German low-budget hotel and hostel chain A&O will open its first Hungarian unit in the second half of August, according to a report by local current affairs news site hvg.hu. Others in the hybrid segment of the market are set to follow.
Located on Csengery utca in Budapest, in a refurbished former office building, the A&O hotel will offer 412 beds in 108 rooms.
Russia’s Netizen, meanwhile, has been trying to enter the Hungarian market for two years, with its opening having been impeded by a limited supply of skilled staff. According to the firm’s website, the Hungarian unit of Netizen will offer 400 beds in a hostel service that also includes classic hotel rooms.
Real estate expert Péter Takács told hvg.hu that Budapest is still far from saturation in terms of tourist offers, and added that there is a growing demand for corporate and community accommodation in the capital as well. Takács said that branded hotel chains can fulfil this type of demand.
Takács predicted that the coming three to five years will likely generate a further 2,000-5,000 beds on the market in hybrid-type developments including classical full-service hotel facilities, dormitories and co-working spaces under one roof, hvg.hu added.