Budapest Hotel Market Set for Significant Growth

The hotel market in Budapest is expected to grow significantly in the coming years as tourism booms, the international real estate market service provider CBRE told MTI on Tuesday.

CBRE recalls in its statement that last year there was a significant growth in the Budapest hotel market, with the number of guest nights increasing by more than 10% year-on-year, exceeding nine million. Budapest is clearly dominated by international demand. The main sending markets remain the UK, the US and Germany, but there has also been a marked increase in the number of tourists from neighboring countries.

The market has responded to the increasing demand by opening new hotels, with three new hotels opening in Budapest in 2024, they added.

CBRE expects nine new hotels and 800 new rooms to open in the capital this year, with a further 3,700 rooms expected to open based on the tourism investments now being seen. They point out that Budapest's offer still lags behind the leading tourist destinations, with Vienna, for example, almost doubling its offer, with a total of around 40,000 rooms.

CBRE points out that the increase in demand also creates attractive investment opportunities. For example, changing working patterns are reducing demand for office buildings, which are often being converted into accommodation.

Apartment hotels, which are slightly different from traditional hotels, are becoming increasingly popular, even for long stays, and branded residences could also become a luxury option for hotel chains in the coming years, they say.

Budapest has all the potential to become increasingly attractive to investors and visitors alike, and to become the most sought-after destination in the region in the future, the statement said. According to CBRE, the development of the domestic hotel market could be helped in the coming years by the development of the program offer, in particular the organization of internationally renowned exhibitions and conferences.