Europe -  Warsaw, Poland

Warsaw, with its Old Town on the UNESCO World Heritage List, is the capital city of Poland. As the economic centre of Poland, the city is home to many national and international companies. Its economy is driven by a strong tertiary sector with key areas including retail and trade, business, transport, education and banking.

Warsaw is well connected to two airports and has direct railway and highway links to all major cities in Poland. Warsaw Chopin Airport is the largest airport in Poland, handling almost 50% of the country’s air passenger traffic (a record 15.8 million passengers in 2017, 3 million more passengers than 2016). Warsaw Chopin Airport is the busiest airport in the newer EU member states, and has become a large hub in Eastern Europe. New flights to Warsaw were launched by two airlines: Air Canada Rouge (connection to Toronto) and Air China (connection to Beijing). Warsaw benefitted from multibillion euro investments in road, railway, sports and hotel infrastructure prior to the UEFA European Football Championship in 2012.

The government recently adopted a resolution outlining its €8 billion plans for a new central international airport around 40 km from Warsaw as soaring passenger numbers are expected to see Warsaw Chopin Airport reach maximum capacity within a few years. Construction would start in 2019 and end in 2027.

Warsaw is one of the largest hotel markets in Poland in terms of hotel guest room numbers, and it’s the second largest market in terms of number of hotels, behind Krakow. The average occupancy percentage in Warsaw fluctuated between the low-to-mid 70s before 2015, and was performing in the high 70s at the end of 2017. Rate in euro terms stayed at just under €70 between 2014 and 2016 but increased to above €75 in 2017, mainly due to the currency dynamics of the Polish zloty and an overall steady increase in demand.

Warsaw has the seasonality of a typical business- and government-demand driven destination. The beginning of the year generally starts slow, with demand picking up in March and then slowing down again during the summer months of July and August. The city gets very busy during September and October, while December is normally relatively quiet.

Corporate demand in Warsaw has historically recorded strong growth rates, mainly on the back of Poland’s strong economy and robust household consumption. We anticipate corporate demand to increase again as Poland's GDP forecast is positive (above 3% projected on average for the next five years), Warsaw’s stock exchange remains busy and the real estate market is growing with several large-scale projects in the city. Warsaw has not yet established itself as a true international leisure destination, despite it having many attractions and affordable prices. New air routes to Singapore, Moscow-Domodedovo, Skopje and Podgorica are expected to facilitate access for new source markets. Overall tourist arrivals are steadily increasing, however, the market remains dependent on domestic demand (around 60% of total bednights).

To accommodate the increasing demand, the city is adding nearly 1,400 hotel rooms in 2018 and 2,200 rooms between 2019 and 2020 (primarily in the four-star segment). This pipeline is likely to impact the occupancy of the existing supply. Major developments include the 103-room, five-star Raffles in the historic Europejski building, scheduled for May 2018; the 189-room Motel One (opposite the Chopin Museum) planned for the end of 2018; the 164-room Vienna House Mokotow in the second half of 2018 and the 468-room ibis Styles in 2019. The InterContinental Warsaw is expected to be renovated in 2019 with a redesign of its rooms and suites. The hotel transaction market is limited in Warsaw. The most recent transactions include the 311-room Radisson Blu Centrum Hotel (upscale), bought by Europa Capital and WX Management Services in April 2017 for an undisclosed sum and the 361-room ,five-star Westin Warsaw (luxury), purchased by Qatar-based Al Sraiya Group in December 2016 for €56 million (€155,000 per room).

Change In Value For Market: (€Euro)

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%

Warsaw RevPAR Change (€Euro)

Warsaw RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)