Hotel occupancy up, ADR down – Horwath HTL

While hotel occupancy figures in Poland increased last year, a growth driven mainly by domestic traffic, average daily rates fell by 1.5 percent to €61, according to a report published by Horwath HTL. “Domestic guests account for approx. 70 percent of hotel rooms sold. On the one hand, investors perceive this as a stable base, but on the other hand, this market segment is very price sensitive,” said Janusz Mitulski, partner at Horwath HTL and vice president of the Chamber of Commerce of the Polish Hotel Industry. “This, together with the rising number of hotels (approx. 100 hotels per year), makes it more difficult to increase incomes and profits,” he added. Hotel occupancy increased by 1 percentage point to 65.9 percent over the past year, according to STR Global, cited in the report. Central Statistical Office (GUS) data point to a 10.7 percent increase in the number of tourists over the period of January-October 2014 (most recent available data) compared to the corresponding period of 2013. However, the second half of the year saw a lower number of tourists from the former Soviet republics, due to the Ukraine conflict. At the end of 2014, there were 2,459 hotel facilities with over 120,000 rooms and suites.