Specialist business property adviser, Christie & Co has published its overview of the Baltic hotel market, covering the capital cities Tallinn, in Estonia, Riga, in Latvia, and Vilnius, in Lithuania, which have shown continued, positive development over the last five years with growth driven by both domestic and international demand.

The report also discusses the development of the three major airports, highlights the key operators in the regions, and forecasts the future outlook for these markets. Across all three cities, investors are now seeking to capitalise on the growing markets, as the Baltic economies are among the fastest developing in Europe.

Growing economic value has been seen most prominently in Tallinn, which has seen annual RevPAR increases of 6% in the last five years, with Vilnius following with 4% annual growth. Riga has seen slower RevPAR increases over the five year period at 2% annual growth, as it has experienced the most rapid market supply increase, with the number of hotel rooms increasing by 11% in just five years.

However, all three markets have seen demand exceed supply, with Tallinn and Vilnius showing 3% and 6% supply growth over the five year period, respectively.