When the largest Eastern European country – with its population of 40 million – was preparing its entry into the EU, hotel groups were developing many projects for Warsaw at the end of the 1990s. Mostly launched before September 11 and financed by private and institutional local investors, today they are opening their doors. In 2000, the region of Warsaw had 71 hotels versus 114 today and 19,600 rooms. “At the time when the contracts were signed, the city was experiencing a strong demand. The current drop in the RevPAR may be explained by the combined effect of the growth of the offer and flexibility of prices,” explains Sandro Bohrmann, General manager of Westin. Joining the Sheraton near the embassies, this high-tech hotel in the financial district recently entered the market. Before it, the Hyatt Regency, a second Radisson SAS and the InterContinental, one of the tallest skyscrapers, all hotels with over 250 rooms, contributed to the necessary modernisation of the hotel supply, but they make competition even fiercer. “It is possible to find last minute prices that are almost as good as ours for 4 or 5* hotels,” observes Anthony Vesin, director of the all-new Campanile.But within the Polish capital there is competition from Poznan to host large conventions, whereas Budapest, outside, has also positioned itself on this niche. While the city might have the Palace of Culture to hold conventions and exhibitions, that is not enough. Several projects have gone downhill. A project Zlote Tarasi or “ Golden Terrace” should rise up in May 2005. This futurist construction combines, on several levels, an urban park, and restaurants in the midst of which there is a covered area to host large events. Little by little, Warsaw is implementing elements that allow it to refine its position within the New...