Five-star hotels across Poland will reduce their prices and services in a bid to attract more guests and increase occupancy levels.

The move was taken because the Polish hotel industry was badly affected by the economic downturn.

Last year occupancy rates dropped to 40% from 70% and half of the rooms have remained empty for more than six months.

The Sympozjum Hotel in Krakow was the first to cut prices and services, which has attracted more guests.

Starwood Hotels & Resorts in Warsaw also decided to drop services down to four stars, according to local sources.

The Polish hotel industry expects the situation to normalise in 2012 when the country hosts the UEFA European Football Championship.