Analysts have recorded a significant hotel pipeline for Budapest with foreign investors looking to enter the market in partnership with local developers and global brands. Redeveloping well-located classic buildings is a favored development model due to the scarcity of vacant sites and the significantly higher number of buildings needing renovation in the historic center of the capital.   

“In 2024, passenger traffic at Ferenc Liszt International Airport surpassed pre-pandemic levels, driven by re-nationalization and renewed strategic route development. Forecasts project 2.2% annual passenger growth through to 2035, reinforcing long-term momentum,” comments Attila Radvánszki, director of the hospitality consultants, Horwath HTL Hungary.

“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.

It only confirms Budapest is actively shedding its “cheap(er) destination” image as the city’s tourism strategy has matured through the collective efforts of hoteliers, city authorities, and the tourism board,” he adds.

This year, nine hotels are expected to open, which will bring approximately 1,900 rooms to Budapest, according to CBRE. Between 2026 and 2028, CBRE anticipates the addition of a further 11 Budapest hotels (1,880 rooms) that are currently under construction. Another 11 hotels, comprising 1,828 rooms, are in the planning phase.

If all these projects come to fruition, the Budapest hotel market could expand by 3,700 rooms by 2028. Outside of the capital, development numbers appear to be falling; around 1,000 rooms are currently at the planning stage and expected to open by 2028.

Between now and 2027, over 60% of Budapest’s new hotel supply will come from the “Upper Upscale” (653 rooms) and “Upscale” (466 rooms) segments, 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 Upscale Mamaison Vibe Hotel Budapest Downtown is due to deliver 96 rooms in Q4 of this year.

UNESCO Luxury

At the luxury end of the hotel market, the St. Regis Hotel Budapest, part of Marriott International, is due to deliver a 12,000 sqm hotel with 102 rooms and suites, spa and restaurants in the historic Klotild Palace, a UNESCO World Heritage site, in the first half of 2026. The Qatari Ali Bin Ali group owns the building.

“There are 2,000 rooms under development, 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,” comments Péter Takács, a partner at Newmark VLK Hungary.

In the “Upper Upscale” sector, Equilor Asset Management acquired the former Budapest Sofitel hotel overlooking the Danube in 2022 and is redeveloping and refurbishing the building to re-launch it under Accor’s luxury lifestyle brand, SO/. The complex will consist of 350 rooms, 56 suites, four food and beverage outlets, a rooftop restaurant, and a spa/fitness/wellness area; it is scheduled to open next year.

A notable trend in Budapest has been for the purchase and redevelopment of heritage-listed classical Central European buildings into hotels in prominent protected locations, giving the buildings a new use-value while at the same time preserving the feel of the historic center of the city.

“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 the preservation requirements; usually, there is a constraint on the number of rooms. A new building is just more efficient; on the other hand, empty plots or buildings that can be demolished in good locations are hard to find. That is why there is an obligation to convert or renovate; therefore, we will see more conversions of historical buildings,” he believes.

Cultural Heritage

Restoring historic buildings into boutique hotels preserves cultural heritage while offering unique guest experiences. There are several projects in planning or vision stage focusing on adaptive re-use of residential or office buildings, as their historic character, if located centrally enough, has significant attractiveness for international visitors seeking genuine experiences, says Radvánszki.

In one such heritage redevelopment of an 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, an “Upper-Midscale” hotel and apartment hotel project scheduled to open in the second half of 2026.

The developer is targeting BREEAM “Excellent” accreditation, the first such high sustainability accreditation for a hotel in Hungary, according to Forestay Group.

“This property offers a unique opportunity to integrate a cutting-edge technological concept into a historically significant location,” comments Bálint Botos, managing director of Forestay.

With regard to sustainability, two hotel developments by Wing, the dual-branded Ibis and Tribe Budapest Stadium Hotel and the Tribe Budapest Airport Hotel, have obtained BREEAM certification. The Stadium Hotel is the first in Hungary to achieve the highest BREEAM In-Use “Outstanding” category rating.

“Wing’s hotel division has become a major player in Hungary: we have delivered more than 1,000 hotel rooms and therefore have complex know-how as a developer, investor and operator. We strongly believe that sustainability and guest experience are not mutually exclusive,” says Ernő Takács, deputy CEO of hotels and commercial properties at Wing.

“The ‘Outstanding’ BREEAM In-Use certification awarded to Ibis and Tribe Budapest Stadium Hotel marks a milestone not only in the Hungarian hospitality sector but also on the international stage, “adds Greenbors’ Barta.

“This rating represents the highest level of recognition for the sustainability performance of existing buildings, underpinned by comprehensive solutions in energy efficiency, water management, waste handling, and operational practices,” he explains.

“For Greenbors, it is especially important that more and more Hungarian developments meet international standards, helping to place Hungary firmly on the map of sustainable hospitality,” Barta, a certified BREEAM assessor who worked on the accreditation, adds.

This article was first published in the Budapest Business Journal print issue of October 17, 2025.