BizKnowledge Watch

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This new report by KPMG provides an overview of the CEE tourism market, as well as offering insights into the costs, timeframes, challenges and financing issues of hotel developments in the CEE region. The following are its main conclusions:

1. 1.   The average development costs per hotel room range from €51,000 for a budget/economy hotel to €143,000 for an upscale hotel.
2. Construction costs and technical equipment account for approximately 70 percent of total development costs.
3. Development costs have increased by up to 20 percent in some countries in recent years but are expected to decrease in the short to medium term.
4. Average construction time is approximately 12-18 months, depending on number of rooms, location and quality level.
5. Obtaining the necessary building permits and bank financing are the major obstacles faced during the development process of hotels in CEE

The full report is available on the KPMG website.

This entry was posted on Monday, May 25th, 2009 at 7:10 am and is filed under Market & Industry reports. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site. Your comments will appear immediately, but I reserve the right to delete innapropriate comments.