Warsaw hotel market was leading the CEE-6 capitals in terms of recovery in 2023.
After a period when the Warsaw hotel market was falling short of the European recovery from the impacts of the COVID-19 pandemic and war in Ukraine all of its performance indicators increased significantly in 2023. RevPAR (in EUR) ended 26% above the level recorded pre-covid in 2019, in December 2023 as much as 39% above December 2019. Occupancy reached 73% last year, in December 2023 with 65%, surpassing the level of December 2019. The average daily rate was EUR 94 in 2023, 25% higher than 2019. The investment transactions volume in Poland grew by 82% year on year, reaching EUR 83 million. The Warsaw hotel market continued to prove its strength, resilience and attractivity.
Across the CEE-6 capitals, the average hotel occupancy level in 2023 lagged behind 2019 by 9%; however, the ADR surpassed it by 23%, resulting in a 12% RevPAR growth. The strongest RevPAR increase was recorded in Warsaw and Budapest. The positive trend is anticipated to persist in 2024, albeit at a more moderate pace. Increased cost of financing and ongoing economic and geopolitical headwinds in the region caused 2023 transaction volumes to drop by 18% compared to 2022. However, the volume invested by international buyers increased by 197% over the same period, illustrating the region’s rising attractiveness for inbound capital. Several significant deals are progressing since the year-end 2023, suggesting transaction volumes will rise in 2024.
