Business Forum • 26 August, 2024 at 10:30 AM
Romania's hotel market has recorded transactions with an average value under €5 million over the past 18 months, according to a Crosspoint Real Estate report.
However, the investment volume during H1 2024 has already exceeded the total investment volume for the sector in 2023, reaching an estimated €29 million. This represents 7% of the total investment volume registered in Romania's commercial real estate sector during H1 2024.
Ilinca Timofte, Head of Research at Crosspoint Real Estate, says that even large hotel deals focused on assets slated for refurbishments and rebrandings, rather than prime properties.
“This indicates both a cautious approach from investors and a scarcity of high-end products available for sale. Investors in the Romanian hotel market are currently prioritizing value-added opportunities over premium, turnkey properties typically transacted at the European level," says Timofte.
Meanwhile, 13 key hotels are expected to be delivered in Romania this year, including five five-star hotels and six four-star ones.
“There is an obvious shift on the domestic market towards high-end products, both in terms of demand and supply. This trend spans from boutique hotels to larger projects in urban areas, and even includes the upscale renovation of historical mansions in rural Romania,” says Timofte.
In the luxury segment, Bucharest will see the biggest deliveries of five-star hotels by 2026, including the 170-room The Crest Collection and the 100-room Mondrian.