Warimpex, an Austrian developer and operator of luxury hotels announced that in would build 30 economy class hotels in Central Europe (Poland, Czech Republic, Slovakia, Hungary) in partnership with Louvre Hotels, the operator of Kyriad, Campanille and Premiere Classe hotel brands, over the timeline of the next few years.
Our view: Warimex plans to compete with Orbis in the economy hotel segment. That is likely to put an end to the positive trend of growing room prices in the segment, which we see at present. We reiterate our Sell rating for the stock.