The Bucharest hotel market recorded the highest progress among Central and Eastern European capitals last year in terms of revenue per available room (RevPAR), mainly as a result of the increase in hotel occupancy rates.<\/p>\n
The evolution occurred against the backdrop of relaxed travel conditions and the rescheduling of several events from 2020 to 2021.<\/p>\n
Market dynamics continue to attract the attention of hotel operators for expanding their own brands in Bucharest. According to a study conducted by Hotel Operator Beat Q4 2021, the main cities of interest for major operators are Prague, Warsaw, Budapest, and Bucharest.<\/p>\n
Bucharest was indicated as an attractive and very attractive market for 58% of the interviewed operators. It is important to mention that the survey revealed that players who left the market at some point are very interested in re-entering Bucharest.<\/p>\n
Only a small portion of operators did not target the capital as a primary objective for expansion, as their strategy is more oriented either towards resorts in the country or towards Central and Western Europe.<\/p>\n
The average hotel occupancy rate in Bucharest in 2021 was 32.1%, representing a 77.7% increase compared to 2020, the highest advance recorded among all Central and Eastern European capitals (Bratislava, Bucharest, Budapest, Prague, Sofia, and Warsaw).<\/p>\n
Amid the improvement in occupancy rates, revenue per available room (RevPAR) in the Capital increased by 67.3% compared to 2020, an advance that also placed the Bucharest market in first place among the region’s capitals.<\/p>\n
Overall, the Bucharest hotel market reached a RevPAR of EUR 20.5, the third highest among the region’s capitals, negatively affected by the decrease in the average daily rate (ADR). This is explained by the fact that hoteliers are relying on a volume-focused strategy during the recovery period, thus reducing the price per room.<\/p>\n
The Capital’s ADR in euros recorded a 5.9% decrease in 2021 compared to 2020. However, the ADR began to increase significantly from June 2021, with the relaxation of travel restrictions and the resumption of rescheduled events.<\/p>\n
Oxford Economics analyses regarding the tourist mix in 2021 show that it is similar to that of 2019. All this, as well as the fact that several hotel projects were postponed, indicates that Bucharest will record a rapid recovery in demand for the hotel sector.<\/p>\n
Cluj-Napoca is another target market for hospitality industry operators, with half of the respondents expressing interest in this city, one of the fastest-growing secondary markets in Romania.<\/p>\n
The majority of respondents are internationally renowned brands, some of which are not yet present in Cluj-Napoca or other cities in Romania. Although the market is currently dominated by independent hotels, two new hotels representing about 270 rooms\u2014Radisson Blu and Courtyard by Marriott\u2014will be developed in the coming period.<\/p>\n
Other Romanian cities mentioned by operators in the study as target markets are Iasi, Constanta, and Brasov.<\/p>\n
In Constanta, by the end of 2022, approximately 100 more new rooms will be developed under the Crowne Plaza by IHG Hotels brand.<\/p>\n
According to the survey, most operators expect a faster recovery of hotel markets in tourist areas and regional cities to 2019 levels than those in capitals.<\/p>\n
The survey, conducted in Q4 2021, was completed by executive members representing over 30 operators already present or interested in expanding in CEE. The interviewed operators have a total portfolio of over 730 hotels, with more than 121,000 rooms already operational in the region, and 590 hotel units with over 50,000 rooms in the planning phase.<\/p>\n
<\/p>\n
What drove the growth of the Bucharest hotel market in 2021?<\/strong><\/p>\n The growth was primarily driven by a 77.7% increase in occupancy rates following the relaxation of travel restrictions and the rescheduling of major events.<\/p>\n How does Bucharest compare to other CEE capitals in terms of RevPAR?<\/strong><\/p>\n Bucharest recorded the highest RevPAR growth in the region (67.3%) and reached an absolute value of EUR 20.5, the third highest among CEE capitals.<\/p>\n Which other Romanian cities are attracting international hotel operators?<\/strong><\/p>\n Besides Bucharest, operators are showing significant interest in Cluj-Napoca, Iasi, Constanta, and Brasov for future expansions and new developments.<\/p>\n","protected":false},"excerpt":{"rendered":" The Bucharest hotel market recorded the highest progress among Central and Eastern European capitals last year in terms of revenue per available room (RevPAR), mainly as a result of the increase in hotel occupancy rates. The evolution occurred against the backdrop of relaxed travel conditions and the rescheduling of several events from 2020 to 2021.…<\/p>\n","protected":false},"author":0,"featured_media":87596,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2852],"tags":[2888,2861],"thb-sponsors":[],"class_list":["post-117199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hotels-restaurants","tag-bucharest","tag-hotel-en"],"article_style_override":"on","post-style":"style2","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2019\/11\/hotelieri-2.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=117199"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117199\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/87596"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=117199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=117199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=117199"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=117199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}