Europe -  Warsaw, Poland

For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

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 17 million passengers in 2018, 4.2 million more than 2016). Warsaw Chopin Airport is the busiest airport in the newer EU member states and has become a major hub in Eastern Europe. LOT Polish Airlines introduced two new connections from Warsaw Chopin in early 2019 with flights to Turin and London City. 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 is set to start in 2019 and end in 2027. Its target capacity is to be 100 million passengers a year.

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. However, occupancy decreased in 2018 owing to the new supply coming into the city. Average rate in euro terms stayed at just under €70 between 2014 and 2016, increasing to above €75 in 2017 and stagnating in 2018, mainly due to the currency dynamics of the Polish zloty.

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 3.0% 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 its many attractions and affordable prices. New air routes to Singapore, Moscow-Domodedovo, Turin and London City 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 added nearly 1,400 hotel rooms in 2018 and is adding a further 2,700 rooms between 2019 and 2021 (primarily in the four-star segment). This pipeline is likely to impact the occupancy of the existing supply. Major recent developments include the 103-room, five-star Raffles in the historic Europejski building, which reopened in June 2018; the 141-room Moxy Hotel Warsaw Koneser in January 2019; and the 164-room Vienna House Mokotow, which opened in February 2019. Hotels planned for later in 2019 include the 190-room Four Points by Sheraton Warsaw Mokotow in April and the 189-room Motel One (opposite the Chopin Museum) in May 2019. Furthermore, the InterContinental Warsaw is expected to finish the redesign of its rooms and suites in the second quarter of 2019, while Nobu Hospitality is expected to open the 120-room luxury lifestyle Nobu Hotel Warsaw in mid-2019. Radisson Hospitality has recently signed a deal to open the 267-room Radisson Red Warsaw in 2023.

The hotel transaction market is limited in Warsaw. The most recent transactions include the 350-room Sheraton Warsaw, bought by Patron Capital from Walton Street Capital in December 2018 for €90 million (€257,000 per room) and the 361-room, five-star Westin Warsaw (luxury), purchased by Qatar-based Al Sraiya Group in January 2017 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%

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)