INVESTMENT ACTIVITY
CEE lodge funding volumes reached €682M in H1 2025, marking a 364% year-on-year lengthen and the splendid volumes since 2019. This rise used to be basically pushed by heightened exercise within the Czech Republic, which led the draw in lodge funding, adopted by Poland and Hungary. Most transactions within the draw fascinating Upper Upscale properties, adopted by Luxury assets. The sure momentum is anticipated to continue for the length of the 2nd half of of 2025 and into 2026, with heaps of offers advancing thru quite a number of phases of the sales process, and extra alternatives anticipated to enter the market soon.
PRIME YIELDS
At some stage in H1 2025, high yields within the CEE lodge market remained rather valid, though high assets in key locations experienced some yield compression. As transaction exercise continues to rise and market liquidity improves, pushed by the entry of non-public merchants with more flexible funding criteria, extra yield tightening is anticipated in H2 2025.
SUPPLY
In H1 2025, ca. 20 resorts and serviced apartments with ca. 1,600 rooms opened all the procedure thru the CEE-6 capitals. These included landmark branded properties such because the Fairmont Golden Prague and the Corinthia Gigantic Hotel in Bucharest. The many openings mirrored a sturdy style out the Luxury and Upscale segments, which experienced basically the most well-known supply boost. General, room supply within the draw elevated by 1.7% YoY, basically pushed by dispositions in Warsaw (+3.8%), Prague (+1.8%), and Bucharest (+1.7%). Taking a scrutinize forward, room supply within the draw’s capital cities is anticipated to extra develop over the following 6 months, with Budapest main the vogue.
PERFORMANCE
The draw experienced an 9.3% lengthen in RevPAR when put next to H1 2024, basically pushed by a 6.9% rise in ADR. Occupancy also improved by 3.4 pp., reaching 65%, though it stays 6.5 pp. below 2019 stages. The RevPAR index in all CEE capitals has surpassed 2019 stages, with Warsaw (138.9%), Sofia (128.4%) and Prague (125.5%) main the vogue. Warsaw and Sofia are basically the most convenient cities to earn surpassed 2019 occupancy stages, reaching 104.6% and 100.2%.
