HOTEL MARKET IN POLAND table of content I. INTRODUCTION 3 IV. DEMAND II. SUPPLY Number of Polish and foreign tourists and their percentage share in the years 2012-2016 24 Supply of hotels and accommodation places in 2015 and 2016 and the change 2016/2015 4 Top 10 foreign tourist nationalities in Poland and the average length of stay in 2016 25 Supply of hotels and hotel rooms – business and tourist hotels 5 Number of accommodation places and number of tourists Supply of hotels and hotel rooms according using hotels in the years 2012-2016 26 to the hotel’s category 6 Hotel room occupancy rate in the years 2009-2016 Percentage of hotels according to the hotel’s category 10 and according to hotel’s category in 2015 and 2016 27 Percentage of hotel rooms according to the hotel’s category 12 Average hotel rooms occupancy in particular voivodeships and change in the occupancy rate 2016/2015 28 Number of chain and private hotels according to the hotel’s category 14 V. ADR and REVPAR INDICES FOR HOTELS IN THE 3-,4- AND 5-STAR CATEGORY 29 Hotel management structure according to type of operator 18 VI. MAJOR HOTEL TRANSACTIONS IN THE YEAR 2015-2017 30 Tourist and business hotels – number of rooms per hotel 20 VII. CONDOHOTELS IN POLAND 31 Average number of rooms in a hotel and share of chain hotels 20 VIII. FORECAST 33 III. SELECTED, PLANNED AND EXECUTED HOTEL INVESTMENTS 21 IX. GLOSSARY OF TERMS 34 2 INTRODUCTION Dear Sirs, We are presenting you our report on the hotel market in Poland. In the recent years What sets our report apart from similar publications is a vast collection of standar- this is one of the most dynamically developing segments of the Polish real estate dized information about the major hotel transactions, which have taken place over market. Continuously growing demand for hotel services driven by tourists and cor- the last two years. porate clients, both Polish and foreign, has translated into a considerable growth Let us not forget about the supplementary condo hotels market, which – over in the number of new hotel investments. Hotels are becoming a more popular the last years – has gained a lot of popularity both among developers as well as indi- investment option among individual and chain investors alike as well as developers. vidual investors. Being a part of investment processes while estimating the value of this kind of invest- ment allowed us to gain experience and broad knowledge about this particular seg- Based on the conducted analysis of the situation on the hotel market, the current ment of the real estate market. trends and conditions, we attempt to foresee the future development options for this real estate segment in Poland. Today we would like to share our knowledge with you by providing you with an aggre- gated report, including various graphs and charts. We have outlined the most impor- We hope you will enjoy reading our report. If you have any questions or you would like tant information that summarizes the current situation on the hotel market. to obtain an even more detailed analysis or another set of data, contact us. To start with, we carefully examine the current supply of hotels and hotel rooms in the particular voivodeships and the selected Polish cities. Due to the growing in- Dariusz Książak, terest of international hotel chains, we analyze the proportions between the num- Chairman of Emmerson Evaluation Sp. z o.o. ber of operating chain and private hotels. We outline the most important executed and planned hotel investments divided into business and tourist hotels as well as hotels in regional cities. We provide information about the hotel room occupancy rate and the current key fnancial indicators for this sector. 3 Supply of hotels and accommodation places 2015 2016 IN 2015 AND 2016 AND THE CHANGE 2016/2015 For a few years now, the Polish hotel market has been growing considerably both the number of accommodation places ofered across Poland. Last year such situation in terms of the number of tourists, the number of facilities, the occupancy rate as was recorded in over 80% of voivodeships. The largest number of new accommo- well as the sector’s fnancial results. Increased tourist trafc is related, among other dation places in 2016 appeared in the mazowieckie and małopolskie voivodeships things, to security concerns in other regions of Europe and the generally good fnan- (respectively 4.1 and 3.3 thousand) where Warsaw and Krakow generated, respecti- cial situation of Polish households. Every year Poland is visited by a growing number vely over 1/3 and 2/3 of fresh demand. A considerable number of accommodation of foreign tourists. The number of national tourists is growing even