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Hotel performance paints a positive picture for Poland

Hotel performance paints a positive picture for Poland

Having successfully hosted a vast array of major sporting events, large trade fairs and conferences, Poland is on its way to becoming one of the leading tourism destinations in Europe. An increased investment in infrastructure has contributed to the country’s attractiveness as a destination with positive performance figures and strong demand growth being driven primarily by the leisure segment. 

Strong performances fuelled by growing demand

As a result of rising demand, occupancy rates have been growing for the past 11 months to reach 65.7% year-to-date (YTD) June 2015. Midweek occupancy increased by 7.2% YTD June 2015, however, the more notable increases were recorded over the weekends when occupancy grew by an astonishing +13.4%. Average Daily Rate (ADR) has been rising at a more moderate pace of +0.9% YTD June 2015, with a slight acceleration in Q2 2015 when it grew by +2.5%. Strong occupancy and muted ADR growth led to an almost double-digit RevPAR increase (+9.9%) for YTD June 2015 reaching PLN168.55.

Occupancy, ADR, RevPAR, Jan 2015 – June 2015, % Change

Comparison between Weekday & Weekend, June 2015, % Change

Supply & Demand, Jan 2015 - June 2015, % Change

RevPAR, Jan 2015 – June 2015, PLN

A closer look at Warsaw

During the first half of 2015, hotels in Warsaw benefitted from a significant number of visitors arriving for large trade fairs and conferences such as Wind & Water, Euro Gastro 2015, Electricity Warsaw 2015, Automaticon 2015 and various other events, each of which had attendance exceeding 5,000 delegates. The impact on hotels of some of these events was especially evident during May when Warsaw hosted the 2015 UEFA Europa League Final; the city achieved the highest monthly ADR of the year with PLN323.41 and the strongest ADR growth of the past 18 months (+4.6%).

Of all the Polish markets reported on by STR Global, Warsaw Airport achieved the highest RevPAR growth YTD June 2015 (+12.7%); which was driven by both occupancy and ADR. Between January and June 2015, absolute RevPAR grew from PLN94.6 to PLN167.0. This growth trend coincided with the increasing number of international arrivals into Poland, with Tourism Economics recording more than 17 million overnight tourist arrivals in 2014 alone. 

Other submarkets' hotel performance 

Outstanding increases in occupancy were achieved in Krakow (+8.6%) and the Tri-Town submarket of Gdynia/Gdansk/Sopot (+9.6%), where the leisure segment was most notably strengthened. In addition, weekends achieved higher levels of both occupancy and ADR for each month of 2015 compared to 2014, which drove to a high RevPAR increase (+9.9%).

All YTD June 2015 key performance indicators improved across all hotel classes, although at different rates. The Upper Midscale and Midscale Class experienced the strongest occupancy growth rate of +15.9% and +9.3% respectively, whereas ADR increases thrived amongst the Upper Upscale (+4.9%) and Luxury Classes (+7.1%).