Developments in the hotel industry of Budapest

According to portfolio.hu, the statistical indicators of public accommodations are encouraging, moreover financing conditions are improving, so it is not surprising that we more and more often hear about new developments in the domestic hotel market.

Due to the increasing number of tourists, the hotel occupancy level has been steadily increasing since the 2009 low point of the market. In 2014, price of the rooms also increased which put the revenue much higher than the previous years.

The Hungarian luxury is cheap. According to Hotels.com, Budapest is the seventh cheapest city among the five-star hotels. One night costs less than USD 200, while it would cost more than USD 500 in New York, San Francisco or Paris. Only Warsaw and Pisa precede Budapest with their USD 130 and 172 prices in the continent.

However, Hungarian hotels represent quality. According to the 2015 summary of TripAdvisor, Four Seasons Gresham is the fourth best hotel in the world and the first in Europe. Budapest is also among the 25 best travel destinations of the world and has the 25^th best restaurant of the world too, TripAdvisor said.

And if that wouldn’t be enough, several large-scale developments are also planned in Budapest – from City Park Museum Quarter to Duna riverside conference center – which can call the need for the expansion of hotel capacities.

In order to arrive the potential guests interested in five-star hotels in Hungary, high-quality transport services are also needed, portfolio.hu said.

During the crisis, the hotels were of which the most went bankrupt. At regional level, the successful projects are usually 3-4-star hotels with good location, in an economy of scale way. However, we couldn’t see much 5-star hotel developments since 2010. The most significant was the Buddha-Bar Hotel in 2012.

In early February, design contract of Parisi Udvar in Ferenciek tere was signed, which will be a 5-star hotel by no later than 2017.

A 5-star luxury hotel will open in the building of the former Ballet Institute in Andrassy ut, portfolio.hu said.

According to the golden rule of the hotel profession, it is worth to build a new hotel above 70% occupancy, so there are all of the conditions to construct new hotels in Budapest.

There is big movement in the market of hostels, the demand for boutique hotels is also significant, several of these places were handed over in Budapest in recent years.

European and Middle Eastern hotel investments totaled EUR 16.8 billion in 2014, representing a 30 percent increase over the previous year. Last year’s largest transaction was the sale of InterContinental Budapest. The Al Habtoor Group, which bought that hotel, also got Le Meridien two years ago.

based on the article of portfolio.hu
translated by BA

Source: http://www.portfolio.hu