Romania reported a hotel investment volume of around EUR 50 million in 2024, representing about 13% of the total transaction volume in CEE-6 – Poland, Czech Republic, Slovakia, Hungary, Romania and Bulgaria – of EUR 399 million
The investment volume in 2024 represents a 93% increase over the transaction volume realized in 2023 and was generated by seven transactions, two of which were in Bucharest: Hotel Ambassador, a property undergoing a significant renovation, and Hotel Sir Royal Bucharest, according to Cushman & Wakefield Echinox.
At the same time, a positive sign is that five transactions were recorded for properties located outside the capital. Most of the transacted properties are positioned in the upscale and upper upscale segment.
During 2024, prime yields in the CEE hotel investment market remained steady, with a slight tightening observed for prime assets in key locations. Stabilizing inflation, lower bank funding costs and rising capital inflows point to the possibility of further yield compression through 2025.
Market performance is encouraging investment in new hotels, so by 2027 it is estimated that more than 1,000 rooms will be added to Bucharest’s current offer, with additions expected in all segments from midscale to luxury, as 2025 promises to be a more fruitful year, with two scheduled openings and one renovation and expansion.
One of the most important openings of 2025 has already taken place: Corinthia Grand Hotel du Boulevard Bucharest is now welcoming guests.
Growth in the Bucharest hotel market in 2024 was in line with trends in Central and Eastern Europe (CEE – 6 – Bucharest, Bratislava, Budapest, Prague, Sofia and Warsaw), with RevPAR increasing by 11.8% compared to 2023 and 12.6% compared to 2019 pre-Covid levels.
ADR has finally passed the €100 average daily fare threshold, registering growth of 7.3% in 2024 – the fastest ADR growth among CEE-6 capitals in 2024, while occupancy is still behind 2019’s level by 4 percentage points.
The region saw a notable 8.9% increase in RevPAR in 2024, driven largely by a 4.7% increase in RDA. Meanwhile, occupancy improved by 2.5% from 2023 to 65.2% in 2024 (4.7% behind 2019 levels).
“The performance of the Bucharest hotel market continues its positive trajectory, with RevPAR exceeding pre-Covid levels by 12.6%. A further increase in performance is expected due to Romania’s entry into the Schengen Area, but the uncertainty regarding the geopolitical situation is still an important factor to consider for the future development of the Romanian hotel market, including investment activity,” said Alina Cazachevici MRICS, Partner, Head of Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield.
Cushman & Wakefield Echinox is a leading real estate consulting company on the local market and the exclusive, independently owned and operated affiliate of Cushman & Wakefield in Romania.