Poland checks in
The hotel market is gearing up to build on Poland's economic boom and increased efforts to promote its cities, hoping to profit from growing numbers of both domestic and foreign tourists.
According to research from Colliers, arrivals from abroad in Poland were up 26 percent last year and every major city reported higher occupancy rates and demand for rooms. Kraków remains fixed in the lead, with close to a 75-percent occupancy rate for its five-star segment.
However, Warsaw is catching up with its rival. The capital is gaining in appeal for tourists and is solidifying its presence as a major business hub for the Central European region. Thus hotels like the Le Royal Méridien Bristol and Gromada are refurbishing their existing properties to compete with upscale offers from companies like Hilton, which recently opened its first hotel in the city and plans to build 11 more across Poland over the next five years.
Poland's hotels currently offer over 60,000 rooms, and that number is rising steadily as operators like Hilton, Radisson SAS, Orbis and Andel's increase their development activities this year and next. Zbigniew Bugaj, an analyst at the Hotel Market Institute (IRH), says that an increasing number of foreign investors are entering the Polish market in anticipation of the impending economic and tourism boom.
Austrian undertakings
This week Vienna-based Warimpex is opening its four-star Andel's Hotel in Kraków, a city which, according to Christoph Salzer, the regional director for Warimpex, "continues to serve as the model for the hospitality sector where business clients are served during the week and leisure tourists during the weekend."
London architects Jestico + Whiles are responsible for the elegant design of the hotel, which is centrally located in Kraków's Old Town close to many tourist districts, the Central Station and several major shopping venues. The hotel offers 159 rooms decorated in a contemporary style and equipped with modern technology, including WLAN and full climate control. The hotel also offers all the typical amenities of an upscale hotel, including five conference centers (totalling 450 sqm) and 24-hour room service.
Next year, Warimpex is also opening the much-anticipated four-star Andel's Hotel in Łódź at the site of the Manufaktura shopping and recreation center. The firm also has several other upscale projects in the pipeline for the next three years, including a Hotel Angelo in Katowice and a Hotel Le Palais in Warsaw.
The Euro 2012 effect
Poland's participation in events like Euro 2012 will give a clear boost to the market. Alex Kloszewski, head of Colliers' hotel department and chairman of the Warsaw Destination Alliance, anticipates that the games will spur Poland's best growth ever. "Approximately 100 hotels will be built in the next 60 months throughout Poland. These hotels will serve the needs of the sporting event and, further down the line, they will also meet projections for clients traveling to Poland for both business and pleasure," says Kloszewski.
"With Poznań being one of the cities hosting Euro 2012, our choice for the location of the IBB Andersia, planned to open at the end of this month, is especially sound. Infrastructure development in cities like Poznań will bring a number of advantages to the hotel sector and beyond," says Hiren Prabhakar, managing director of IBB Hotels for Poland and Germany.
Katarzyna Kołodziejczyk, director of the IBB Andersia Hotel adds, "The activities of the Poznań International Fair Corporation were a major factor in our decision to establish our project in the city. There is still a strong demand in Poznań for more high-standard hotels for business travelers from Poland and abroad." Radisson SAS will also open a hotel in Poznań this year, offering 250 rooms on the landmark site of a former monastery in the center of the city.
Alternative destinations
Kloszewski finds that cities such as Łódź, Katowice, Szczecin and various vacation destinations along the Baltic coast are also up-and-coming hotspots for hotel development. Gdańsk, for example, is set to see a great number of new four-star projects from IBB and Radisson SAS hotels in centralized locations in the city's Old Town. The IBB Gdańsk is a boutique hotel project with 54 spacious rooms and apartments situated right across from the city's legendary Neptune fountain. IBB's project is scheduled to open in 2008 while the SAS Radisson Gdańsk will begin operating by the end of this year, offering 135 rooms and apartments. Both hotels will provide high-standard conference facilities.
In terms of holiday and recreational hotspots, the Mazury region is also likely to see some high-standard hotels and resorts. Additionally, an increasing number of full-service luxury spa centers are cropping up in traditional spa cities and towns like Nałęczów and Krynica. There is a foreseeable trend in golf-and-conference centers on the outskirts of Warsaw for those looking to mix a little pleasure in with their business. Smaller cities like Rzeszów will also see the development of upscale hotel projects in the next few years.
Budget boom
Warimpex's Christoph Salzer points out that while there is great potential for three-, four- and five-star hotels, there is also increased demand for quality budget hotels. "This has led us to enter a joint venture with Louvre hotels to expand the Campanile brand across the CEE region, with a strong focus on Poland," he says.
Salzer cites the potential for up to 30 new hotels across the country in the next two to four years. The Rezidor Hotel Group - which manages Radisson SAS hotels - and the Hilton Hotel Corporation have announced plans to open mid-market hotels.
IRH's Bugaj says, "Poland will see some more affordable offers from NH and Domina and partnerships such as Orbis/Accor." Orbis has announced plans for a number of hotel developments under their various brands, such as Ibis, and plans to hold a 55-percent market share of the low-cost segment by the end of 2010.
As Poland's economy grows, tourism is sure to prosper. However, according to IRH's Bugaj, Polish cities must be promoted more aggressively to attract tourists. "Foreign investment is bringing businesspeople to Poland and the biggest cities need quality hotels to accomodate them," he says.
