Kraków overtakes Warsaw in hotel occupancy

Kraków overtakes Warsaw in hotel occupancy

Kraków recorded higher average annual hotel occupancy than Warsaw in 2025, the first time since 2019. Wrocław, meanwhile, was the only major hotel market in Central and Eastern Europe where both occupancy and RevPAR fell. Walter Herz compares the results with the different pace of supply growth across the cities.

Wrocław adds more than 1,300 rooms

Wrocław added more than 1,300 rooms in about 18 months. Walter Herz said the rapid increase in supply put pressure on operating performance. In 2025, Wrocław was the only major market in Central and Eastern Europe where both occupancy and RevPAR declined.

The Walter Herz analysis does not disclose the actual levels of either metric. It confirms the direction of the change, but not its scale.

Kraków rebuilds occupancy

Around 2,000 rooms were added in Kraków between 2021 and 2024. Despite that expansion, average annual occupancy in 2025 rose above its pre-pandemic level and exceeded Warsaw for the first time since 2019.

New supply in Kraków is expected to remain very limited in 2026. Walter Herz expects this to support the profitability of existing hotels. The company does not provide full-year forecasts for occupancy, average room rates or RevPAR.

Warsaw supply grows 5.5%

Warsaw had more than 19,200 hotel rooms in mid-2026 and remained Poland's largest hotel market. Room supply increased by 5.5% in 2025, the highest growth rate among the largest cities in Central and Eastern Europe.

Walter Herz does not disclose Warsaw's absolute occupancy or RevPAR figures. Its analysis confirms only that Kraków's average annual occupancy was higher in 2025.

Tri-City pipeline tops 1,000 rooms

The Tri-City market recorded Poland's highest average hotel rate in 2025, while new supply remained limited.

Projects under the Renaissance, Golden Tulip, Radisson Blu, Swissôtel and Q Hotel Plus brands are expected to add more than 1,000 rooms in total. Walter Herz does not provide opening dates for the individual projects. It is therefore not possible to determine whether the new capacity will enter the market gradually or within a short period.

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