Recorde Forestay High Street Hotel & Residence Real Estate Development Investment Fund and Erste Bank Hungary have signed a credit facility agreement worth approximately €35 million to finance the hotel development of Váci Utca Center in Budapest's 5th District.
The financing covers the transformation of the property at 81 Váci Street and 36–39 Molnár Street into a dual-brand Marriott hotel. The development will include 217 Moxy rooms and 72 Residence Inn apartment-style rooms, totalling 289 hotel keys, along with 145 parking spaces. The two brands will operate within the same building while serving different guest segments, with Moxy targeting city-break visitors and business travellers on shorter stays, and Residence Inn catering to guests seeking longer-term accommodation.
According to the developers, the dual-brand structure is intended to provide a more flexible operating model and broader market coverage, while contributing to the diversification of Budapest's hotel supply. The project is situated in one of the city's central downtown locations and forms part of Forestay Group's strategy of repositioning high value-added inner-city properties.
The credit facility not only provides funding for the construction phase but also signals that real estate projects backed by an experienced development team, a strong location and an international brand remain capable of attracting institutional financing in the Hungarian market. The transaction is described as a confirmation of the long-term prospects of Budapest's hotel sector.
