National hotel base is growing

Details: Published on Wednesday, 17 May 2017 00:00; Written by AS

The number of hotels in the major cities and tourist destinations in Poland is growing. Over 20 new ones are planned in Warsaw alone

Hotel industry in Poland is booming. Walter Herz experts estimate that the growth of the hotel business cycle may last a few more years. Our country is an increasingly popular destination among the foreign tourists. Our domestic demand is also growing. Moreover, the number of people visiting Poland for business purposes is growing. The hotel sector sees good results in terms of occupancy and rates. According to STR Global data, last year's revenue per available room in Poland increased by 11 per cent, ranking among the best indicators in Europe.

High interest in hotel services is motivating the investors. The market sees expansion of the existing hotel networks, as well as new brands such as Moxy, Radisson Red, Autograph Collection, Vib, or Raffles Hotels & Resorts, enumerate Walter Herz Hotel Property specialists. Marriott and Hilton are expanding their establishments. What is more, Best Western and the Orbis Group announce including many more facilities in the near future.

Market share of global brands is growing

Specialists note that our market experiences growth of the global brands, due to the fact that their portfolio includes franchised existing hotels. Walter Herz analysts inform that the number of lease contracts offered by international hotel operators is also increasing. The trend of adapting historical industrial buildings into commercial purposes, which was initiated in Łódź, is also visible, and is currently being continued in Cracow, Warsaw and Poznań. Hotel facilities are often built nearby the airports and business centers, and are often a part of multifunctional complexes.

According to Walter Herz analysts, there are currently less than 2.7 thousand officially categorized hotels in Poland, over a half of which are three-star establishments. Last year our market gained 106 classified hotel facilities. Most hotels were established in provincial cities, including Cracow, Gdańsk and Warsaw. The most comprehensive development plans in the nearest future concern the Warsaw market, where over 20 more facilities will be built.

Warsaw with the greatest prospects

For years, Warsaw has had the highest possible external credit rating, and according to Financial Times it is Europe's fourth most business-friendly city. Hence, as the Walter Herz specialists admit, banks are willing to finance capital investments, so that over a dozen or so hotel facilities are planned to open in Warsaw over the next two years.

Raffles, a prestigious European Hotel on Krakowskie Przedmiescie Street, will soon be re-launched. It is to be the most luxurious hotel in Poland. The hotel will offer 103 suites, SPA, meeting rooms, luxurious shops, restaurants and offices. The famous Warsaw Prudential will also be rebuilt. Whe building, which was taken over by the Likus family, is going o become a luxurious hotel.

According to Walter Herz specialists, new hotel facilities are also planned on Smolna Street next to the de Gaulle Roundabout and in the vicinity of the Royal Castle in the Old Town in the Branicki Palace on 6 Miodowa Street. A five-star Renaissance by Chopin International Airport will also be commissioned soon, whereas the portfolio of Marriott International chain will gain another airport location – Moxy hotel in Pyrzowice (Marriott International chain), which will include a total of 330 rooms.

Many brands with new projects

In addition, next year, at the intersection of Twarda and Żelazna Streets in Warsaw, the Holiday Inn chain will be offering 254 rooms. And the second Holiday Inn hotel with 217 rooms is to be built nearby Zachodni Railway Station, right by the bus station. At 38 Tamka Street, in front of the Chopin Museum a lower class hotel - Motel One is also emerging.

The Moxy hotel, which will stand on al. Wilanowska Street, near Warsaw's Galeria Mokotów mall, will offer 200 rooms. Whereas Moxy Warsaw Praga will provide accommodation in Koneser Center in Warsaw's Praga district. The opening of the three-star Four Points by Sheraton hotel with 192 rooms is planned in the Mokotów district, at the intersection of Suwak and Konstruktorska Streets by the end of the next year. And another hotel project in this district will belong to the Focus Hotels network, which is planing to build the facility with 238 rooms and a conference room for 800 people.

Walter Herz representatives inform that another building that will enrich the Warsaw offer will be a hotel located near the Expo XXI Conference and Exhibition Center in Warsaw. Hotel 52 will offer 468 rooms.

