Tightening of the policy affected new hotel investment is strictly related to the situation that realization of each new project is treated very individually and additionally must be supported by good financial standing of the investor.

Banks become more careful in their assessment of the project and they may require strengthening of „solid” securities. 

The credit crunch will impact on the hotel sector because by definition and practice, it means liquidity crisis in the financial sector and limited trust between banks. 


In opinion of Krzysztof Czerkas of BRE Bank Hipoteczny “Projects connected with purchase of land for construction of hotels or of old tenement houses to be transformed into hotels after conversion have no chances to get financing”.

Banks decreasing of the credit risk will expect high own contribution above 40 % and it is evident that more favourable will be investors experienced in the hotel business.

Besides financing, one of more important factors influencing development of this sector is also decline of income of the population related to restricted demand for tourist services. It leads in consequence to big investment risk.   

It is also important mentioning that the most important for hotel sector are institutional clients who, depending on the market situation, draw budget plans and expenses on events, congresses, conferences.

Due to actual situation, restructuring is already undertaken in companies and consists in reduction of costs and expenses on training, company integration events, business trips which directly entail for the hotel sector a significant decline. 

The organization of European Football Championship Euro 2012 in Poland and in Ukraine increased interest in hotel investments.

It is certainly positive element but not the only one in development of hotel sector.  It is not possible to plan long term return investment basing only on this factor. It is truth that this event should be taken into consideration in the budget of the project and it could bring huge income, however it can be single revenue and hotel must keep operating later on. 

The organization of Euro 2012 can change Polish and Ukrainian image and can attire many tourists which is quite important for the sector.

Nevertheless, it remains that except development of the hotel sector, it is important to develop existing infrastructure, possibility to take advantage of tourist facilities, investments in road, railway infrastructure and airports, and construction of regional airports.

The economic slow-down can influence in significant way on incomes of Polish hotels. According to opinion of Marcin Górzyński from Alquila Park: “This will mostly affect the operation of hotels which are less favourably located and not networked (with no trade marks or brand names) of lower standard of service”.   

First and second quarters of 2009 could bring decrease of hotel rates. It is estimated that the third quarter will show some increase.

Nevertheless, the hotel investments in Poland are still attractive. There are a lot of factors stimulating this opinion such as favourable Poland’s position in Europe, cultural potential, development of infrastructure, new foreign investments and steady flow of EU funds. We still do not have enough number of hotel beds which could be stimulating on interest of development of our national hotel base. 

The positive aspect maintaining development of the hotel sector could be successive improvement on the market of investment credits and freeing up to bank procedures.

The financial crisis translates in decline of costs of building services and more realistic prices of real estate. For the last few years, these values entailed decrease in profitability of investments.

Actually the situation starts to change and maybe it is “green light” for new investments?

At present, it is difficult to summarize, but we expect in the near future changes and some increase, because Poland is one of these countries, which survived effects of the crisis and maybe due to rational politics will not be involved in it as much as other European countries.   

Source: Property Jornal Polska Giełda Nieruchomości 04-05/09