Exceptional Operational Results
Hungary’s hospitality sector closed 2025 on a high note, delivering its strongest operational performance to date. Budapest recorded the second-highest RevPAR in the CEE region- trailing only Warsaw – driven largely by a 4.86% year-over-year rise in occupancy. With international overnight stays fully back to pre‑pandemic levels and domestic demand showing continued resilience, the capital is set to remain one of the region’s most visited cities. “International business has fully rebounded, with demand holding firm despite rising prices,” notes Nicolas Horky, Head of Hotel Transactions CEE & SEE.
International Brands Elevating the Market
The ongoing expansion of international brands continues to shape the Budapest market. “Around 75% of the new room supply in 2025 was internationally branded, underscoring the strong interest from global operators,” says Zoltan Szabo, Hospitality Consultant CEE & SEE. This momentum is expected to accelerate, with more than 80% of the confirmed pipeline for 2026 and 2027 affiliated with an international marque – reflecting growing appetite for management and franchise models across Europe.
At year-end, luxury hotels accounted for over 8% of Budapest’s total room inventory, placing the city among the regional leaders. “The upcoming openings of SO/ and Mandarin Oriental will add nearly 500 luxury rooms,” notes Szabo. “While these projects elevate the city’s premium offering, the market will need to prove it can consistently attract sufficiently high‑paying guests.”
Beyond the capital, more branded properties are anticipated in regional hubs such as Debrecen, Szeged, and Győr, as these cities continue to benefit from strong connectivity and forward‑looking urban strategies.
Investor Sentiment and Market Activity
Hungary continues to demonstrate that liquidity can persist even in the face of regional geopolitical uncertainty. As in Poland and the Czech Republic, domestic capital has taken a leading role, accounting for more than 60% of hotel transactions over the past five years. “Local capital is becoming the dominant buyer profile,” Horky explains. “Although Western investors remain keen to expand in Budapest, their pricing tends to be more conservative.”
Alongside core‑plus and value‑add deals – including landmark transactions such as the Marriott Budapest and Eurostars’ buy‑back of two properties – there is growing interest in development and conversion opportunities, with several sites changing hands in recent years.
Outlook: Solid Fundamentals Amid Cautious Sentiment
With elections approaching in April, many investors are taking a measured approach to capital deployment. Nonetheless, strong operational results, improving financing conditions, and sustained buyer interest provide a solid foundation for the year ahead. Local banks are increasingly active and competitive – financing conditions in CEE are now more favourable than in 2019 – supporting the potential for further liquidity and moderate yield compression. “Together, these trends signal a healthy investment environment and a market well‑positioned for continued momentum,” concludes Horky.