Following the first and second edition of a series of hotel market snapshots looking at key cities in Central and Eastern Europe, hotel property specialist Christie & Co has just launched its third report, this time analysing market trends in Zagreb, Ljubljana, Sarajevo and Podgorica.
Lukas Hochedlinger, Managing Director Germany, Austria & CEE at Christie & Co, says, “All markets under review may have struggled with the impact of the financial crisis and witnessed years of limited hotel supply growth. However, all four markets have been on the upswing since 2010, witnessing positive growth and slowly attracting more attention from tourists as well as developers and investors.
“CEE capitals also profit from overheated competition in some Western European markets as investors are now looking for opportunities in less competitive environments where they are able to negotiate more attractive prices on assets.”
Marvin Kaiser, Consultant Investment & Letting for Austria & CEE at Christie & Co and author of the report, adds, “Croatia’s overall economic growth will be a magnet for opportunistic foreign investors, attracted by the growing potential of both business and leisure segments. Although hotel transactions were scarce in Zagreb, Croatia’s overall economic growth as well as the increasing demand coupled with the lack of branded hotels in recent years provides a great opportunity for investors. Hence, we expect domestic and international players to keep an eye on new opportunities in Croatia’s capital.”
Lukas Hochedlinger concludes, “It is true that compared to other key CEE capitals such as Budapest, Prague or Warsaw which saw strong growth and high investment activities, the smaller capitals in this comparison are still lagging behind. That said, as our report shows they hold some interesting surprises at closer inspection and certainly provide attractive opportunities for operators and investors alike.”