Description of activity

Centrum-Hotele operates in the hotel services market. Its revenues come basically from typical hotel activity as it provides accommodation and conference services for symposiums, congresses, conventions and business events. The company owns the following hotels in Łódź: ‘Centrum’, ‘Światowit’, ‘Savoy’, ‘Mazowiecki’ and ‘Polonia Palast’.
The company has at its disposal nearly 1 000 beds and 20 conference rooms. At present, it is the largest accommodation and conference base in Łódź, providing almost one third of hotel beds in the city. As the type of hotel base is diversified, customers include both individual guests and business people coming to Łódź for commercial reasons.
The company owns a plot of land located in Rogi, a very attractive suburb of Łódź, in the vicinity of the Łódź Hills Landscape Park and only 12 kilometres away from the motorway junction in Stryków. The future growth of the company is therefore likely to be connected with the consolidation and development of joint services. This means that the company's strategy should be generally based on the following scheme: (i) organization of conference events (investment in the above-mentioned land and construction of a conference facility for about 1 000 people); (ii) managing the accommodation base of nearly 1 000 beds (with separation of two 2 or 3 star facilities, two 2 or 3 star business facilities and eventually one 4 star facility); (iii) development of a network of spa facilities and medical services.
Poland is an attractive market for tourists and the Institute of Tourism forecasts an increase in visits on average by 4.5% per year, so in 2010 the number of visitors should reach 19 million. A growing interest in Poland has a positive influence on hotel industry prospects for the coming years. Organization of the Euro 2012 championship in Poland will have a great impact on the development of the industry and its profits. According to preliminary estimates, it is expected that nearly 0.5 million football fans will come to Poland during the event. As the Polish hotel base is deficient, existing facilities are still very competitive. For instance, in the Czech Republic there are 220 hotel beds per 10 000 inhabitants while in Poland there are only 40. The Łódź province falls even below the country's average concerning the shortage of hotel beds. The demand for hotel services in Łódź will be growing also due to a central location of the city, a short distance away from motorways (A1 North-South and A2 East-West) and the development of its airport.