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.