Outstanding Hotel Turnover in December

The performance of Hungarian hotels in December was again better than expected, despite the rising inflation and the Russian-Ukrainian war, the Association of Hungarian Hotels and Restaurants (MSZÉSZ) has announced.

They recalled that in 2022, with the lifting of the epidemic restrictions, both domestic and international tourism started to grow dynamically, and this was reflected in the month-to-month improving results of domestic hotels.

In December, the number of overnight stays increased by 25.3% nationally, 36% in Budapest, 18.2% in hotels outside the capital and 16.1% in the Balaton region compared to last year. Demand was particularly strong in Budapest in the last month of the year.

Last December, the total gross turnover of domestic hotels was HUF 44.9 billion, 55.7% higher than a year earlier and 11.1% higher than in December 2019. In Budapest, the total December gross revenue of hotels was HUF 21.2 billion, 67.6% higher than in December 2021 and 1.7% higher than in December 2019. The 12th month revenue for hotels in the Balaton region was HUF 6.2 billion, up 49.7% year-on-year and 37.5% on December 2019. The total revenue of hotels outside the capital was HUF 23.7 billion in December, up 46.4% year-on-year and 21.1% on the same month in 2019.

At the national level, the room occupancy rate of hotels was 48.5%, with the average gross room rate at HUF 32,640. Room occupancy was 11.7%age points higher than in December 2021, but 5.4%age points lower than in December 2019. The average gross room rate was 19.6% higher than the previous year and 33.8% higher than December 2019.

According to the analysis, 19.771 million guest nights were spent in hotels nationwide last year as a whole, of which 9.395 million were spent by foreign guests and 10.375 million by domestic guests. Total guest nights were 65% more than in 2021, but 15.8% fewer than in 2019. Hotel room occupancy in 2022 was 48%, 16.8%age points higher than in 2021 but 13.5%age points lower than in 2019.

In 2022, domestic hotels nationwide generated HUF 488 billion in revenue, 75.6% more than in 2021 and just 1.5% lower than in 2019.

According to the association's members' forecast, average occupancy in February this year is expected to be 55-64% in Budapest and 31-41% at Lake Balaton, while average occupancy in March in the capital is expected to be 54-63% and 35-44% at Lake Balaton.

Last year, 17 hotels opened in Hungary, eight of which are in Budapest.