Industry Update
Opinion Article 3 December 2013

Bargain Hunting for Luxury Hotels - A Comparison Of The Luxury Hotel Markets In Berlin, Prague And Warsaw

Which Capital City Provides The Best Value

By Arlett Oehmichen , Director with HVS’s London office

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The capitals of three neighbouring countries – Berlin, Prague and Warsaw – have a reputation for being affordable destinations. These cities are also home to a large number of international-standard luxury properties, so guests might wonder, 'where can I get the best value for money?' To answer this question, we analysed the characteristics of the luxury hotel markets in these cities. By examining the dynamics between supply and demand, we explore how occupancy and rates vary amongst the three markets, illustrating how luxury hotel rates compare to those of upscale hotels. From a guest's point of view, a luxury hotel is affordable and provides a good value proposition if the price difference to the upscale category justifies the superior quality and extra services. So getting value for money means happy guests, but what about the hoteliers? From their perspective, it's all about maximising rooms revenue per room (RevPAR) and bottom-line profits; thus, we provide an illustration of the RevPAR dynamics across the three markets.

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Bargain Hunting for Luxury Hotels - A Comparison Of The Luxury Hotel Markets In Berlin, Prague And Warsaw | By Christof Bertschi and Arlett S Oehmichen

The capitals of three neighbouring countries – Berlin, Prague and Warsaw – have a reputation for being affordable destinations. These cities are also home to a large number of international-standard luxury properties, so guests might wonder, ‘where can I get the best value for money?’
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Arlett Oehmichen

Arlett Oehmichen is a Director with HVS’s London office, specialising in hotel valuation and consultancy. Arlett joined HVS in 2006 after experience in the hotel investment industry as well as operational hotel experience. Arlett holds a Masters in Real Estate Investment and Finance from Reading University, UK and is a member of the Royal Institution of Chartered Surveyors (MRICS).

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    About HVS

    HVS is a leader in global hospitality financial consulting. Hotel owners, developers, investors, lenders, management companies, and public agencies around the world rely on HVS to make informed business decisions. HVS's commitment to excellence and unrivalled hospitality intelligence is delivered by more than 300 people in over 50 offices throughout the world who specialize in a wide range of hospitality assets including hotels, restaurants, casinos, shared ownership lodging, mixed-use developments, spas, and golf courses, as well as conventions, sports, and entertainment facilities. For more information about HVS visit https://hvs.com.

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