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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 50.0% of the country’s air passenger traffic (a record 18.8 million passengers in 2019, a 6.0% increase on the previous year). Warsaw Chopin Airport is the busiest airport in the newer EU member states and has become a major hub in Eastern Europe. In 2017, the government adopted a resolution outlining its €8 billion plans for a new airport, Solidarity Transport Hub, which will integrate air, rail and road transport around 40 km from Warsaw. Construction is yet to start as at the time of writing in March 2022, and the planned opening is set for 2027. During the first stage, the airport is expected to handle 45 million passengers a year, with its target capacity being 100 million passengers a year.

Warsaw has the seasonality of a typical business-demand driven destination, with the peaks in April, May, September and October, while the summer and winter months are quieter. Over the last decade, occupancy for this market has increased from the high 60s to mid-to-high 70s. Increased demand has however failed to result in increased rates, which have stagnated over this period (if considered in euro terms). The currency fluctuations of the Polish zloty have played into this dynamic. The most important source market for Warsaw is the domestic market, constituting close to 65.0% of the overall arrivals in 2019. Other main international markets are the USA, the UK and Germany. Following the 2020 contraction in hotel trading, in the second part of 2021 Warsaw experienced a good pick up in volume on the account of robust domestic demand, however, the marketwide average rate remained slightly below the 2020 levels.

In terms of new supply, Warsaw is expecting to see some 5,000 new rooms enter the market by the end of 2025 (a 24.0% increase), with around 60.0% of those being in the midscale and upper-midscale class. Some notable new hotel openings include the 94-room Autograph Collection Warsaw Miodowa (June 2022), the 200-room MOXY Wilanowska Warsaw (February 2023), the 448-room Royal Tulip Warsaw (May 2023), and the 264-room AC Hotels by Marriott Warsaw Reduta Poland (July 2024). In terms of investment, two hotels transacted in 2021, with a volume of around €35 million.

In 2021, hotel values in Warsaw increased by around 2.0% in euro prices and 5.0% in local currency, as indicated in our Hotel Valuation Index 2022. Whilst the substantial new supply is expected to slow the recovery of this market somewhat, the city’s reliance on domestic demand should, on the contrary, be good news for a rebound of performance in the short to medium term.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

Change In Value For Market: (€Euro)

Warsaw RevPAR Change (€Euro)

Warsaw RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA Senior Director [email protected] +44 20 7878 7722 (w) +44 0 7725781037 (m)