Wednesday, March 19, 2025
Poland’s hotel sector is experiencing a robust rebound, with the Baltic Sea coast at the forefront, as reported by industry professionals.
Increased warmth and a shift towards cooler summer destinations have contributed to a rise in tourism in 2024. As a result, occupancy rates are nearing their pre-pandemic highs.
Tourism sector investments are on the rise, with hotel transactions surpassing €120 million in 2024. This marks a significant increase from the €45 million recorded in 2023, more than doubling the previous year’s total.
Currently, investors are primarily targeting branded hotels, though serviced apartments and branded residences are attracting increasing interest.
Seasonal trends have also favored coastal hotels, with a notable shift in travel preferences. Many travelers are opting for Poland instead of southern Europe, where soaring summer temperatures exceeded 40°C (104°F).
Despite strong growth, seasonality continues to present a challenge. During the summer months, occupancy rates are approximately 30% higher compared to the colder seasons, when the Baltic Sea’s water temperature significantly drops.
The Upsurge
Poland’s hotel industry has seen notable improvements across all sectors. In 2024, average occupancy rates for branded hotels reached 69.2%, up from 66.9% in 2023, according to CoStar.
Room rates are also on the rise. The average daily rate (ADR) hit 382.92 Polish złoty (€86), reflecting a 6.89% increase from 2023 and a 29% boost compared to 2019. Revenue per available room (RevPAR) grew by 10.6% year-over-year.
The Risks
However, two major risks persist: the potential introduction of a tourist tax and the ongoing conflict in Ukraine.
Krakow, one of Poland’s most popular tourist destinations, is advocating for the implementation of a tourist tax to alleviate pressure on the city’s infrastructure. In 2024, the city welcomed approximately 7 million visitors, with nearly 1 million of them coming from abroad.
Poland’s location near Ukraine continues to be a concern for some travelers. Following Russia’s 2022 invasion, uncertainty has led to hesitation in visiting. Many hotel operators are closely monitoring the situation, hopeful that a peace agreement will bring the stability needed to drive tourism growth.
Looking ahead
Despite the challenges, experts predict continued growth for Poland’s hospitality industry. International tourism is projected to increase by 19.1% in 2025, while domestic demand is expected to rise by 5.4%.
