Warsaw remains one of the strongest hotel markets in Central and Eastern Europe, according to the latest analysis by international advisory firm Cushman & Wakefield. In 2025, the Polish capital recorded one of the highest RevPAR growth rates among CEE-6 cities, while also leading the region in terms of hotel room supply growth.
Experts point to stable capitalization rates for prime hotel assets in Warsaw and growing investor activity across the region as factors supporting a positive outlook for the capital’s hospitality market.
Warsaw among regional growth leaders
According to Cushman & Wakefield’s “Marketbeat CEE-6 Hospitality H2 2025” report, the CEE-6 region recorded RevPAR growth of 8.9% year on year in 2025. This was supported by a 4.6% increase in ADR and a 2.7 percentage point rise in occupancy.
At city level, Bucharest and Warsaw achieved the strongest RevPAR growth in 2025, while Prague and Budapest maintained their leading positions in terms of the absolute level of this indicator.
“This is a very important signal for the Warsaw market. The fact that Warsaw is among the region’s leaders in terms of RevPAR growth, while also recording an increase in supply, confirms its role as one of the most important hotel markets in Central and Eastern Europe. The capital is now showing that its growth is not merely the result of a post-pandemic rebound, but reflects lasting demand fundamentals and the growing maturity of the hotel market. This is visible both in operational performance and in sustained investor interest,” said Maciej Prończuk, Senior Consultant, Hospitality & Alternatives CEE & SEE and hotel market expert at Cushman & Wakefield.
Warsaw leads new hotel supply in the CEE-6 region
In the second half of 2025, around 14 hotels and serviced apartment properties opened in the capitals of the CEE-6 countries, offering a total of approximately 1,130 rooms and apartments. According to Cushman & Wakefield, total room supply in the region increased by 2.7% year on year.
Warsaw made the largest contribution to this growth, with hotel room supply rising by 5.5%. It was followed by Budapest, where supply increased by 2.8%, and Prague, with growth of 2.2%. This trend is expected to continue in 2026, with Warsaw likely to remain the leader in further supply growth.
“Warsaw stands out both in terms of the scale of new supply and the quality of projects entering the market. This shows that the capital remains an important reference point for the development of the hotel sector in the region, attracting the interest of developers and investors implementing new projects,” added Prończuk.
Hotel investment market in the region accelerates
Hotel investment activity in Central and Eastern Europe rebounded strongly in 2025. Transaction volume increased by 170% year on year, reaching EUR 1.16 billion. According to Cushman & Wakefield’s database, 44 hotels comprising 6,974 rooms were sold across the region, with the average price per room reaching EUR 167,200.
Upper Upscale and Upscale hotels accounted for 63% of total investment volume, confirming that investors continue to focus strongly on higher-quality assets.
In Poland, hotel transactions in 2025 amounted to EUR 135 million and covered 12 hotels with a total of 1,652 rooms. In the second half of 2025 alone, hotel investment transaction volume in Poland reached EUR 54 million, representing a decline compared with the highly active second half of the previous year.
Selected larger transactions completed in Poland during this period included the sale of Four Points by Sheraton Warsaw Mokotów, a transaction involving a portfolio of two Noli Studios aparthotel properties, and the sale of a portfolio of two B&B hotels.
Capitalization rates remain stable
In 2025, moderate yield compression for prime hotel assets was recorded in Prague, Budapest and Bucharest. In Warsaw, as well as in Bratislava and Sofia, capitalization rates remained relatively stable. However, slight compression was observed for the best assets in the most attractive locations.
According to Cushman & Wakefield experts, stabilizing inflation, improved access to financing and capital inflows may support further yield compression in 2026.
“Although Warsaw remains a key hotel market in Poland, 2025 clearly showed that transaction activity is no longer limited solely to the capital. This is a signal that the market is developing in an increasingly balanced way, while investors are also looking more closely at regional locations,” commented Prończuk.
European investor sentiment supports hotels, but selectivity is rising
The hotel market in Poland, including Warsaw, is also supported by improving investor sentiment across Europe. According to Cushman & Wakefield’s latest “European Hotel Investor Compass” report, 86% of surveyed investors plan to allocate the same amount or more capital to the hotel sector in 2026 than in the previous year.
At the same time, the market is becoming increasingly selective. Investors are placing greater emphasis on asset quality, predictability of operating performance and ESG standards.
Cushman & Wakefield’s survey indicates that investors expect an average price premium of around 4.3% for hotels meeting the highest sustainability criteria. This means that for owners and investors, not only location and brand are gaining importance, but also the technical quality of the building, operational efficiency and the long-term resilience of the asset.
Artificial intelligence is also expected to play a growing role in shaping the hotel market. According to 81% of surveyed investors, AI will have a significant impact on the hospitality industry by 2030 or even earlier. Investors believe that the implementation of AI-based solutions is likely to have the most beneficial impact on limited-service hotels.
Overall, the outlook for Warsaw’s hotel market remains positive. Strong operational performance, continued supply growth, stable prime yields and sustained investor interest suggest that the Polish capital is set to retain its position as one of the leading hotel destinations in Central and Eastern Europe.
