For most hotels in Budapest, the loss of revenue this year may exceed 70% from last year, while hotels outside of the capital are expected to see their revenue fall by 20-40% due to the coronavirus crisis, according to a representative survey commissioned by the Hungarian Hotel and Restaurant Association.
Differences in terms of operating profit projections are similar between Budapest hotels and those in other cities, the association said in the analysis sent to state news wire MTI on Wednesday.
Answering the question as to when they expect to see similar profits to last yearʼs level, most hotel managers in Budapest said it would be in 2023-2024 while those outside of the capital expect to return to that level in 2021-2022.
Some 10% of the hotels in the survey were still closed in September; 90% of these are Budapest hotels.
The association said the wage support measures played a critical role and extending these would be of great help to hotels both in Budapest and elsewhere. Wage subsidies provided by the government expired at most hotels in late August or in the first half of September.
The survey still shows only half of the respondents expect to lay off staff to manage the situation, which shows the importance of retaining quality workforce, the association said.