The recovery in the Budapest hotel market may continue

According to the regional analysis of the international commercial real estate consultant, the dynamic growth is also supported by the revival of domestic demand and the gradual return of international travelers. While the number of inbound tourists increased by 2 percent in Europe, the number of inbound tourists in the Central and Eastern European region increased by 8 percent in the first quarter year-on-year. In the composition of the guest base, the proportion of Western European and North American tourists is increasing, while those arriving from the Asia-Pacific region have decreased.

It was highlighted that inbound tourism in Budapest is particularly lively during weekends and holidays, with the pre-season and post-season gaining increasing importance.

The average occupancy rate of the capital’s hotels reached 71 percent last year, the average daily room rate (ADR) rose to 123 euros, while the revenue per room (RevPar) exceeded the 2019 level by 22 percent, they informed.

According to the announcement, the volume of hotel investments in Hungary increased by 15 percent in 2024. Budapest also played a significant role in the transaction value of 417 million euros measured at the regional level, mainly in the form of the sale of existing city hotels and further new developments.

Experts expect further demand to pick up in Budapest, which is one of the leading tourism and investment destinations in the region.