The soaring popularity of the Baltic Sea coast propelled Poland’s hospitality industry in 2024 to nearly reach its pre-pandemic occupancy figures, according to sources.
Hoteliers said that while there is certainly potential yet to be unlocked, the continuation of performance upside is, to some extent, dependent on factors beyond hoteliers’ control.
The planet is getting warmer, and so is the country’s coastal regions, but not so much so as some Mediterranean areas.
In the past few years, Poland’s hospitality sector enjoyed a strong recovery, said Johannes Mayr, general manager of the 184-room Bridge Wrocław MGallery Collection.
He said several factors had come together to secure a strong industry performance in 2024, including “the return of international visitors, strong corporate bookings and an increase in domestic travel."
Another important indicator was the surge in investment activity, sources said.
“On the transactions front, 2024 showed a gradual resurgence, with over €120 million ($130.5 million) transacted, a significant improvement of the €45 million compared to 2023,” said Nicolas Horky, partner, head of hotel transactions, Central an Eastern Europe, at business advisory Cushman & Wakefield.
Branded hotels are investors’ top choice, he said, but serviced apartments and branded residences also are getting their attention.
"Key transactions included the Cloud One Gdańsk and the Sofitel Grand Sopot, which reflect the renewed investor confidence in the market,” Horky said.
In 2024, the average occupancy of branded hotels in Poland reached 69.2%, up from 66.9% in the previous year and only slightly below the 69.8% registered in 2019, according to data from CoStar.
Revenue and profit did better, too. Average daily rate increased to 382.92 Polish złoty ($99.60) in 2024, up 6.89% in year-on-year terms and which was substantially higher — 29% — than the 296.84 Polish złoty registered for full-year 2019.
For the same period, revenue per available room increased 10.6% from the 251.32 Polish złoty of 2023 to the 265.01 Polish złoty of 2024.
For full-year 2024, CoStar added, RevPAR was up by nearly 28% over full-year 2019.
Climate Changes
The Baltic Sea coast appeared as the key driver of the Polish industry recovery, with Cushman & Wakefield finding that the seacoast to the north of the country accounted for two-thirds of all transactions in the hospitality sector in 2024.
Climate change had a huge role to play in the rising popularity of Poland’s beaches.
In 2024, sources said, a large part of South and Southeast Europe baked under a heatwave with temperatures reaching 40 degrees Celsius (104 degrees Fahrenheit), which made the Baltic Sea coast appear as a surprising alternative for visitors preferring a milder climate.
“The Poland coast increasingly attracts tourists from further abroad,” said Katarzyna Smierzchalska, marketing manager at the Hotel Nadmorski in Gdynia on the Baltic Coast.
Running a hotel on the Polish seaside has pros and cons, she said.
The Baltic coasts are increasingly turning into a popular European beach-holiday destination, but there remains a considerable gap between average occupancy during the high summer season and the rest of the year.
Smierzchalska said she estimated summer occupancy is on average 30% higher compared with months when the temperature in the Baltic Sea drops below comfortable.
In recent years, Poland’s hotels have seen their popularity rising among tourists from Arabic countries attracted to cooler temperatures and the nearby Tatra Mountains.
Smierzchalska said she believed climate change is not the only factor contributing to the booming popularity of Poland’s sea coast. Positive targeted marketing also has helped.
“We look at this growth more broadly,” Smierzchalska said. “This involves the comfort of the stay, good and healthy food and interesting places nearby, both those in the field of culture and art and in typical entertainment.
Mayr said the growth in popularity wasn't surprising.
“The region boasts stunning beaches and vibrant cities and remains an affordable destination for international travelers,” Mayr said.
Breaks on the wheel
Analysts believe the strong growth in Poland’s hospitality industry performance is set to continue.
“[It} is poised for further growth in 2025, driven by strong international tourism forecasted to grow by 19.1%, according to Oxford Economics, alongside stable domestic demand at 5.4%,” Cushman & Wakefield’s Horky said.
He added the recovery of the meetings, incentives, conventions and expositions segment is also expected to contribute, as is the gradual increase in transaction volumes anticipated, “primarily led by large, high-value branded assets that continue to attract international and local investor.”
A possible tourist tax might dampen the mood, with regional authorities and hoteliers arguing over the proposal over the past year.
Kraków, Poland's second-largest city and one of the most popular tourism destinations in the country, is lobbying for the introduction of the tax, citing growing pressure on its infrastructure.
In 2024, the city welcomed approximately 7 million visitors, including almost 1 million from outside of Poland, Mayr said.
“The introduction of a tourist tax is a sensitive issue,” he said, noting that hoteliers’ concerns center on taxes discouraging price-sensitive travelers.
As in almost every market where such a tax has been touted, the main worry is that revenue raised will not be reinvested in the industry that directly generated that additional revenue.
“Poland has significant potential as a tourist destination, but to fully capitalize on it, greater investment in tourism marketing and a more effective restructuring of tourism organizations are needed,” Mayr added.
Another development eagerly awaited is the hoped-for ending of the Russian invasion of Ukraine, a country with which Poland shares a 330-mile-long border.
The proximity to the Ukrainian battlefields has been an important factor discouraging visitors from visiting Poland in the last three years, sources added.
Poland’s hoteliers are pinning their hopes on a U.S.-orchestrated peace deal.
“The current situation [in Ukraine] is definitely having an effect on the market, and a potential end of the conflict could indeed support a stronger increase in performance for the industry,” Horky said.