In the center of Warsaw, the minimalistic Puro hotel is to be opened. It will be located at 5/7/9 Widok Street. While the Orbis Group is planning on building ibis Styles Warsaw, which will include 178 rooms.

Cracow revitalization

New hotel facilities in Cracow are mostly adapted buildings of historical character. In this location, near the Wawel Castle, on Stradomska Street will be the first hotel in Poland built by Marriott International's exclusive Autograph Collection Hotels. I will provide 125 hotel rooms, SPA and suites.

The fifth hotel from the B&B Hotels Polska chain will be constructed at the foot of Wawel Castle. The first Radisson Red hotel in Poland with 230 rooms, initiated by Carlson Rezidor, will appear in the Unity Center complex located near the Mogilskie roundabout. It will also be the highest building in Cracow with 102,5 meters.

Walter Herz experts admit that the Tri-City and the other coastal towns are also very popular among the investors. Last season, hotels in this region have had record-breaking results. This is due to the fact that recently Poles are more keen to vacation in the country and the number of foreign tourists, mainly from Germany and Scandinavia, is growing. According to STR Global data, in 2016 the average revenue per room in the Tri-City was the highest among the largest cities in Poland.

Spichrzów Island is hosting more and more hotel facilities

By the end of next year, investors are planning to introduce about 2800 rooms to the Tri-City hotel market. The Orbis Group wants, for example, to expand their network in the economic segment of the Tri-City. On Spichrzów Island, construction work on the implementation of the Ibis Budget Gdańsk Posejdon has already started. Walter Herz experts emphasize that the island is one of the most attractive places for commercial investments in Gdańsk.

Among the largest hotel investments on the island, the specialists mention the 4-star Deo hotel, located right on the Motława River, on Stajgiewna and Chmielna Streets. The property is part of the Deo Plaza Wyspa Spichrzów project, which also includes the construction of residential and rental apartments. Hotel Number One, which offers 172 rooms has recently been built within the Nowa Motława Complex. Walter Herz representatives also mention the planned construction of Puro hotel on Spichrzów Island's Stągiewna Street.

Hotels in the Old Town and Oliwa district

New hotels are also planned in Gdańsk's Old Town. In the three tenements on Gdańsk's Długi Targ square, a three-star IBB Długi Targ hotel with 90 rooms and retail and service area will be opened. In Gdańsk's Oliwa district, on Grunwaldzka Street Hampton by Hilton hotel is also under construction. It will offer 100 rooms. Another facility of this brand in Gdańsk - Hampton by Hilton Old Town - will be commissioned on Długa Street.

A 4-star Mera Spa hotel with 145 rooms, two restaurants, a conference center, three indoor pools and an open-air rooftop pool is to be opened by mid-year in Sopot. The facility will operate under the Marriott brand. The Group is planning another hotel in Gdynia at the junction of Kosciuszko Square and the southern pier where Nowa Marina Gdynia complex is to be built. Investors plans also include a five star Radisson Blu luxurious hotel in Sopot with 220 rooms. It is to be opened in two years.

Hotel in the piano factory

An unusual investment is also emerging in Kalisz. The historic piano factory will turn into Hampton by Hilton Kalisz hotel, which will offer almost one hundred rooms as well as conference rooms, fitness center, swimming pool and SPA. The hotel is part of the Calisia One hotel, business and culture center.

Austrian Vienna House Group under the name of andel's by Vienna House is constructing a hotel in Łódź. The group is already planning further projects. Representatives of the company talk about preparations for signing a hotel contract in Warsaw.

In Poznań, the new 3 star Focus Hotel will offer 94 rooms, including premium suites with panoramic views of the city, as well as conference, dining and leisure facilities. The opening of the hotel is scheduled in the first half of next year. According to Walter Herz representatives, this is this year's fourth decision of the Polish Focus Hotels network concerning tenancy. So far FH has informed about similar agreements related to the facilities in Sopot, Warsaw and Bydgoszcz.

The Hampton by Hilton hotel is also under construction in Olsztyn, as one of the five projects currently implemented by the Hilton hotel chain in Poland. The Olsztyn hotel, located at the intersection of Głowackiego and Piłsudskiego Streets, will offer 105 rooms.