our 2022 European Hotel Valuation Index. Exposure to both international travel and business demand, coupled with low market liquidity could lead to a more prolonged recovery for this market. 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: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA

[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković

[email protected]
  • +44 20 7878-7724 (w)
  • +44 7 593572865 (m)
Mathilde De Bona

[email protected]