faster than that. places appeared also in dolnośląskie voivodeship (1.6 thousand), śląskie voivodeship These positive factors boost investment in the sector. The number of modern facilities (1.5 thousand) and lubelskie voivodeship (1.4 thousand). The remaining regions re- built both by private investors as well as chain hotels, including international ones, corded a less dynamic growth. In 2016, in łódzkie and lubuskie voivodeships the num- is growing. One can notice a considerable growth in the number of hotels, including ber of accommodation places did not change compared to 2015. POMORSKIE POMORSKIE WARMIŃSKO-MAZ. WARMIŃSKO-MAZ. 188 193 ▲ 19,119,9 ▲ ZACHODNIOPOM. ZACHODNIOPOM. tys. tys. 2,7% 105 113 ▲ 4,0% 12,5 13,2 ▲ ▼ 7,6% 16,5 16,7 ▲ tys. tys. 5,0% 124 120 PODLASKIE PODLASKIE tys. tys. -3,2% KUJAWSKO-POM. 1,3% KUJAWSKO-POM. 36 47 ▲ 9,1 10,1 3,8 4,7 ▲ ▲ ▲ tys. tys. 112 121 30,6% tys. tys. MAZOWIECKIE 23,7% 8,0% 11,3% MAZOWIECKIE 33,5 37,6 ▲ WIELKOPOLSKIE tys. tys. 220 251 ▲ WIELKOPOLSKIE 12,3% LUBUSKIE 230 229 ▼ 14,1% LUBUSKIE -0,4% 17,8 18,2 ▲ ▲ 4,6 4,6 tys. tys. 2,1% 63 65 tys. tys. 3,2% ŁÓDZKIE 0,0% ŁÓDZKIE LUBELSKIE LUBELSKIE 11,2 11,2 DOLNOSLĄSKIE 5,9 7,3 ▲ 113 113 ▲ DOLNOSLĄSKIE tys. tys. tys. tys. 0,0% 89 107 0% 24,6% 232 245 ▲ 20,2% 26,0 27,6 ▲ 5,6% ŚWIĘTOKRZYSKIE tys. tys. 6,4% ŚWIĘTOKRZYSKIE OPOLSKIE ŚLĄSKIE ŚLĄSKIE 7,4 8,0 ▲ ▲ OPOLSKIE 98 104 tys. tys. ▲ 198209 ▲ 6,1% 20,822,3 ▲ 7,7% 58 64 5,6% 3,2 3,8 ▲ tys. tys. 7,1% 10,3% PODKARPACKIE tys. tys. 16,2% PODKARPACKIE MAŁOPOLSKIE MAŁOPOLSKIE 135147 ▲ 9,4 10,0 ▲ 315335 ▲ 8,9% 34,8 38,1 ▲ tys. tys. 7,0% 6,3% tys. tys. 9,6% HOTELS ACCOMMODATION PLACES Source: Own study based on CSO data 4 number of hotels Supply of hotels and hotel rooms number of hotel rooms IN SELECTED CITIES BUSINESS HOTELS TOURIST HOTELS 15242 250 16000 60 4000 WARSZAWA 14096 KOŁOBRZEG 3481 3510 KRAKÓW 14000 ŚWINOUJŚCIE 200 WROCŁAW 12000 PÓŁWYSEP HELSKI 3000 POZNAŃ 40 ZAKOPANE 150 ŁÓDŹ 10000 KARPACZ KATOWICE 8000 BESKIDY 2000 TRÓJMIASTO 5933 100 4863 6000 1163 20 4000 769 1000 50 1828 2000 93 21 75 242 102 41 4 20 59 25 8 0 0 0 0 mountain region (Zakopane, Karpacz, Beskidy) MOUNTAIN AND SEASIDE REGION seaside region (Kołobrzeg, Świnoujście, Półwysep Helski) NUMBER OF HOTELS NUMBER OF HOTEL ROOMS PER HOTEL 45 41 300 40 250 250 35 30 200 177 25 17 18 150 20 14 94 15 11 100 78 82 54 51 10 5 36 3 3 3 50 26 5 1 15 0 0 5 number of hotels Supply of hotels and hotel rooms number of rooms per hotel ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 270 300 80 108 120 243 94 30 60 73 200 80 20 131 50 50 112 40 73 100 40 10 20 6 15 34 16 12 6 16 80 41 10 0 0 0 0 116 114 112 120 105 120 30 30 80 76 80 69 80 20 20 48 41 40 40 10 10 20 5 4 31 11 7 2 11 31 11 4 0 0 0 0 6 number of hotels Supply of hotels and hotel rooms number of rooms per hotel ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 180 15 181 200 10 200 8 10 108 6 82 82 79 100 79 100 4 5 47 2 2 9 15 5 6 6 5 1 0 0 0 0 50 150 122 40 106 100 30 58 57 20 50 10 14 45 13 7 0 0 7 number of hotels Supply of hotels and hotel rooms number of rooms per hotel ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 10 8 340 400 206 200 6 300 107 5 89 4 200 100 88 93 2 32 100 7 5 2 1 7 4 1 0 0 0 0 5 80 65 64 4 60 43 3 40 2 15 20 JASTARNIA 1 JURATA 1 2 4 2 0 0 CHAŁUPY 8 number of hotels Supply of hotels and hotel rooms number of rooms per hotel ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 78 79 458 15 80 20 500 57 60 15 10 44 44 40 10 250 5 20 5 27 43 1 4 14 6 4 4 17 2 0 0 0 0 10 182 200 8 150 6 97 100 4 55 36 50 SZCZYRK 2 17 WISŁA 2 9 10 6 1 0 0 USTROŃ 9 Percentage of hotels ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 3% 4% 15% 7% 6% 12% 9% 7% 11% 7% 19% 18% 19% 27% 19% 19% 52% 41% 53% 52% 6% 16% 7% 9% 18% 33% 16% 29% 28% 48% 33% 57% 10 Percentage of hotels ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 8% 8% 11% 14% 22% 22% 50% 30% 36% 54% JASTARNIA 45% JURATA CHAŁUPY 3% 4% 9% 7% 14% 14% 17% 21% 21% 32% 48% 36% SZCZYRK 74% WISŁA USTROŃ 11 Percentage of hotel rooms ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 1% 4% 6% 11% 8% 16% 8% 9% 23% 8% 8% 16% 30% 38% 26% 37% 39% 37% 33% 42% 5% 6% 13% 14% 30% 27% 25% 28% 51% 16% 45% 40% 12 Percentage of hotel rooms ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES 3% 3% 26% 25% 29% 40% 29% 45% 27% JASTARNIA 34% JURATA 39% CHAŁUPY 2% 2% 5% 6% 17% 10% 15% 53% 41% 26% 52% 26% 45% SZCZYRK WISŁA USTROŃ 13 private hotels Number of chain and private hotels chain hotels ACCORDING TO THE HOTEL’S CATEGORY IN SELECTED CITIES Despite the growing interest in the Polish market among international hotel networks, in Poland there is a large fragmentation in terms of the ownership structure.