Post by Horwath HTL

Has hotel development in CEE become structurally harder—or have investors just had to get smarter? 📊🇵🇱 At the recent Hospitality Investment & Technology (HIT) Poland conference, our Global Business Director, James Chappell, moderated an elite panel of regional leaders to unpack a critical question: How do you navigate hotel investment in a higher-cost world? Joined by Dimitris Manikis (Wyndham), Łukasz Płoszyński (Focus Hotels), Dominik Sołtysik (Essendi), and Yannick Wagner (Accor), the conversation cut through the usual conference generalities to deliver raw insights on the future of the CEE market. Here are the 3 major macroeconomic themes reshaping hotel investment calculus in Poland and the wider region today: 1. The Unit Economics Reset With "higher-for-longer" capital costs, structural labor shortages, and unpredictable construction budgets, the underwriting model from three years ago is officially dead. Investors aren't looking at "blank slates" anymore; they are ruthlessly auditing what actually gets built. The margin-defense strategy has shifted focus toward asset-light growth, conversions, and clever repositioning over capital-intensive new builds. 2. Focus as a Competitive Moat In a tighter capital environment, generic products are on the "no thanks" list. Regional players with highly specific positioning—like Focus Hotels—and global brands with strong distribution networks are finding that specialized focus is an advantage. Scalability and distinct lifestyle or economy/midscale differentiation are what currently attract capital. 3. Poland’s "Safe Haven" Demand Calculus There is a compelling thesis emerging: the regional geopolitical landscape is positioning Poland as a stable, safe, and highly attractive domestic and regional travel hub. While a one- or two-season demand spike doesn't change a 15-year asset underwriting, a sustained shift in travel patterns presents a genuine opportunity to reposition Polish hotel stock to capture higher-spending international and corporate profiles long-term. The Horwath HTL Takeaway The CEE hospitality market is transitioning from a phase of rapid volume growth to one of institutional sophistication. Capital is available, but it demands smarter underwriting, structural efficiency (especially regarding labor-saving hotel design), and flawless concept integrity. A huge thank you to our panelists for a candid, direct session. The fundamentals for Poland and the CEE region remain incredibly strong—if you know how to navigate the new rules of the game. 👉 What segment or product type do you think is best placed to defend margins in CEE over the next three years? Let us know in the comments. #HITPoland #HotelInvestment #CEEMarket #HorwathHTL #AssetManagement