Budapest, May 23, 2018 – The CEE hotel market experienced rapid growth in the
last three years both in terms of hotel performance and transaction volume due
to the dynamically expanding tourism industry. Within the region, the Budapest
hotel market has seen exceptional growth, as its RevPAR (revenue per available
room) growth outpaced the key regional capital cities, according to Colliers
International's latest hotel market study.
Additionally, Budapest has a significant hotel
pipeline with 2,500 hotel rooms expected to be handed over in the upcoming
three years. This improvement is mainly the result of the rapidly growing
tourism market in the recent years. In 2017, a record amount of 8.9 million
guest nights were registered in the Hungarian capital, which is 6.9% higher
than it was the previous year. The capital city is still the most visited
location by foreign guests, as almost 90% of overnight stays in the Budapest
market were attributed to foreign guests in 2017, while this ratio is
significantly lower in the countryside.
In order to understand Budapest’s position in
comparison to its CEE capital peers, Colliers examined the key performance
indicators of the hotel markets such as RevPAR, ADR and occupancy rate in
Prague, Bratislava and Warsaw. According to the benchmark of the real estate
advisor company, Budapest ranks in the second place in the peer group when it
comes to ADR and RevPAR, while holding only the third place following Prague
and Warsaw, when it comes to the occupancy rates. Based on the expectations,
there is still room for improvement in the Budapest hotel market, especially in
the room rates.
growth in recent years was achieved despite the accompanying strong expansion
of the city’s Airbnb market. According to our research, Budapest can be
considered a mature market in terms of Airbnb supply, with a ratio of Airbnb
listings to hotel rooms almost as high as that of London. Even though the
Hoteliers in each segment notice Airbnb’s presence, these accommodations are
still considered the main competitors of budget/economy hotels, located in the
city centre. However, it is expected that Airbnb’s impact in the upscale/luxury
segment will be more significant when it launches its new premium services -
Airbnb Plus and Airbnb Beyond.” – says Tamás Steinfeld, head of research for
Colliers International Hungary.
here for the complete “Budapest Hotel Market overview -
Benchmarking to other CEE capitals” hotel study.