Many of these projects were announced during the pandemic, showing that while the market has been severely hurt by the health crisis, investors’ interest has not declined.
“Two major and somewhat divergent tendencies have emerged on the hotel market this year. Firstly, the Russia-Ukraine conflict has caused a refugee flow in neighboring countries, which led to rapid occupancy of hotels in the entire CEE. This growth has however been offset by the declining internal tourism amid the lifting of international travel restrictions. Thus, the occupancy rate, while higher than the one posted in 2020-2021, remained below pre-pandemic levels,” says Ilinca Timofte, Head of Research, Crosspoint Real Estate.
Bucharest’s market will attract the biggest number of new projects in the hotel industry. Thus, six new hotels will be opened in the capital city by 2024.
Beside large projects, investors have also centered on renovations, which meant new investments in the hotel market.
“This rising interest of investors led to a slightly higher weight of the hotel sector in total investment volumed for 2021 and the first half of 2022. Still roiled by the pandemic disruptions, the hotel industry is about to face new challenges, but also new opportunities in the coming period,” explains Ilinca Timofte.
(English version by Catalina Apostoiu)