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Annual Growth of Guest Nights by Visitor Origin

Source: KSH, CBRE Research

There is quite a large gap between these cities and the rest: Bucharest, ranking third in this regard with 73.3%, also registered a minor incline in terms of room availability, closely followed by Warsaw (72.5%) with a significant 2.2 pps decrease in its average occupancy rate and Bratislava closing the list with a 67% average rate after a 1.3pp improvement from last year. It is worth to note that Warsaw saw the the most significant stock increase on record at STR, while Bucharest expanded second-most rapidly, closely followed by Budapest and Prague, whilst Bratislava saw its stock sample contract slightly. The Average Daily Rate (ADR) rose further amongst BudapesthotelsandaveragedEUR90.9 (+5.1%y/y) over 2019, further narrowing the gap to Prague (EUR 93.2 ,+2.9% y/y). Bucharest and Bratislava also continued catching up to other CEE markets, recording massive inclines in terms of room prices with 10% and 20% annual gains, respectively.

Warsawseems tohavehit apeak in this development cycle and it remained the most affordable city across the core-CEE markets, offering rooms slightly cheeper (-0.1%) than a year ago, at an average of EUR 74.5. All of the above discussed cities closed positive periods in terms of room revenues in 2019, however, this has not necessarily meant that RevPAR (Revenue per Available Room) figures followed the same path, as there has been some changes registered in the monitored hotel inventory. Room revenues in Budapest hotels rose by 6.3% y/y, which, coupled with a 2% increase in available rooms resulted in a 4.3% RevPAR development, reaching EUR 71.2. Hotels in Prague averaged an EUR 73.9 RevPAR rate throughout 2019, showing a 3.7% y/y improvement. Although revenues grew further in Warsaw hotels as well, the significant new supply wave could not be monetized at the desired pace and after a 3.1% decline the overall RevPAR figure ended up at

Guest Night Split by Visitor Origin in 2019

Source: KSH, CBRE Research