Arche Group
The investment in Nałęczów is part of a broader strategy. Increasing the share in the MICE segment (meetings, incentive travel, conferences, congresses, trade fairs, and exhibitions) is an important element of the long-term diversification of revenue sources and the development plan of Arche Group, listed on Catalyst, whose goal is to increase the profitability of its hotels by strengthening its position as a leader in the meetings and events industry. In accordance with earlier plans, Poland’s largest hotel chain with domestic capital is systematically expanding its event infrastructure located at current and new facilities. In 24 Arche hotels across the country, featuring over 25,000 sq m of conference room space and over 130 ha of green event areas, more than 6,000 MICE events were hosted last year, generating approximately PLN 220 million in revenue.
— The MICE sector provides us with significant diversification of revenue sources, which significantly increases the profitability of the properties and the stabilization of their occupancy. As our good results show, great potential lies in combining multifunctional revitalizations with modern conference facilities and a well-equipped accommodation base located in interesting, non-obvious locations. The investment in the expansion of the Conference Center at Arche Nałęczów, the former “Milicja Sanatorium,” is another step in the long-term development strategy aimed at increasing the event capabilities of the entire chain. Soon, our two next facilities will also open, namely Garnizon Białystok and the hotel in Ożarów Mazowiecki near Warsaw. Meanwhile, in the recently launched Arche Metalowiec complex in Muszyna in the Sądecki Beskids, which combines 373 comfortable rooms with a spacious conference center of nearly 2,400 sq m and an extensive wellness zone with swimming pools and saunas, apart from the standard functions of high event halls, it can also serve as a multifunctional sports space or a venue for film and television production. Furthermore, we see gigantic potential in Silesia, particularly in the currently revitalized EC Szombierki project in Bytom. It is also worth adding that every new real estate acquisition is analyzed from the perspective of the possibility of building a large MICE hall, and thanks to the available land we already own, we can reinvest our profits in the expansion of subsequent conference and sports facilities — says Władysław Grochowski, CEO of Arche.
Indeed, the Conference Center in Nałęczów is one of the company’s many investments in the MICE sector. It is worth recalling that last year, as part of the Arche Aircraft Factory Mielno complex — on a 6.5 ha site, in addition to the rooms in the facility — “Hangar 3500” was created, reaching a height of 12 m and covering an area of over 3,500 sq m, offering one of the largest event spaces in Poland, capable of accommodating up to 4,000 people. Meanwhile, the 27 ha Palace and Folwark Łochów near Warsaw has become one of the largest conference and exhibition centers in the Masovia region, featuring another new hall for 1,200 people equipped with ProTech solutions. These are some of the few spaces in the country perfectly suited for film and sports industry event productions as well.
— The MICE sector in Poland has strongly rebounded after the pandemic and in many areas has returned to great shape, as shown by our good results and growing interest in organizing events. I can reveal that the three largest events by value last year — worth approx. PLN 1.6, 1.5, and 1.3 million — were commissioned by companies from the pharmaceutical, financial, and educational sectors. Moreover, thanks to investments in the expansion of conference infrastructure, we recorded record revenues in the Arche network at the Palace and Folwark Łochów facility. The position of Cukrownia Żnin near Bydgoszcz also remains consistently strong on the event map of Poland. We are very pleased with the growing interest in organizing events at Janów Podlaski Castle, right near the eastern border — interestingly, from prestigious premium brands and sports event organizers. It is also worth adding that for the comfort of our clients, we have strengthened the Central MICE Sales Department in Warsaw, offering services for all 24 facilities in one place, and every corporate client can count on a dedicated manager for comprehensive service — explains Klaudia Romanowicz, member of the Arche management board.
It is worth adding that, according to reports by the Polish Tourism Organization, the meetings industry sector in Poland generates an economic contribution estimated at over PLN 54.6 billion annually and accounts for approximately 1 percent of GDP. The industry supports or creates 215,000 jobs, and our country is strengthening its position as a leader and key hub in the Central and Eastern Europe (CEE) region. Over 18.3 million domestic and foreign participants took part in MICE events last year.
— Business tourism and the meetings industry are recording stable growth. From the demand side, we continuously see high demand for large facilities capable of handling the largest international events. The growing interest in live events, the need for integration and relationship building, and the professionalization of hotel services make Poland an increasingly attractive destination for event organizers from abroad. People need direct relationships with each other more than ever; they want to meet, spend time together, and interact. Therefore, companies are eager to organize events for employees and contractors. Investing in the MICE sector is a good direction that generates measurable business benefits, builds strong relationships, and drives the economy, while business tourism has been generating growing revenues for hotels, gastronomy, transport, and local markets for years — summarizes Adam Białas, Director of Communications and Operations (COO) — Press Spokesperson for Arche S.A. Group.
About Arche
The company carried out its first investments in Warsaw and Siedlce, and for two decades has been building throughout Poland. Currently, Arche is Poland’s largest hotel chain with domestic capital, bringing together over 2,000 investors who collectively own over 3,500 hotel rooms and apartments, and it is also a residential developer. In its 35 years of operation, the company has built over 12,000 apartments and houses, and recently launched the 24th facility in its collection, Arche Metalowiec Muszyna, bringing its total to approximately 4,800 rooms. For years, the Arche Group has been taking care of historic properties primarily out of a passion for saving our heritage, transforming forgotten buildings into vibrant hotels, which constitutes its business model based on revitalization. For nearly a quarter of a century, the company has been giving Poles the opportunity to earn in the commercial real estate sector through its proprietary Arche System, which goes far beyond the definitions of apart- and condo-hotels. Arche SA CEO Władysław Grochowski, together with his wife, has also been running extensive activities through the Lena Grochowska Foundation for many years, integrating communities and activating socially excluded, intellectually disabled, and most needy individuals. For this, he received one of the most important distinctions in the world — the prestigious Nansen Award, granted by the UN High Commissioner for Refugees, as well as the Mother Teresa of Calcutta Award from India. The company’s strategy, known as “impact investing,” has successfully combined the achievement of financial goals with the generation of measurable social and environmental benefits for years.
