Renovation of the Gellért and Rác Baths faces further delays – when can visitors return to Budapest’s iconic spas?

The reopening of two of Budapest’s most iconic thermal baths, Gellért and Rác, has once again become uncertain. Although preparatory work has not been halted, the Hungarian government has still not approved the roughly EUR 60 million loan required to carry out the renovations. Budapest Spas cPlc. (BGYH), which operates the facilities, has nevertheless not abandoned the financing plan and intends to resubmit the loan application.

Gellért Bath in critical condition

The Gellért Bath, which closed in October this year, previously generated around HUF 4 billion (EUR 10 million) in annual revenue, a significant portion of which is now missing from the capital’s bath operator’s budget. While some guests may switch to other Budapest baths, the financial loss remains substantial.

The closure was primarily due to technical reasons. The building’s core infrastructure has not undergone major renovation for more than 15 years, and many of the systems currently in use — including equipment and pipelines — are 50 to 60 years old, operating well below modern standards.

According to BGYH estimates, the renovation of the Gellért Bath alone would cost approximately HUF 20 billion, with a projected return on investment of around eight years. In the case of the Rác Bath, the payback period is estimated at nine years.

• Budapest’s iconic thermal baths to sadly close for years due to massive renovation

Intertwined interests: bath and hotel under one roof

As reported by Népszava, the situation is further complicated by the fact that the Art Nouveau and Art Deco complex houses both the bath and the Gellért Hotel, whose legal, ownership and technical systems are closely intertwined. While the bath remains under the management of the city-owned BGYH, the hotel building was acquired in 2021 by DOME Ltd, a company within the BDPST Group.

One of the key goals of the renovation is to separate the shared systems, as modernising the hotel alone is not feasible without upgrading the bath. Coordinating the two projects is therefore in the mutual interest of both parties.

Loan rejected, but preparations continue

Although the Budapest City Assembly approved the loan in October, the government rejected the application without providing an explanation. Mayor Gergely Karácsony has stressed that the bath renovations are financially viable investments that would increase not only the capital’s assets but also Hungary’s overall tourism appeal.

BGYH considers its creditworthiness indicators to be excellent and notes that developments of this scale are typically financed through loans worldwide. The company has confirmed that it will resubmit the application as soon as circumstances allow.

In the meantime, preparatory work is ongoing. Public procurement procedures are underway, structural reinforcement of basement areas is in progress, heritage elements are being preserved, and detailed construction plans are being finalised. At the Rác Bath, the contractor selection process is currently underway.

Reopening no earlier than 2027–2029

Under current plans, the Rác Bath could reopen in 2027. The interior spaces of the Gellért Bath are expected to be completed by the end of 2028, while the outdoor areas could welcome visitors again no earlier than 2029. However, these timelines remain heavily dependent on whether the government ultimately grants approval for the loan.