The Bucharest hotel market continues to be a priority destination for hotel operators and is the 5th most attractive market out of 20 cities in Central and Eastern Europe (CEE) in terms of the interest of major operators to invest in new hotel facilities in the coming period.
Budapest, Prague, Warsaw, Krakow and Bucharest are the most attractive markets for hotel operators.
The findings were revealed by Cushman & Wakefield in its Hotel Operator Beat Survey for the first half (H1) of 2023. More than 26 executives representing hotel operators with an existing presence in the CEE-12 region or an interest in entering the region completed the survey. They operate more than 450 hotels with more than 72,000 rooms in Central and Eastern Europe-12 and more than 140 proposed hotels comprising a total of more than 22,000 rooms.
Sevda Cadir, Senior Hospitality Consultant CEE & SEE at Cushman & Wakefield, said: “The Bucharest hotel market is attracting significant attention from international operators looking to strengthen their position 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 the gap that currently exists. In addition, the low brand penetration of the Romanian coast attracts operators due to its promising potential and lucrative market.”
Bucharest remains a priority destination for operators looking to build or expand their market presence in the Romanian capital, Cushman & Wakefield said. In contrast, Cluj-Napoca saw moderate interest, while some operators interviewed said they were targeting the best locations in the city for their business activities.
Bucharest's hotel market grew sharply in H1 2023, with revPARs increasing by more than 43% compared to H1 2022. Despite challenges, the sector matched the pre-pandemic levels of H1 2019, driven by an almost 11% increase in ADR ( vs. H1 2019) or a 27% increase compared to H1 2022, the same source said.
Occupancy rates also rebounded by about 13% in the first half of 2023. This has been helped by improved hotel quality, including renovations and new luxury options, along with mid-to-high-end additions from Marriott, Accor and local players. success.
“Operators express positive sentiments about the future performance of hotels in Bucharest, especially for Luxury and Upper-Upscale, with 71% and 82% of respondents being optimistic and very optimistic, respectively. When it comes to hotel types, extended stay hotels and city hotels are perceived as the most optimistic by 79% and 75% of operators surveyed,” Cushman & Wakefield said in a press release.
Overall figures suggest that the hospitality industry in the CEE-12 region is experiencing a healthy recovery, but there are also challenges, with around 28% of hotel projects in the pipeline facing delays or suspensions, mainly due to increased development. costs.
In a recent Cushman & Wakefield report, Bucharest emerged as a compelling contender in the hospitality sector, securing the 5th place in attractiveness for hotel operators in the Central and Eastern European (CEE) market. This award underlines the growing importance of the city as a center for investment and development in the hotel industry.
Bucharest Rising Star:
Cushman & Wakefield's analysis highlights the remarkable rise of Bucharest in the hotel landscape of Central and Eastern Europe. With its vibrant culture, thriving business environment and strategic geographic location, Bucharest offers an attractive mix of opportunities for hotel operators looking to expand.
Investment potential:
The report deals with the investment potential of Bucharest, sheds light on the favorable economic conditions of the city and the increasing number of tourists. As the 5th most attractive market for hotel operators in the CEE region, Bucharest represents fertile ground for both established and emerging players in the hospitality sector to tap into the emerging market.
Competitive advantage:
Bucharest's charm stems from its unique blend of history and modernity. The city boasts a rich cultural heritage, stunning architecture and a dynamic urban landscape that attracts a diverse spectrum of tourists. Additionally, its well-connected infrastructure and evolving business ecosystem add to the overall appeal for hotel operators looking to establish themselves in this thriving destination.
Strategic Stats:
Cushman & Wakefield's comprehensive report offers strategic insights into the hotel industry in Bucharest, including key trends, market dynamics and growth projections. With a focus on data-driven analytics, the report provides hotel operators with the information they need to make informed decisions regarding investments, property acquisitions and expansion strategies.
Bucharest's success as the 5th most attractive market for hotel operators in the CEE region, as revealed by a recent report by Cushman & Wakefield, underlines the city's rapidly growing importance in the hospitality industry. With its captivating mix of cultural appeal, strategic location and burgeoning tourism industry, Bucharest presents an enticing prospect for hoteliers looking to capitalize on an emerging market with remarkable potential.
