In the top 5 list, a 10 pct growth of interest in Budapest is the most significant change, elevating the Hungarian capital to the first place this year. The interest in Prague remains stable, having reached nearly the same score as in H2 2021 when the survey was last taken.
As the performance of hotels soars above the pre-pandemic levels, regional and international operators are optimistic about the industry's outlook and keen to expand across the CEE-12 region. The positive trends are expected to continue, with operators expressing positive sentiments about the future performance of hotels in the region, particularly for the top two classes, with 71 pct of respondents being optimistic or very optimistic about luxury hotels, and 82 pct about upper-upscale hotels. The most optimistic outlook was recorded for extended stay hotels (79 pct) and urban hotels (75 pct).
Still, challenges are faced: around 28 pct of the 140 projects proposed by the surveyed operators across the CEE region are facing delays (17 pct) or being put on hold (11 pct). The most common delays range from 6 to 12 months, according to 40 pct of the respondents. These are caused mainly by increased development costs and challenges with debt funding, according to 65 pct and 35 pct of operators, respectively.
In Prague, following from the recent opening of the Andaz Prague and The Julius Prague, the openings of the reconstructed W Prague Hotel and Fairmont Golden Prague Hotel are upcoming, which will expand the Czech capital’s luxury hotel capacities. Still, the share of luxury hotel rooms will remain behind comparable markets such as Budapest or Vienna in this respect, while Prague arguably should offer more to reach its full potential.
David Nath, Head of Hospitality CEE & SEE, Cushman & Wakefield
Cushman & Wakefield conducted the Hotel Operator Beat Survey in H1 2023. It was completed by more than 25 senior executives representing hotel operators with an existing presence in the CEE-12 region or interest to enter it. They operate more than 450 hotels with over 72,000 rooms in CEE-12, plus over 140 proposed hotels comprising more than 22,000 rooms in the pipeline.
