First signs of Wrocław's hotel prosperity
Poland's membership of the EU should help attract more foreign investors to Wrocław, which is being promoted quite aggressively by the city council, particularly in German-speaking countries. The success of the promotion is visible if measured in terms of foreign companies currently moving their operations there. In 2000, there were about 121 foreign companies registered in the city, but as of December 31 last year, their number had exceeded 2,000. Though this growth in the number of foreign enterprises working in Wrocław has not yet directly resulted in increased hotel occupancy rates, the majority of hotels are, however, experiencing upward trends.
The greatest beneficiary of this prosperity is the Holiday Inn Wrocław, which opened in 2001, the worst time for hoteliers both globally - because of the events of September 11 - and domestically. Low GDP, a limited number of conferences and summits and rising unemployment were all factors that translated into poor occupancy rates. Indeed, for the Holiday Inn in that year, they were just 27 percent and remained at 30 percent throughont 2002 and 2003. The forecast for this year, however, is around 45 percent, but this still lags well behind the occupancy rates for the Holiday Inn in Warsaw, for example. In Knyrek's opinion, growth in the hotel market over the next two to three years will be unevenly distributed. Two and three star hotels will enjoy the highest rates, as they have the largest number of rooms, with average occupancy rates of 40-60 percent. Two star hotels claim only a 19 percent market share in Wrocław, but their occupancy rates exceed 50 percent in centrally located buildings.
Unlike the situation for four star hotels, which has reached saturation point in Wrocław, the two and three star sector still has room for further growth. The Holiday Inn itself is planning to develop its chain of two and three star hotels in Poland under the 'Express' brand name. Knyrek believes that investors will also be looking to increase the number of four star hotels in Wrocław after 2005. Indeed, a new player is about to take its place on the market, with the System hotel chain set to extend its operations to the city after its success in Kraków. System is, incidentally, the first Polish hotel chain to operate along similar lines to an investment fund, whereby private investors can acquire a room for zł.98,000 with a guaranteed fixed income of zł.14,000 per year. If, however, there is no increase in the number of tourists and business people in the near future, a price war is likely to break out among hoteliers in the city, which means four star hotel rooms will end up being offered for the price of three star accommodation.
Number of hotel rooms in Wrocław
****
DORINT WROCŁAW 210
RADISSON SAS HOTEL WROCŁAW 162
HOTEL WROCŁAW HOLIDAY INN 287
MARIA MAGDALENA QUBUS HOTEL 83
PARK PLAZA 177
ART. HOTEL 80
Total: 999
***
MERCURE WROCŁAW PANORAMA 152
CAMPANILE 110
PRIMA BEST WESTERN 79
NOVOTEL 145
GEM 57
POLONIA 145
EXBUD 72
TECHMA 20
ZAUŁEK 18
Total 798
**
MONOPOL 71
MOTEL Hotel Orbis 76
BURZA 20
WKS Śląsk 70
TUMSKI 57
WIENIAWA 125
Total 419
Total ****+***+** 2,216
The greatest beneficiary of this prosperity is the Holiday Inn Wrocław, which opened in 2001, the worst time for hoteliers both globally - because of the events of September 11 - and domestically. Low GDP, a limited number of conferences and summits and rising unemployment were all factors that translated into poor occupancy rates. Indeed, for the Holiday Inn in that year, they were just 27 percent and remained at 30 percent throughont 2002 and 2003. The forecast for this year, however, is around 45 percent, but this still lags well behind the occupancy rates for the Holiday Inn in Warsaw, for example. In Knyrek's opinion, growth in the hotel market over the next two to three years will be unevenly distributed. Two and three star hotels will enjoy the highest rates, as they have the largest number of rooms, with average occupancy rates of 40-60 percent. Two star hotels claim only a 19 percent market share in Wrocław, but their occupancy rates exceed 50 percent in centrally located buildings.
Unlike the situation for four star hotels, which has reached saturation point in Wrocław, the two and three star sector still has room for further growth. The Holiday Inn itself is planning to develop its chain of two and three star hotels in Poland under the 'Express' brand name. Knyrek believes that investors will also be looking to increase the number of four star hotels in Wrocław after 2005. Indeed, a new player is about to take its place on the market, with the System hotel chain set to extend its operations to the city after its success in Kraków. System is, incidentally, the first Polish hotel chain to operate along similar lines to an investment fund, whereby private investors can acquire a room for zł.98,000 with a guaranteed fixed income of zł.14,000 per year. If, however, there is no increase in the number of tourists and business people in the near future, a price war is likely to break out among hoteliers in the city, which means four star hotel rooms will end up being offered for the price of three star accommodation.
Number of hotel rooms in Wrocław
****
DORINT WROCŁAW 210
RADISSON SAS HOTEL WROCŁAW 162
HOTEL WROCŁAW HOLIDAY INN 287
MARIA MAGDALENA QUBUS HOTEL 83
PARK PLAZA 177
ART. HOTEL 80
Total: 999
***
MERCURE WROCŁAW PANORAMA 152
CAMPANILE 110
PRIMA BEST WESTERN 79
NOVOTEL 145
GEM 57
POLONIA 145
EXBUD 72
TECHMA 20
ZAUŁEK 18
Total 798
**
MONOPOL 71
MOTEL Hotel Orbis 76
BURZA 20
WKS Śląsk 70
TUMSKI 57
WIENIAWA 125
Total 419
Total ****+***+** 2,216
