{"id":764,"date":"2018-10-01T13:45:31","date_gmt":"2018-10-01T13:45:31","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=764"},"modified":"2018-10-01T13:45:31","modified_gmt":"2018-10-01T13:45:31","slug":"the-prices-in-hotels-across-cee-are-rising-18685","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/the-prices-in-hotels-across-cee-are-rising-18685\/","title":{"rendered":"The prices in hotels across CEE are rising"},"content":{"rendered":"<div class=\"hentry single links--red-green\">\n<div class=\"release-object-content\">\n<ul>\n<li><strong><em>Prague hotels are operating at nearly full capacity being the fifth main tourist city with the highest occupancies in Eu The rest of Central Europe closely follows.<\/em><\/strong><\/li>\n<li><strong><em>Poland with 15 transactions worth EUR 402 million in total was the second most active market<\/em><\/strong><\/li>\n<\/ul>\n<p>In Central and Eastern Europe*, hotel owners are experiencing record months in terms of average daily rates which was the primary driver of the double-digit RevPAR (Revenue per available room) growth recorded by central European cities in 2017. The growing trend was also seen in the first half of this year (H1 2018). The only exception was Warsaw where RevPAR dropped slightly due to declining occupancy, yet the prices of rooms increased as in other capitals. The higher room rates translated to notable gains in hotels\u2019 profitability which brought significant interests from investors. The lack of hotel properties available for sale and shortage of development sites in prime locations is turning attention to conversions of existing buildings into hotels. As the demand continues to grow and the development pipeline remains limited in most markets (except for Warsaw and Vienna), profitability is expected to stay strong also in the coming years.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/the-prices-in-hotels-across-cee-are-rising-18685\/#Central_Europe_capitals_among_the_highest_occupancy_levels_in_Europe_Prague_is_dominating_the_region\" >Central Europe** capitals among the highest occupancy levels in Europe, Prague is dominating the region<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/the-prices-in-hotels-across-cee-are-rising-18685\/#Investment\" >Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/the-prices-in-hotels-across-cee-are-rising-18685\/#Hotel_Development\" >Hotel Development<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Central_Europe_capitals_among_the_highest_occupancy_levels_in_Europe_Prague_is_dominating_the_region\"><\/span>Central Europe** capitals among the highest occupancy levels in Europe, Prague is dominating the region<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Having an 80% average hotel occupancy rate in 2017, Prague is ranked 5<sup>th<\/sup>\u00a0among markets with the highest occupancy in Europe.*** At the same time, it is the 10<sup>th<\/sup>\u00a0largest hotel market in Europe with over 35 thousand rooms, capturing more than 18 million overnight stays in 2017. Vienna continues to be the second largest market in the region, attracting over 15.5 million overnight stays in 2017 and taking 13<sup>th<\/sup>\u00a0place in terms of occupancy levels. The third biggest hotel market in the CE region is Budapest which occupies 10<sup>th<\/sup>place on the highest occupancy ranking list. It is less developed than Prague in view of its hotel products, hence there are opportunities for further expansion. Another city achieving one of the highest occupancies on the continent, precisely 7<sup>th<\/sup>\u00a0place, is Warsaw. Although a slight drop is expected for the end of 2018 due to the new supply. Overall, the occupancy levels in the key hotel markets across Central Europe have reached very robust levels, leaving behind several major tourism destinations such as Madrid, Milan or Rome. The only exception is Bratislava that did not get into the top 20.<\/p>\n<p><em>\u201cThe rising demand trend is expected to continue, although some cities are likely to experience a milder growth in the following years, as they become more expensive and\/or reach the full capacity during the peak season. Nevertheless, the growing trend is anticipated to continue, driven by new demand sources, particularly from Asia and Middle East,\u201d\u00a0<\/em>says\u00a0<strong>Bo\u0159ivoj Vok\u0159\u00ednek<\/strong>, Partner, Strategic Advisory &amp; Head of Hospitality Research EMEA at Cushman &amp; Wakefield.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-768\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/ceny-za-hotele.png\" alt=\"ceny za hotele\" width=\"634\" height=\"437\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/ceny-za-hotele.png 634w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/ceny-za-hotele-300x207.png 300w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/ceny-za-hotele-100x70.png 100w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/ceny-za-hotele-218x150.png 218w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/ceny-za-hotele-609x420.png 609w\" sizes=\"auto, (max-width: 634px) 100vw, 634px\" \/><\/p>\n<p>To compare RevPAR growth, being the key performance metric, for the first half of 2018 with the same period in 2017, a positive trend can be seen throughout the whole region, except Warsaw. The leading position is held by Sofia where RevPAR grew by 19.0%, albeit from a relatively low base. The Bulgarian capital was followed by Budapest (5.5%), Bucharest (4.7%) and Bratislava (4.6%). In Prague and Vienna RevPAR grew slightly over 2%.****<\/p>\n<figure id=\"attachment_767\" aria-describedby=\"caption-attachment-767\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-767\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-200x300.jpg\" alt=\"David Nath, Head of CEE Hospitality Team at Cushman &amp; Wakefield\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-768x1150.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-684x1024.jpg 684w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-696x1042.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-1068x1600.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-280x420.jpg 280w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath-1920x2876.jpg 1920w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/david_nath.jpg 2003w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-767\" class=\"wp-caption-text\">David Nath, Head of CEE Hospitality Team at Cushman &amp; Wakefield<\/figcaption><\/figure>\n<p><em>\u201cThe occupancy levels in many CE markets are reaching peak levels and room rates are approaching those seen in Western Europe. This somewhat reduces the room for a more aggressive RevPAR growth, that we witnessed in 2017. Some markets are also starting to feel the impact of new supply (i.e. Warsaw) plus hoteliers also point out the increasing competition from the shared accommodation platforms such as AirBnB.\u201d\u00a0<\/em><em>\u00a0<\/em><strong>David Nath<\/strong>, Head of CEE Hospitality Team at Cushman &amp; Wakefield.