Invesco, a global investment management company with over $1.4 trillion in assets under management, has completed a major transaction in the Central European hospitality real estate market. Acting on behalf of a German institutional investor, the company acquired a five-star hotel in central Warsaw for €120 million.
Prime Location and Hotel Features
The acquired property is located in one of Warsaw’s most prestigious districts, close to landmarks such as the Old Town, Royal Castle, and the Palace of Culture and Science. This makes it highly attractive for both leisure and business travelers.
Key features of the hotel include:
- 250 premium guest rooms
- Modern conference facilities totaling 2,500 m²
- A luxurious spa and fitness center
- Fine dining restaurants
The average price per room in the deal was €480,000, which aligns with the upper segment of the market. The estimated annual yield from the property is 5.5–6%.
Warsaw Hospitality Market Overview
Warsaw is strengthening its position as one of the most dynamic hospitality real estate markets in Eastern Europe. In 2024:
- Average hotel occupancy reached 78%
- Average daily rate (ADR) in five-star hotels was €160, peaking at €300 in high season
- Revenue per available room (RevPAR) increased by 11%
- The city welcomed over 21 million visitors, with 37% being international tourists
2025 Market Outlook
Forecasts for 2025 suggest:
- Occupancy rates will reach 80–82%
- Room rates are expected to grow by 7–8%
- Visitor numbers could climb to 23 million annually
Business tourism and international events will continue to drive demand for premium accommodation.
Comparison with Other Major Transactions
The Invesco acquisition is one of the most significant hotel transactions in recent years, but not the only one:
- €280 million – purchase of a Warsaw skyscraper with hotel space by a Swedish fund (2024)
- €110 million – investment in a luxury hotel in Warsaw by a European real estate fund (2024)
- €95 million – acquisition of a hotel complex in Kraków by a British investment company (2023)
At least three additional deals worth over €100 million each are expected to close in 2025.
Why Poland Attracts Hotel Investors
Poland is increasingly appealing to international investors thanks to several key factors:
- Economic growth: 3.2% GDP increase in 2024, with 3.8% forecast for 2025
- Strong and consistent price growth in hospitality real estate: +28% since 2020
- Growing presence of global operators such as Hilton, Marriott, and Accor
- Expanding infrastructure and direct flights, especially from Asia
Hospitality Investment Trends for 2025
Experts project:
- Total hotel investment volume in Poland could exceed €1.5 billion
- Warsaw is expected to capture up to 45% of this capital
- Increasing investor interest in aparthotels, extended stay, and hybrid accommodation formats
Conclusion
Invesco’s €120 million acquisition of a centrally located five-star hotel in Warsaw highlights the strong and growing investor interest in Poland’s hospitality real estate sector. High occupancy rates, stable revenues, and prime locations make such assets strategically valuable. With further price growth and demand expected in 2025, premium hotels in Poland represent a compelling long-term investment opportunity.
