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Accommodation providers in the Hungarian capital registered a total of 9.9 million guest nights in 2025, representing a 4% increase compared to 2019 and 6.5% growth year-on-year. Of the record total, 8.5 million guest nights were spent by international visitors, marking a 7% rise compared to the previous year.
Driven by steadily expanding demand, the city is entering a significant wave of hotel development, with a growing share of projects involving the conversion of office buildings. In the coming years, new international brands could enter the market, while both supply expansion and investor activity are expected to remain strong.
Over the past four years, the number of guest nights in Budapest hotels increased by an average annual rate of 8.5%, indicating a consistently strong and dynamic pace of growth throughout the period.
In response to rising demand, a major hotel development cycle is currently underway in the capital. Ten new hotels opened in Budapest in 2025, adding a combined 819 rooms to the city’s supply.
In addition, approximately 15 hotel projects are currently under construction, representing nearly 2,300 rooms expected to open between 2026 and 2029. Of these, around 1,800 rooms could enter the market as early as this year. A further 2,000 rooms are currently in the planning phase, with several projects likely to launch soon.
Balázs Csörget
“The continuous growth in guest nights in recent years has clearly contributed to the intensive period of hotel development we are currently seeing in Budapest. Both investors and financiers have confidence in the long-term growth of the market, which is clearly reflected in the current development volume,” said Balázs Csörget, head of the hotel team at CBRE Hungary.
A significant share of the developments is linked to international hotel chains. More than 80% of the rooms currently under construction are affiliated with major global brands.
Among the projects scheduled to open this year is the Moxy Budapest Downtown, operating under one of Marriott’s popular brands on Kazinczy Street. Toward the end of the year, the Ruby Hotel, which recently joined the IHG chain, may also begin operations in the Corvin Palace building.
Further major developments are expected in the coming years. The former Sofitel building is set to reopen following a large-scale renovation under Accor’s SO/ brand, while the former Buddha-Bar Hotel could return to the market under the St. Regis brand, part of the Marriott portfolio.
Alongside new developments, conversion projects — where existing office buildings are transformed into hotels — are playing an increasingly important role. This trend is being driven by strong accommodation demand, limited development land, and rising vacancy rates in older office buildings.
Projects currently in preparation could add more than 1,000 new hotel rooms between 2026 and 2029 through office-to-hotel conversions.
Regulation affecting short-term apartment rentals may also support the hotel market. In January 2026, a district-level regulation banning so-called “Airbnb services” came into effect in Budapest’s District VI, resulting in a significant decline in the number of private and other alternative accommodation units.
According to data from the Hungarian Central Statistical Office (KSH), while more than 1,800 such accommodation units with nearly 2,500 rooms were operating in January 2025, by January 2026 this had fallen to 574 units and 927 rooms in the district.
The decline of short-term apartment rentals could also boost the aparthotel segment. These properties sit between traditional hotels and short-term apartment rentals: guests typically stay in apartments equipped with kitchens, while check-in and room access are often handled entirely digitally via smartphone.
“Several international aparthotel chains are currently actively seeking expansion opportunities in the Budapest market. However, further growth in the segment may require adjustments to accommodation category regulations, as the current classification system requires hotels to provide breakfast and other services, and operations without a reception desk are not yet fully clarified,” Csörget added.
Market participants expect demand to strengthen further in the coming years. In terms of guest nights, Budapest currently ranks 19th among major European cities, but is considered the fastest-growing among the larger markets.
Forecasts suggest that guest nights could expand at a compound annual growth rate (CAGR) of 11.7% between 2024 and 2030, significantly outpacing the second-fastest growing competitor, Florence.
Investor interest in Budapest’s hotel sector also remains strong. Properties requiring renovation — and which could reopen following modernization or rebranding — are particularly sought after.
Although there is currently a significant gap between sellers’ and buyers’ pricing expectations, market participants expect several hotel transactions to take place in the near future.
“The arrival of a significant volume of new room supply may put short-term pressure on average room rates and occupancy levels. However, the growth rate of demand is expected to exceed supply expansion in the medium and long term. Budapest already ranks among the fastest-growing large European markets, which signals strong long-term potential,” Csörget concluded.
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