The occupancy rate in Bucharest’s hotel market was up 5% in 2023 compared to the previous year, but it remains around 10% under 2019. However, average revenue per room was up 12%, which is higher than in pre-pandemic times, according to a Cushman & Wakefield Echinox report.
At the same time, Oxford Economics estimates that the demand for hotels in Bucharest will surpass 2019 levels by approximately 6% by 2025. This trend is driven by the recovery in the number of overnight stays by local tourists, which has already reached pre-pandemic 2019 levels during last year.
“The limited supply, as well as the anti-inflationary nature of the hotel industry and the improvement of the supply - both through the development of superior class hotels (midscale - luxury) and through the renovation of existing ones - has contributed to achieving 2019 RevPAR levels in 2023,” said Sevda Cadir, Senior Hospitality Consultant in CEE & SEE at Cushman & Wakefield.
The report shows that January and February saw the highest increases in occupancy rates for Bucharest hotels compared to the same period in 2022. The George Enescu Festival in September significantly contributed to hotel occupancy, while the increases recorded in June and October are attributed to the high season months. For the remaining period, hotels experienced lower occupancy compared to 2022.
On the hotel transactions segment, Romania recorded volumes of €28.2 million last year, down by 67% compared to 2022. All hotel buyers were local investors.
