In response to the investment demand, a growing number of facilities similar to traditional hotels are being opened. This predominantly includes aparthotels and condohotels, and there are currently 2.5 thousand condo units being planned or built across Poland. According to the report by InwestycjewKurortach.pl, the majority are being built in Warsaw (39.7%), Gdansk (22,1%), and Cracow (14.4%).
The high standard of aparthotels stems from the apparent demand for luxury products. Standard hotel services no longer guarantee desirability, as the Polish strive for individual character, luxury amenities and strong brand consistency.
Apartments are suitable for guests looking for a combination the highest standards and privacy - something which hotels do not offer. The furnishings and equipment offered in aparthotels, such as the kitchen, washing machine and drier, provides guests with freedom and flexibility. Aparthotels guarantee absolute independence and offer a number of hotel-like conveniences such as 24/7 reception, parking and other facilities.
"There is an increasing amount of investments combining characteristics of hotels and apartments - that surely has an impact on the market and the quality of services being offered".
Condo style investments have been gaining traction due to the simplified financing method and the lower investment complexity. They have proven to be an ideal investment for individuals, and, on average, owners will see a profit increase of 7-8 percent annually. Nonetheless, they cannot be considered risk-free investments. Due to a substantially lower initial capital, many of these types of investments are run by individuals who have no experience in the hotel industry, which poses a significant risk when it comes to meeting profit expectations.
When analysing the potential investment, it is crucial to take into consideration factors such as location and the built standard, as unlike typically touristy towns, investments in cities will often guarantee whole-year occupancy. It is also a good idea to seek the expertise of a management
company, such as Profitroom Booking Engine. This will ensure proper visibility online and provide the technology to enable quick and secure direct bookings.
Aparthotels and condohotels cannot be seen as direct competitors to the hotel market. They are targeted at diverse audiences, which include investors as well as guests, and the increase in investments is influencing the growth of the whole industry. However, when it comes to investing in aparthotels, it’s important to fully assess the investment opportunity and seek the advice of trusted partners in order to maximise profits.