On the back of this, Budapest has a significant hospitality pipeline, with several international brands looking to enter the market, notably in the high-end and mid-range segments.
“In 2024, passenger traffic at Ferenc Liszt International Airport surpassed pre-pandemic levels, driven by re-nationalization and renewed strategic route development,” comments Attila Radvánszki, director of the hospitality consultants, Horwath HTL Hungary.
“Forecasts project 2.2% annual passenger growth through to 2035, reinforcing long-term momentum. On the ground, hotel supply is scaling up, with a 16% increase in room count expected by 2030 (roughly 3,700 rooms) led by the expansion of international brands,” he notes.
“It only confirms Budapest is actively shedding its ‘cheap(er) destination’ image as the city’s tourism strategy has matured through collective efforts of hoteliers, city authorities, and a tourism board,” Radvánszki says.
The consultancy says occupancy reached 67.9% in 2024. While that is still below pre-pandemic levels, it was sufficient to push RevPAR (revenue per available room, a combination of room and occupancy rates) to EUR 73, exceeding the 2019 performance.
“This performance shows a shift toward value-based pricing, driven primarily by the need to offset rising operational costs. The momentum has continued into 2025, with first quarter data showing a 23.3% year-over-year increase in RevPAR, supported by further ADR (average revenue per occupied room) gains and moderate improvements in occupancy,” says Horwath HTL.
Between 2026 and 2028, CBRE anticipates the addition of 11 hotels in Budapest, which will comprise 1,880 rooms. A further 11 hotels, with a total of 1,828 rooms, are currently in the planning phase. If all these projects are realized, the Budapest hotel market will expand by 3,700 rooms by 2028.
Between this year and 2027, more than 60% of Budapest’s new hotel supply will come from the Upper Upscale (653 rooms) and Upscale (466 rooms) categories, signaling a clear shift toward higher-end offerings. This aligns with the growing presence of international hotel companies and brands, according to Horwath HTL.
The Upper Upscale Radisson Collection Hotel Basilica Budapest is scheduled to open with 71 rooms this year. The Upscale Mamaison Vibe Hotel Budapest Downtown is set to deliver 96 rooms in the fourth quarter of the year.
“We think that demand is strongly back; developments have started, and there are also investor inquiries coming into the hotel market,” comments Péter Takács, a hotel and leisure specialist and partner at Newmark VLK Hungary.
“Altogether, there are around 1,600 rooms either under construction or at the planning stage in Budapest. I think that international brands are very eager to plant their flags in Budapest. Therefore, it is not difficult to find a good brand for your hotel if you have a good project,” he says.
“But there is a scarcity of available land or property for potential projects within the center of Pest. We think that there is certainly space for more development and supply in the three and four-star segment,” Takács adds.
At the luxury end of the market, the St. Regus Hotel Budapest, a Marriott International brand, is due to deliver a 12,000 sqm hotel with 102 rooms and suites, a spa and restaurants in a redevelopment of the historic Klotild Palace, a UNESCO World Heritage site, in the first half of 2026. The Qatari Ali Bin Ali group owns the building, which was previously the site of the Buddha-Bar Hotel Budapest.
In the Upper Upscale segment, BDPST-owned Equilor Asset Management has acquired the Budapest Sofitel hotel overlooking the Danube and is redeveloping and refurbishing the building. It will be relaunched as Accor’s luxury lifestyle brand, SO/, featuring 350 rooms, 56 suites, four food and beverage outlets, a rooftop restaurant, and a spa, fitness, and wellness area. It is currently slated to open next year.
“Budapest needs to offer more luxury experiences to attract more luxury travelers. This is particularly the case with regard to retail with the need for more brands and boutiques,” says Takács. “The provision of fine restaurants and dining is great, but retail is still lacking. I am sure this will evolve, but it is just taking longer than we thought.”
Both Budapest and Prague have UNESCO-protected historical centers, and a notable trend in each of the capitals has been for the purchase and redevelopment of heritage-listed buildings in prominent locations into hotels, giving the structures a new use-value while also preserving the classic feel of the area.
“The best-performing hotels are in these interesting, historic buildings. The redevelopment of historic buildings offers a unique branding opportunity and capitalizes on Budapest’s rich cultural heritage, appealing to all levels of tourism demand,” argues Takács.
“However, such projects often face regulatory hurdles and higher renovation costs due to preservation requirements; usually, there is a constraint on the number of buildable rooms. A new building is just more efficient; on the other hand, empty plots and buildings that can be demolished in good locations are hard to find,” he points out.
“That is why there is an obligation to convert or renovate; therefore, we will see more conversions. Undoubtedly, there is a lack of development sites in Budapest city center, with very few remaining. Given that tourism primarily occurs in the city center, the only viable option for the future will be to convert older, historical buildings,” Takács adds.
In a heritage redevelopment of a former office building, the U.K.-based Forestay Group, in a strategic partnership with Recorde Asset Management, has purchased Váci utca 81 for redevelopment into the 283-key Moxy Budapest Downtown Upper-Midscale hotel and apartment hotel, scheduled to open in the second half of 2026.
The developer is targeting BREEAM “Excellent” accreditation, which will be the first such high sustainability accreditation in Hungary’s hotel sector, according to Forestay Group.
“This property offers a unique opportunity to integrate cutting-edge technological concepts into a historically significant location,” comments Bálint Botos, managing director of the developer.
At the mid-scale end of the market, the relatively new Accor brand Jo&Joe (established in 2016) is due to deliver a 78-economy room hotel in Budapest, in a property it owns at Klauzál utca 3 in Pest’s District VII. The brand aims to redefine its sector “by combining the fun of a hostel and the comfort of a hotel.” The Holiday Inn Express Vágóhíd by IHG, meanwhile, is being developed by Wing and is scheduled to deliver 162 rooms in District IX in 2027.
This article was first published in the Budapest Business Journal print issue of June 27, 2025.
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