Romania’s hotel market is attracting a wave of capital, driven mainly by successful local entrepreneurs diversifying their businesses from other sectors. They are focusing on the development of four and five-star projects, helping to raise market standards and with the potential to attract renowned international brands.
The market growth is fueled by Romanian entrepreneurs, while institutional or foreign investors are still scarce. According to Andrei Văcaru, head of capital markets for CEE iO Partners, although hotels are performing well, the number of transactions is low because owners see them as long-term entrepreneurial businesses, not as assets for maximizing short-term profit. This trend is also confirmed by the interest shown by real estate developers in the office and residential segments, who have started to invest in hotels, attracted by competitive yields across Europe. Established entrepreneurs who have entered the sector include Raul Ciurtin (food industry), Simion Mureșan (energy infrastructure), Dragos Petrescu (restaurants), Horia Ciorcilă (finance and banking) and the Pavăl brothers (DIY).
Concrete investments illustrate this trend. Raul Ciurtin, founder of the Zuzu dairy brand, has earmarked €30m for a hospitality project in Cluj, including the five-star Elania Resort & Spa hotel and the Elitis Events Center. Also in Cluj county, Electrogrup shareholder Simion Mureșan has opened a 100-room, five-star hotel in Turda, next to the La Salina winery he owns. In Cluj-Napoca, Horia Ciorcilă, the founder of Banca Transilvania, transformed the Sport Hotel, acquired in 2018 from SIF Moldova for EUR 5.6 million, into the five-star Radisson Blu Hotel.
In Bucharest, Dragoș Petrescu, owner of the City Grill chain, entered the hotel market in 2022 with a boutique hotel next to the Hanul Berarilor restaurant and has another project in development next to Hanu lui Manuc. In contrast, the Pavăl brothers, the founders of Dedeman, have chosen to invest in foreign markets, acquiring the Gardone Hotel in Italy in 2023 and the Waldhaus Flims Wellness Resort in Switzerland in 2024. Both foreign transactions were made in partnership with hotel operator Apex Alliance.