<em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investment\"><\/span>Investment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investment demand hit a record high in 2017, totalling EUR 1.7 billion with 67 transactions as opposed to 1.3 billion in 2016 with 56 transactions recorded in core CEE hotel investment markets. The highest volume of transactions was again seen in Austria, in total EUR 791 million. The second most active was Poland with 15 transactions worth EUR 402 million in total. The Czech Republic had a very good year with over EUR 235 million being transacted in the hotel industry in 2017, only a slight drop from the previous record breaking year when the total volume of transactions was 292. Surprisingly, Romania closely followed with nearly EUR 200 million in total investment volume.<\/p>\n<p>Although during H1 2018 the total volume for transactions reached only EUR 0.5 billion, it is expected that the second half of the year will see considerable improvements.<\/p>\n<figure id=\"attachment_766\" aria-describedby=\"caption-attachment-766\" style=\"width: 200px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-766\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-200x300.jpg\" alt=\"Frederic Le Fichoux, Head of Hotel Transactions - Continental Europe\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-768x1150.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-684x1024.jpg 684w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-696x1042.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-1068x1600.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-280x420.jpg 280w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux-1920x2876.jpg 1920w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/frederic_le_fichoux.jpg 2003w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-766\" class=\"wp-caption-text\">Frederic Le Fichoux, Head of Hotel Transactions &#8211; Continental Europe<\/figcaption><\/figure>\n<p><em>\u201cAll CEE markets have been experiencing an economic and tourism upturn which attracts interest from investors seeking higher income growth opportunities. Despite this, the first half of 2018 has seen only a limited number of transactions due to the lack of properties available for sale, sometimes too high expectations or hesitations on the sellers\u2019 side as they struggle to find opportunities to reinvest their capital.\u201d<\/em>says\u00a0<strong>Frederic Le Fichoux<\/strong>, Head of Hotel Transactions &#8211; Continental Europe<\/p>\n<figure id=\"attachment_765\" aria-describedby=\"caption-attachment-765\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-765\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-200x300.jpg\" alt=\"Maria Zieli\u0144ska, Senior Hospitality Advisor, Cushman &amp; Wakefield\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-768x1152.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-683x1024.jpg 683w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-696x1044.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-1068x1602.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-280x420.jpg 280w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/10\/maria_zielinska-1920x2880.jpg 1920w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-765\" class=\"wp-caption-text\">Maria Zieli\u0144ska, Senior Hospitality Advisor, Cushman &amp; Wakefield<\/figcaption><\/figure>\n<p>\u201cIn 2018, the growth of KPIs on the Polish hospitality market has not been as rapid as in previous years. Warsaw has witnessed a slight decrease in occupancy levels and RevPar, which was caused mainly by the new supply of approximately 1,200 rooms delivered to the market between H1 2017 and H1 2018. With a strong development pipeline, the city is still catching investors\u2019 eye.\u201d said\u00a0<strong>Maria Zieli\u0144ska<\/strong>, Senior Hospitality Advisor, Cushman &amp; Wakefield.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Hotel_Development\"><\/span>Hotel Development<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>2019 is expected to be an active year with almost 5,000 rooms to be added to the core markets. The openings will, for example, include 7 Ibis hotels in Poland.<\/p>\n<p>Overall, there are more than 13,000 rooms that are expected to be added to the capital cities of the CEE region within the next three years, in the categories ranging from midscale to luxury. The development pipeline is especially strong in Vienna and Warsaw. While the overall new supply will bring a significant number of rooms into the CEE region, it will represent only 3.5% compound annual growth rate over the next 3 years, thus it is not expected to cause any immediate concerns.<\/p>\n<p>As the markets continue to recover and finance becomes more available in some of the markets, it is expected that the hotel development activity will grow further. However, in Prague, Budapest and Vienna it is relatively difficult to find available land or vacant properties in central locations that would allow for large hotel developments or conversions. These cities are therefore more protected than Warsaw, Sofia and Bratislava.<\/p>\n<p>At this stage, the demand is still outpacing supply in most markets, and we do not expect to experience any alarming oversupply situations in the near future.<\/p>\n<p>* CEE refers to the Czech Republic, Poland, Austria, Hungary, Slovakia, Bulgaria and Romania.<\/p>\n<p>** CE refers to the Czech Republic, Poland, Austria, Hungary, Slovakia<\/p>\n<p>*** Based on the reported performance data for 35 key hotel markets as published in the European Hotel Review by STR<\/p>\n<p>**** In EUR terms<\/p>\n<\/div>\n<\/div>\n<div class=\"push--bottom\">\n<div class=\"cf delta color-green\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prague hotels are operating at nearly full capacity being the fifth main tourist city with the highest occupancies in Eu The rest of Central Europe closely follows. Poland with 15 transactions worth EUR 402 million in total was the second most active market In Central and Eastern Europe*, hotel owners are experiencing record months in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8,7],"tags":[3002,2787,300,2788,151,62,156,2721,207,63,177,208,176,64,172,2732,65,173,66,2895,82,130],"class_list":["post-764","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate","category-reports-analysis","tag-airbnb","tag-austria","tag-borivoj-vokrinek","tag-continental","tag-cushman-wakefield","tag-czech-republic","tag-david-nath","tag-emea","tag-frederic-le-fichoux","tag-hungary","tag-madrid","tag-maria-zielinska","tag-milan","tag-poland","tag-prague","tag-ranking","tag-romania","tag-rome","tag-slovakia","tag-sofia","tag-warsaw","tag-western-europe"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=764"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/764\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/765"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}