BBJ: The latest in-house renovations have been completed. How long was this stage, and how much was the investment?

Stephan Interthal: For this stage, from November 2023 to April of this year, we focused on renovating 81 rooms and three suites, comprising two executive suites and one Corvinus Collection Suite. The total investment amounted to EUR 5.5 million. Over the past four years, we have completed renovations on 215 suites and rooms, accounting for two-thirds of our inventory. The remaining three floors are scheduled for renovation during winter 2024-25 for six months.

BBJ: You’ve garnered quite a reputation as the ‘king of hotel restoration’ at Kempinski. Is this the end of the road for a while at Corvinus Budapest, or is it akin to painting the Golden Gate Bridge: a never-ending story where, once you get to the end, it is time to start again?

SI: Fortunately, we find ourselves in a privileged position with hotel owners who believe in both the great destination and the exceptional performance of Kempinski Hotel Corvinus Budapest. They remain committed to continuously investing in the property. Thus, renovations indeed are and will be somewhat of an ongoing narrative. This summer, we’re gearing up to renovate the hotel’s business center and the public restrooms in the banquet and conference areas. Plans are already in motion for winter 2025-26 to renovate the larger kitchen areas, necessitating timely investment and rehabilitation.

BBJ: Kempinski The Spa has also undergone a facelift. What new services are available to guests?

SI: Last summer, Kempinski The Spa underwent a comprehensive renovation, investing approximately half a million euros to completely revamp the welcome lounge, reception area and treatment rooms, adopting a chic “Japandi” style, a mix of Japanese and Scandinavian design. Concurrently, we enhanced the hotel’s fitness area and sauna facilities. Further improvements are on the horizon, with plans underway to upgrade the pool and the wet area, likely slated for next summer. Additionally, we’ve introduced certified organic seaweed-based skincare products from Voya to the market alongside innovative treatment concepts developed by Kempinski Resense Spa. Since the renovation, we’ve observed a significant uptick in interest and engagement with these revitalized services.

BBJ: What are your guest figures for 2024? Are you back to pre-COVID levels? What’s your forecast for the rest of the year and beyond?

IS: Regarding our guest figures for 2024 and the return to pre-pandemic levels, we find ourselves in a fortunate position. By the end of 2022, we had already nearly regained our pre-COVID levels, and 2023 turned out to be a record year in the 32-year history of our hotel, both in terms of revenues and returns of operators and owners alike.

Since the beginning of this year, we have experienced some unexpected “bumpy business weeks,” primarily due to our extensive room renovations. At peak times, this resulted in an inability to accommodate certain larger businesses, especially in the meetings and events segment, due to limited inventory availability. Additionally, we’ve observed increased competition in the Budapest market with the introduction of several new five-star properties.

Nevertheless, May and June have proven exceptionally strong months, setting new records. As we progress into the summer, we anticipate further developments, considering that some significant one-off events from 2023, such as the Athletic Championship and a large Indian wedding, will not be recurring.

Nonetheless, we remain confident in the performance of Q3 and Q4 of 2024. In summary, we expect 2024 to be comparable overall to the 2023 performance.

This article was first published in the Budapest Business Journal print issue of June 28, 2024.