The hotel market was one of the most affected by the COVID-19 pandemic and is expected to fully recover in this context by 2024. However, very few projects were cancelled.
For the 2021-2023 period, 17 new hotels, totaling over 2,000 rooms, are expected to be delivered in Romania, with almost half of them located in the capital.
Among the hotels expected to open in Bucharest are the 5-star Autograph Hotel by Marriott, Corinthia Grand Hotel du Boulevard, and the completion of the Athenee Palace Hilton renovation.
2020 saw a decrease in hotel market figures, both in terms of supply (-17% compared to the previous year) and occupancy (-11.3%). Given that, in Romania, the tourism industry has a relatively low contribution to GDP (approximately 5% in 2010-2019, compared to the EU average of 9.9%), the economic impact of its sudden decline was less evident.
Despite efforts to retain employees, the closure of hotels and restaurants led to a significant number of layoffs in the hospitality industry. According to INS data, over 200,000 people were employed in the industry in 2018 and 2019. In 2020, the number of employees dropped to 150,000. Additionally, the restriction of business travel throughout the year had a strong impact on hotels located in Bucharest and major cities, as they represented the main driver of demand for inner-city accommodation.
Overall, the net occupancy rate dropped to 22.9% in 2020, from 34.2% in 2019.
Frequently Asked Questions
How many new hotels are opening in Romania?A total of 17 new hotels, providing over 2,000 rooms, are scheduled to open across Romania by the end of 2023.
Which major hotel brands are expanding in Bucharest?Key developments in the capital include the 5-star Autograph Hotel by Marriott, Corinthia Grand Hotel du Boulevard, and the renovated Athenee Palace Hilton.
What is the recovery outlook for the Romanian hospitality sector?The hotel market is expected to reach full recovery by 2024, following the significant disruptions caused by the COVID-19 pandemic.