Hotel investment scene in CEE

Welcome to the first edition of the joint Cushman & Wakefield - CMS report on the Hotel Investment scene in CEE: New hotel concepts, the Millennial generation, and the new wish list.

Due to the region's turbulent history and post-war  communist regime, CEE markets have been faced with an almost 30-year catch up in order to draw level with the rest of the Western world, and this pace of change has been reflected in the region's hotel development and investment market.  

The hotel market in the CEE-6 region* has experienced increasing transaction activity in terms of number and diversity of investors.  In the past we saw a relatively high volatility of hotel performance and investment returns due to rapid supply growth colluding with economic downturns,  In more recent years, the markets have entered a more mature stage and are attracting growing interest from international investors and operators.  This, combined with the changing needs of travellers, continues to drive further evolution of the hospitality sector across the region, with all its opportunities and challenges.

In this report we explore the underlying investment trends in the region, and how innovation is shaping the hotel industry.  We also discuss issues associated with shared-accommodation platforms such as Airbnb.  On top of that, we have asked selected international players active in the region, as well as those keen to enter the CEE market, for a short commentary.

*Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia