Warsaw hotel market a bad bet for traders
The group's "Hotel Investment Survey" found that "unfounded optimism" in recent times has led investors to adopt a more realistic approach to many European cities.
"The situation in Warsaw will undoubtedly get better," said Jones Lang LaSalle Hotels Managing Director Mark Wynnesmith, "but investors aren't willing to predict when. That's the worrying thing."
Existing oversupply of hotels in the Polish capital has been made worse by the sharp decreases in demand resulting from the Iraq war, the SARS virus outbreak and global economic uncertainty. The result is higher yield requirements demanded by investors. Prague and Budapest fared better in the survey, with both cities earning "hold" recommendations.
"The situation in Warsaw will undoubtedly get better," said Jones Lang LaSalle Hotels Managing Director Mark Wynnesmith, "but investors aren't willing to predict when. That's the worrying thing."
Existing oversupply of hotels in the Polish capital has been made worse by the sharp decreases in demand resulting from the Iraq war, the SARS virus outbreak and global economic uncertainty. The result is higher yield requirements demanded by investors. Prague and Budapest fared better in the survey, with both cities earning "hold" recommendations.
