Bucharest is the fifth most attractive market out of 20 cities in CEE-12 in terms of the interest of the main operators to invest in new hotel facilities in the next period, while the results of hotel operators in the Romanian capital reaching pre-pandemic rates, according to a survey by Cushman & Wakefield Echinox.
The research further shows that Cluj-Napoca received moderate interest, while some surveyed operators indicated a specific focus on prime locations within the city for their business ventures.
The agency’s survey was completed by more than 26 senior executives representing operators with 450 hotels with over 72,000 rooms in CEE-12, and over 140 proposed hotels comprising more than 22,000 rooms in the pipeline, combined. Aside from Bucharest, the most attractive markets for operators are Budapest, Prague, Warsaw, and Cracow.
Sevda Cadir, Senior Hospitality Consultant CEE & SEE at Cushman & Wakefield, points out that Bucharest's hotel market is attracting significant attention from international operators aiming to strengthen their foothold or expand their market share. The city's robust recovery and growing appeal present an exciting opportunity to diversify the product and introduce more affordable luxury hotels, filling a gap that currently exists. Additionally, the Romanian coastline's low brand penetration attracts operators due to its promising potential and lucrative market.”
Bucharest's hotel market rose in H1 2023, with RevPAR up over 43% compared to H1 2022. The sector matched pre-pandemic levels from H1 2019, driven by a nearly 11% ADR increase (vs H1 2019) or a 27% rise compared to H1 2022. Occupancy rates rose by about 13% in H1 2023 versus the same period of 2022.
The surveyed operators expressed positive sentiments about the future performance of hotels in Bucharest, particularly for the Luxury and Upper-Upscale classes, with 71% and 82% of respondents being optimistic or very optimistic, respectively.
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