Bucharest to add 1,500 new hotel rooms by 2028

Business Forum
Bucharest's hotel market recorded revenue per available room (RevPAR) growth of 5% in the first half of 2026 compared with the same period in 2025, and 25.2% above pre-pandemic levels, according to Cushman & Wakefield Echinox. The performance is underpinning a development pipeline of more than 1,500 new rooms expected to enter the market by 2028, equivalent to approximately 13% of existing hotel stock, spanning segments from midscale to luxury.

Two openings are scheduled for 2026: Hilton Garden Inn Militari (125 rooms, developed by Envogue Residence) and Tecadra Bucharest Handwritten Collection (100 rooms), together adding 225 rooms. Further projects due by 2028 include Swissotel Bucharest (200 rooms, Niro Group), Wyndham Garden Bucharest (310 rooms, D Group Development), Hyatt Place and Hyatt House at Nusco City (270 rooms, Nusco Group), Promenada Mall Hotel (200 rooms, NEPI Rockcastle), Ambasador Hotel The Julius Bucharest (160 rooms, Julius Meinl), Novotel Living Baneasa (150 rooms, Erbasu Constructions) and Mondrian Bucharest Hotel (103 rooms, One United).

Compared with 2019, average daily rates (ADR) in Bucharest have risen 27.7%, while occupancy remains approximately 2 percentage points below pre-pandemic levels. Year-on-year growth in the first half of 2026 was driven by a 3.2% increase in ADR alongside a 1.9 percentage point rise in occupancy. Oxford Economics forecasts total tourist overnights in Bucharest to grow by more than 8% in 2026, with both domestic and international figures exceeding pre-pandemic levels. The broader CEE-6 region (Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia) recorded average RevPAR growth of 8.2% in the first half of 2026, with Budapest (15.3%), Bratislava (13.5%) and Prague (10.5%) posting the sharpest gains.

"Robust hotel performance continues to attract both local and international investors, who increasingly recognise the growth potential of the Bucharest market. Nevertheless, investors continue to navigate a challenging environment characterised by political uncertainty, fiscal tightening, and a softer economic outlook. Transaction activity remains largely driven by regional capital, while international investors remain selective, focusing primarily on prime assets offering resilient cash flows and strong long-term return potential," said Alina Cazachevici MRICS, Partner and Head of Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield.

Bucharest attracted €46.3 million in hotel investment volume in 2025, roughly three times the figure recorded in 2024, generated by transactions including the Duke two-asset portfolio and Hilton Garden Inn Bucharest Airport, across the Upper Midscale, Midscale and Upscale segments. Investment yields for Bucharest hotel assets remained stable in the first half of 2026 following a modest compression of 25 basis points in 2025. "Bucharest's hotel market continues to outperform, with RevPAR surpassing pre-pandemic levels by 25.2% in H1 2026, driven by strong ADR growth and reflecting hotels' increasing focus on a rate-driven strategy," said Elena Osain, Analyst, Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield.

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