In a recent report by renowned real estate experts, Cushman & Wakefield, Bucharest emerged as an attractive destination for hotel operators in the Central and Eastern European (CEE) region. Ranked fifth in the list of most attractive markets, Bucharest's dynamic hospitality sector and investment prospects are attracting the attention of industry players. Read on to discover why Bucharest is a hotspot for hotel businesses in Central and Eastern Europe.
Cushman & Wakefield findings: The latest analysis by the respected real estate consultancy ranks Bucharest as the 5th most attractive market for hotel operators in all of Central and Eastern Europe. The city's strategic location, developing tourism landscape and strong economic growth are some of the factors that lead to this recognition.
Strategic location: Located at the crossroads of Europe, Bucharest offers an advantageous geographical location that makes it accessible to travelers from different parts of the continent. This connectivity increases the city's potential to become a hub for both tourists and business travelers.
Tourism growth: Bucharest's tourism sector has seen remarkable growth in recent years thanks to its rich history, vibrant culture and modern facilities. The city's attractions, including historical monuments, museums and a vibrant nightlife, contribute to its growing popularity among tourists.
Economic Resilience: Bucharest's economy is thriving, with a steady influx of foreign investment and a thriving business environment. This economic resilience creates a strong foundation for hotel operators looking for steady demand from both business and leisure travelers.
Investment opportunities: The hospitality industry in Bucharest presents promising investment opportunities for hotel operators and real estate investors. With the growing demand for high quality accommodation, there is considerable scope for new development, rebranding and refurbishment projects.
Competitive advantage: 5th place in the ranking of Bucharest underlines its competitive advantage in the hotel market of Central and Eastern Europe. The city's developing infrastructure, along with its affordability compared to other European capitals, positions it favorably for long-term growth.
According to expert analysis by Cushman & Wakefield, the rise of Bucharest to the 5th place in the hotel market rating in Central and Eastern Europe speaks of its potential as a hotspot for hotel operators. With its strategic location, thriving tourism sector, robust economy and promising investment opportunities, Bucharest is undoubtedly an attractive destination for those looking to capitalize on the growing demand for hospitality services in the region. As the city continues to evolve, hotel operators and investors can look forward to a bright future in Bucharest's dynamic hospitality environment.
Bucharest, the vibrant capital of Romania, has emerged as an attractive hotspot for hotel operators in Central and Eastern Europe (CEE). Cushman & Wakefield, a renowned global real estate services company, recently revealed that Bucharest proudly holds the impressive title of the 5th most attractive market in the CEE region for hotel operators. Let's dive into the factors that contributed to this remarkable success and why Bucharest is gaining significant attention in the hospitality industry.
1. Main location and connections:
Nestled at the crossroads of Eastern and Western Europe, Bucharest has unparalleled connectivity, making it a strategic hub for hotel operations. Its well-developed infrastructure, including an international airport and an extensive public transport network, ensures easy accessibility for both business travelers and tourists.
2. A thriving tourism landscape:
Bucharest's dynamic tourism landscape plays a key role in its appeal to hotel operators. The city boasts a rich cultural heritage with historical monuments, museums and lively entertainment options to enthrall visitors. As a result, the demand for quality accommodation has increased, creating ample opportunities for hotel investment.
3. A thriving business environment:
The developing business environment of the city contributes significantly to its attractiveness as a market for hotel operators. Bucharest is a prominent destination for international conferences, fairs and corporate events. The constant influx of business travelers is driving the need for luxury hotels that cater to the comfort and convenience of these professionals.
4. Various accommodation offers:
Accommodation in Bucharest covers a wide spectrum, from luxury hotels to boutique accommodation and affordable options. This diversity ensures that hotel operators can tap into different market segments and cater to different traveler preferences and budgets.
5. Strong investment potential:
Investors are increasingly recognizing Bucharest's potential for lucrative returns in the hospitality sector. Favorable economic conditions and a growing tourism market created an environment ripe for hotel development and expansion. As a result, the city has become a focal point for hotel operators looking to take advantage of this promising investment environment.
Cushman & Wakefield's evaluation confirms the position of Bucharest as the 5th most attractive market for hotel operators in the Central and Eastern European region. With its strategic location, vibrant tourism scene, bustling business environment, diverse accommodation offers and compelling investment potential, Bucharest is a compelling choice for those looking to build a strong position in the hospitality industry. As this dynamic city continues to flourish, opportunities for hotel operators will continue to expand, making Bucharest a popular destination in the heart of Central and Eastern Europe.
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