Heavily affected by the crisis generated by the coronavirus, many hotel operators are counting on reopening during the holiday months to unblock activity and begin regaining ground.
The market could return to an occupancy rate of 50% – 60% for hotels operated by recognized brands towards the end of this year, in a scenario where the epidemiological situation remains stable or even begins to improve, Colliers International consultants estimate.
In March, the first official month of the pandemic, hotels in Romania faced a 68% decrease in the number of tourists, according to data from the National Institute of Statistics (INS). In Bucharest, the occupancy rate was only 15% in March and April, and most hotels closed their doors to economically cope with the significant drop in turnover.
The decline was greater than in other parts of the world, considering that in Europe the number of tourists decreased by only 19% in March, and globally the decrease was 57%, according to the World Tourism Organization.
The average occupancy rate in Bucharest could reach 40% – 45% at the end of this year, and the revenue per available room (RevPAR) of hotels in the Capital could record the same level as before the pandemic, of approximately EUR 87/day, in a year or even a year and a half from the moment the pandemic was declared.
Almost 50% of the total number of rooms in the Capital are operated by international brands or well-represented local brands and enjoy a much higher level of trust than locally operated hotels with a low level of recognition.
Colliers International consultants expect tourism to be supported to a greater extent by other economic sectors that will recover faster, such as the services sector or transport and logistics.
Frequently Asked Questions
What is the forecast for hotel occupancy in Bucharest by the end of the year?Consultants estimate that the average occupancy rate in the capital will reach 40% – 45% by the end of this year, depending on the evolution of the epidemiological situation.
How have branded hotels performed compared to local ones?Hotels operated by international or well-recognized local brands enjoy a higher level of trust, with the potential to reach an occupancy rate of 50% – 60%.
How significant was the drop in tourist numbers in Romania at the start of the pandemic?In March, the first month of the pandemic, the number of tourists in Romania fell by 68%, a much more severe decline compared to the 19% decrease recorded at the European level.