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29. Dezember 2011 
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Central and Eastern Europe: Trophy assets in high demand
How have the hotel property markets in Central and Eastern Europe (CEE) developed in recent years? What we are to expect in this region in future? These are topics widely discussed on public platforms at the moment, including Hospitality Trends Bucharest, an event that took place at the Radisson Blu in the Romanian capital in November, and the Eurobuild CEE Annual Construction and Property Conference that was held at the Hilton Hotel in Warsaw, Poland, in December.
Lukas Hochedlinger, Business Development Manager of Christie + Co for Austria and Central & Eastern Europe, expects a positive development for the CEE hotel markets in general, although some of the markets in the region are still suffering from the long-term consequences of the latest financial and economic crisis.
While many western European hotel markets generated significant RevPAR growth in 2010, the hotel sectors in some of the CEE countries were still struggling with the results of the crisis. In 2011, however, the CEE region eventually recorded a better performance too, chiefly induced by occupancy growth.
In nearly all Eastern European key markets, occupancy growth from January until October 2011 outstripped average room rates. Apart from Moscow, Polish cities Warsaw, Krakow and Wroclaw particularly stood out from the crowd by recording a higher growth in average room rates than in occupancy rates ― contrary to the general trend. The room rates in Sofia, Budapest, Bratislava and Poznan, on the other hand, stagnated or even declined. According to Christie + Co, these markets remained under pressure throughout 2011.
In the future, Lukas Hochedlinger generally anticipates the hotel investment markets in Central and Eastern Europe to grow: “In relative figures, the GDP growth forecasts for the CEE region exceed those of Western Europe. With the economy under recovery we also expect hotel performance indicators to grow in the medium term. This, in turn, will enhance the attractiveness of Eastern European hotel markets among investors.”
Lukas Hochedlinger, Business Development Manager of Christie + Co for Austria and Central & Eastern Europe, expects a positive development for the CEE hotel markets in general, although some of the markets in the region are still suffering from the long-term consequences of the latest financial and economic crisis.
While many western European hotel markets generated significant RevPAR growth in 2010, the hotel sectors in some of the CEE countries were still struggling with the results of the crisis. In 2011, however, the CEE region eventually recorded a better performance too, chiefly induced by occupancy growth.
In nearly all Eastern European key markets, occupancy growth from January until October 2011 outstripped average room rates. Apart from Moscow, Polish cities Warsaw, Krakow and Wroclaw particularly stood out from the crowd by recording a higher growth in average room rates than in occupancy rates ― contrary to the general trend. The room rates in Sofia, Budapest, Bratislava and Poznan, on the other hand, stagnated or even declined. According to Christie + Co, these markets remained under pressure throughout 2011.
In the future, Lukas Hochedlinger generally anticipates the hotel investment markets in Central and Eastern Europe to grow: “In relative figures, the GDP growth forecasts for the CEE region exceed those of Western Europe. With the economy under recovery we also expect hotel performance indicators to grow in the medium term. This, in turn, will enhance the attractiveness of Eastern European hotel markets among investors.”
