INVESTMENT ACTIVITY
CEE hotel investment volumes reached €682M in H1 2025, marking a 364% year-on-year increase and the highest volumes since 2019. This rise was primarily driven by heightened activity in the Czech Republic, which led the region in hotel investment, followed by Poland and Hungary. Most transactions within the region involved Upper Upscale properties, followed by Luxury assets. The positive momentum is expected to continue throughout the second half of 2025 and into 2026, with numerous deals advancing through various stages of the sales process, and additional opportunities anticipated to enter the market soon.
PRIME YIELDS
During H1 2025, prime yields in the CEE hotel market remained relatively stable, although prime assets in key locations experienced some yield compression. As transaction activity continues to rise and market liquidity improves, driven by the entry of private investors with more flexible investment criteria, further yield tightening is expected in H2 2025.
SUPPLY
In H1 2025, ca. 20 hotels and serviced apartments with ca. 1,600 rooms opened across the CEE-6 capitals. These included landmark branded properties such as the Fairmont Golden Prague and the Corinthia Grand Hotel in Bucharest. The various openings reflected a strong focus on the Luxury and Upscale segments, which experienced the most significant supply growth. Overall, room supply in the region increased by 1.7% YoY, primarily driven by developments in Warsaw (+3.8%), Prague (+1.8%), and Bucharest (+1.7%). Looking ahead, room supply in the region’s capital cities is expected to further grow over the next 6 months, with Budapest leading the way.
PERFORMANCE
The region experienced an 9.3% increase in RevPAR compared to H1 2024, primarily driven by a 6.9% rise in ADR. Occupancy also improved by 3.4 pp., reaching 65%, though it remains 6.5 pp. below 2019 levels. The RevPAR index in all CEE capitals has surpassed 2019 levels, with Warsaw (138.9%), Sofia (128.4%) and Prague (125.5%) leading the way. Warsaw and Sofia are the only cities to have surpassed 2019 occupancy levels, reaching 104.6% and 100.2%.
