Business Forum • 22 August, 2024 at 10:33 AM
Bucharest's hotel market is set to expand by around 2,400 rooms by 2026, outpacing the estimated growth from other CEE-based capital cities, according to a Cushman & Wakefield report.
While the supply of new hotel rooms in Bucharest will gain 5.8% between 2024 and 2026, the average in CEE-6 markets will stand at 3.2%. This new supply will help diversify and enhance the hotel offerings in Bucharest's city center.
The report further shows that hotel occupancy in Bucharest grew by 3.4% in H1 2024 versus the same period of last year, and further gains are expected after Romania joined the Air Schengen Area last spring.
“Bucharest has faced numerous challenges in recent years; however, the city's hotel performance has shown a healthy recovery, with RevPAR growth in H1 2024 surpassing the European average,” says Sevda Cadir, Associate Director Cushman & Wakefield.
Moving forward, Bucharest is projected to fully recover and exceed 2019 levels of overnight stays in paid accommodations by 3% by 2025, according to Oxford Economics. This growth will be primarily driven by an increase in domestic overnight stays.
On the investment side, there are 400 hotel rooms for sale across several projects in Bucharest. During H1 2024, the hotel segment recorded transactions with a combined value of €20 million.