Corporation announced that it would build at least 11 business class hotels in major Poland’s cities over the next 5 years, following the opening its first hotel in Warsaw last month. Hilton
also said that it considers the roll out of economy class hotels (Hampton) over the longer term. Meanwhile, Qubus, who owns 12 hotels in Poland, said it would accelerate investment in new hotels ahead of Euro 2012. Orbis
indicated that it would stick to its existing investment plans, saying that it would be satisfied with running of over 40 refurbished, economy class hotels after 2010.
Our view: We expect a negative market impact on the stock, from new investment announcements from various hotel operators, especially relating to Euro 2012, which would definitely lead to the pressure on hotel room prices.