In the next 3 years, several new brands will enter Bucharest market, while existing players will reintroduce renovated rooms on the market.
According to the consultancy, this supply influx will aid diversify and improve the hotel supply in downtown Bucharest. However, market recovery is expected to be slower amid a tighter competitional environment.
In the first half of 2024, demand on Bucharest hotel market rose by 3%, but it still did not completely recover after pandemic declines.
At the same time, the hotel market of CEE-6 capital cities in the first half of 2024 posted a 0.6% demand increase against the first half of 2019, while new hotel space supply advanced by 7.7% during the same period.
As regards the performance of the hotel market, Bucharest RevPAR (revenue per available room) went up by 9.2% in H1/2024 against H1/2023, topping both the European average and the average of CEE-6 capitals.
The occupancy rate in Bucharest increased by 3.4% in H1/2024 against H1/2023, mainly due to various events.
Bucharest has faced many challenges in recent years, but nevertheless the hotel performance of the city has witnessed a sound revival, says Sevda Cadir, Associate Director at Cushman & Wakefield. While the significant 5.8% supply growth is likely to dampen this increase, the arrival of several renowned brand will broaden the range of accommodation options and position the city on Europe’s hotel map, she adds.
In terms of hotel market deals, Romania registered a 13% increase to a total of EUR20 million.
At present, in line with Cushman & Wakefield data, around 400 rooms are available on the Romanian market, pointing to steady opportunities for investors.
(English version by Catalina Apostoiu)