According to the latest analysis by international advisory firm Cushman & Wakefield, Warsaw remains one of the strongest hotel markets in Central and Eastern Europe. In 2025, the Polish capital recorded one of the highest RevPAR growth rates among CEE-6 cities, while also leading the region in hotel room supply growth. Experts point out that, with stable capitalisation rates for prime Warsaw hotels and growing investor activity across the region, the outlook for the city’s hotel market remains positive.
Warsaw among the region’s growth leaders
According to the Marketbeat CEE-6 Hospitality H2 2025 report, the CEE-6 region recorded an 8.9% year-on-year increase in RevPAR in 2025. This was supported by a 4.6% rise in ADR and a 2.7 percentage point increase in occupancy. At city level, Bucharest and Warsaw achieved the strongest RevPAR growth in 2025, while Prague and Budapest maintained their leading positions in terms of the absolute level of this indicator.
“This is a very important signal for the Warsaw market. The fact that Warsaw is among the region’s top performers in terms of RevPAR growth, while at the same time increasing supply, confirms its role as one of the most important hotel markets in Central and Eastern Europe. The capital is now showing that growth is not merely the result of a post-pandemic rebound, but of solid demand fundamentals and the increasing maturity of the hotel market, which is reflected both in operating performance and continued investor interest,” said Maciej Prończuk, Senior Consultant, Hospitality & Alternatives CEE & SEE, hotel market expert at Cushman & Wakefield.
Warsaw leads new supply growth in CEE-6
In the second half of 2025, around 14 hotels and serviced apartment properties opened in the capitals of the CEE-6 countries, offering a total of approximately 1,130 rooms and apartments. According to Cushman & Wakefield, total room supply in the region increased by 2.7% year on year, with Warsaw making the largest contribution at 5.5%, followed by Budapest at 2.8% and Prague at 2.2%. This trend is expected to continue in 2026, with Warsaw likely to remain the leader in further supply growth.
“Warsaw stands out both in terms of the scale of new supply and the quality of projects entering the market. This shows that the capital remains an important reference point for the development of the hotel sector in the region, attracting the interest of developers and investors pursuing new projects,” Prończuk added.
Regional hotel investment market accelerates sharply
Investment activity in CEE hotel markets rebounded strongly in 2025. Transaction volume increased by 170% year on year, reaching EUR 1.16 billion. According to Cushman & Wakefield’s database, 44 hotels comprising 6,974 rooms were sold across the region, with the average price per room reaching EUR 167,200. Hotels in the upper upscale and upscale segments accounted for as much as 63% of investment volume.
Against this backdrop, Poland accounted for transactions worth EUR 135 million in 2025, covering 12 hotels and 1,652 rooms. In the second half of 2025 alone, hotel investment transaction volume in Poland reached EUR 54 million, which represented a decline compared with the very active second half of the previous year.
Selected major transactions completed in Poland during this period included the sale of Four Points by Sheraton Warsaw Mokotów, the transaction involving a portfolio of two Noli Studios aparthotel properties, and the sale of a portfolio of two B&B hotels.
Capitalisation rates stable, but prime assets benefit from improved sentiment
In 2025, Prague, Budapest and Bucharest recorded moderate capitalisation rate compression for prime hotel assets. In Warsaw, as in Bratislava and Sofia, capitalisation rates remained relatively stable, although slight compression was observed for the best properties in the most attractive locations. Cushman & Wakefield experts indicate that stabilising inflation, improved access to financing and capital inflows may support further cap rate compression in 2026.
“Although Warsaw remains the key hotel market in Poland, 2025 clearly showed that transaction activity is no longer limited solely to the capital. This is a signal that the market is developing in an increasingly balanced way, while investors are also looking more closely at regional locations,” Prończuk commented.
European context supports hotels, but selectivity remains high
An additional factor supporting the hotel market in Poland, including Warsaw, is improving investor sentiment at the European level. According to Cushman & Wakefield’s latest European Hotel Investor Compass report, 86% of surveyed investors plan to allocate the same amount of capital or more to the hotel sector in 2026 than in the previous year. At the same time, the market is becoming increasingly selective, with rising expectations regarding asset quality, the predictability of operating performance and ESG standards.
It is worth noting that, according to Cushman & Wakefield’s survey, investors expect an average price premium of around 4.3% for hotels meeting the highest sustainability parameters. This means that, for owners and investors, not only location and brand are becoming increasingly important, but also the technical quality of the building, operational efficiency and the long-term resilience of the asset.
Another factor that investors believe will change the hotel market in the near future is artificial intelligence. According to 81% of surveyed investors, AI will have a significant impact on shaping the hotel industry by 2030 or even earlier. Investors believe that the implementation of AI-based solutions will have the most beneficial impact on limited-service hotels.
Weighted average calculated based on the midpoints of the ranges.
