Bucharest’s hotel market posted a solid performance in 2024, continuing to recover from pandemic-era declines in average revenue per available room (RevPAR) and occupancy rates, while the average daily room rate surpassed the 100 EUR/room threshold, according to real estate consultancy Cushman & Wakefield Echinox.
This performance encourages investments in new hotels, so that by 2027 Bucharest could have around 1,000 new rooms, representing hotels in all segments, from midscale to luxury.
Two hotel openings are planned for 2025, representing a renovation and an expansion.
One of the most important openings in 2025 has already taken place, namely the Corinthia Grand Hotel du Boulevard Bucharest in the city center.
In 2024 only one hotel was completed in Bucharest, namely Ramada by Wyndham Bucharest Otopeni Airport.
The growth of 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 average revenue per available room (RevPAR) up 11.8% compared to 2023 and 12.6% compared to 2019.
At the same time, with an increase of 7.3%, Bucharest recorded the fastest increase in the average daily rate (ADR) among CEE capitals, which thus surpassed the EUR 100 threshold.
Across the region, revenue per available room increased by 8.9%, largely on the back of a 4.7% increase in the average daily rate.
At the same time, the employment rate has increased by 2.5 percentage points compared to 2023, reaching 65.2% in 2024 (but 4.7 percentage points below the 2019 level).
In terms of investment, Romania recorded in 2024 a volume of hotel property transactions of around EUR 50 million, representing 13% of the total CEE-6 (Poland, Czech Republic, Slovakia, Hungary, Romania and Bulgaria) transaction volume of EUR 399 million.
The volume transacted last year represents an increase of 93% compared to 2023 and was generated by 7 transactions, two of which in Bucharest: Ambassador Hotel, a property that will benefit from a significant renovation process, and Sir Royal Bucharest.
At the same time, it is a positive sign that five transactions involved properties outside the capital. The majority of the traded properties are positioned in the medium and medium-plus segment.
Over 2024, prime yields in the CEE hotel investment market remained constant, with a slight decrease observed for prime assets in key locations. Stabilizing inflation, falling financing costs and rising capital inflows point to the possibility of further yield compression through 2025.