A leading Polish short-term rental firm, Loft Affair (LA), is facing a potential insolvency as of mid-January 2026, leaving a trail of unpaid contractors, stranded tourists, and mounting financial concerns.The Polish-French company, a meaningful player in the country’s “condotel” market, has acknowledged liquidity issues while reports surface of guests being unexpectedly evicted and bookings cancelled during the peak winter travel season. Polish authorities have begun investigating allegations of potential fraudulent activity amid the unfolding crisis, which underscores the risks inherent in the rapidly evolving short-term rental sector.
A leading Polish short-term rental company, Loft Affair (LA), is facing potential insolvency, leaving tourists stranded and contractors unpaid.
The Polish-French firm, a major player in the country’s “condotel” market, has admitted to liquidity issues as reports emerge of guests being evicted mid-stay or having confirmed bookings cancelled during peak travel season. The situation extends beyond travelers, with subcontractors and employees also reporting unpaid wages and sudden terminations. Loft Affair is now analyzing various scenarios, including bankruptcy, the company has confirmed.
Loft Affair operates within the condotel model, where individual owners hold title to specific rooms or apartments, while the operator – in this case, LA – manages marketing, guest services, property management, and investor payouts. Owners were compensated either through a share of revenue or a fixed rental fee.
Investors first flagged concerns in the first half of 2025, noting delays in receiving scheduled payments. Some transfers were late or arrived in installments. The company attributed these delays to liquidity problems related to ongoing projects, according to correspondence with investors.
The unfolding crisis highlights the risks inherent in the rapidly evolving short-term rental market, particularly for investors relying on consistent revenue streams.
Company Halts Services, Prepares for Asset Return
As of mid-January 2026, Loft Affair has informed investors it is ceasing property management services and preparing to return properties to their owners. The operator cited an inability to continue operations but did not address outstanding financial settlements.
The company states a willingness to reach an agreement with affected parties, but is reportedly unresponsive to inquiries. Company officials acknowledge the possibility of bankruptcy.
According to reports from Puls Biznesu, Loft Affair has failed to make payments to contractors, including property owners, and is ignoring payment demands. Wojciech Budny, legal counsel for the company, conceded that liquidity problems began in November and December 2025.
Beyond property rentals, which remained profitable, Loft Affair also engaged in interior design and renovation. Significant liquidity issues arose in these areas during November and December 2025.
Budny indicated the company is exploring all options and hoping for cooperation from creditors. Should a resolution not be reached, a bankruptcy filing is likely.
Employees have also been impacted, facing unpaid wages and, in some cases, abrupt job losses in December 2025.
Some contractors attempting to recover funds allege potential misappropriation of assets from Loft Affair.
A complaint has been filed with the economic crime unit of the Krakow police department regarding potential fraudulent activity.
Police have initiated an investigation into potential fraud.
“Scandalous, Embarrassing Conduct”
The financial difficulties have directly affected tourists with bookings during the winter holiday period. Onet.pl reports that customers received cancellation notices and, in some instances, were evicted from their accommodations mid-stay!
“The scandalous and embarrassing conduct of this center. During our pre-booked and prepaid stay (Tuesday to Saturday), we received a message on Wednesday evening stating that we had to leave the apartment by 11 a.m. on Friday. Apparently, the building owner had changed and everything was being closed down,” described one guest, identified as Maciej, on the Facebook page for the company’s “White Hills” apartments. He reported receiving no assistance from management or reception staff, as they were unavailable.
“Scandalous conduct of the facility. We learned five days before our planned stay that the reservation had been cancelled and that our accommodation was not guaranteed,” wrote another guest, Ewelina.
The “White Hills” aparthotel and SPA has received only four Facebook reviews, all from January, detailing cancelled reservations or mid-stay evictions.
Onet.pl/ Puls Biznesu/ horecaabc.pl/ Joanna Jaszczuk
