Bucharest, the capital of Romania and the seat of its government, is the country's primary hub for communications, industry, and commerce. The city is home to a growing number of multinational corporations, with key sectors including oil, automotive, banking, and finance. Over the past decade, Bucharest has also emerged as a significant centre for high-tech and telecommunications services, thanks to the rapid expansion of its IT sector. This growth has solidified Romania’s position as one of the fastest-growing IT markets in Central and Eastern Europe.
In December 2024, the Constitutional Court of Romania annulled the results of the first round of the presidential election, citing evidence of Russian interference. The decision was later upheld by the European Court of Human Rights. As a result, new elections have been scheduled for May 2025, which could determine whether the country’s government will continue to pursue a pro-Europe agenda.
Bucharest recorded a compound annual growth rate (CAGR) in visitation of 5% between 2015 and 2019, driven by both domestic and international demand, with domestic tourism accounting for around 65% of total visitation. As of 2024, the city’s top international source markets included Germany, Italy, the USA, Israel, and the UK – consistent with pre-pandemic trends. International arrivals grew by 19% in 2024, contributing to a total 9% increase in overall visitation. Further growth is expected following Romania’s recent entry to the Schengen Area in January 2025.
While the corporate sector continues to lead, leisure tourism is on the rise, bolstered by Danube River cruises. Occupancy levels in this market have steadily increased over the past decade, reaching the low 70s in the years preceding the pandemic. After the sharp pandemic-induced downturn in 2020 and 2021, the city’s hotel market saw a notable rebound in 2022, with both occupancy and average rates improving significantly. This momentum continued through 2023 and 2024, each recording double-figure RevPAR growth. However, in 2024, the occupancy levels were still three to four percentage points below levels achieved pre-pandemic, despite supply levels remaining relatively stable in the last ten years. In real terms, the 2024 RevPAR remains 5% below 2019 levels when measured in euro and 15% lower in Romanian leu (largely owing to differing inflationary pressures).
Over the coming years, Bucharest is set to see the addition of more than 2,000 hotel rooms, representing a potential increase of more than 15% in total supply. Notably, more than 70% of the pipeline is concentrated in the upscale and luxury segments, reflecting a shift toward higher-end offerings in the market. Key developments include the 224-room Swissôtel Bucharest (at the end of 2025) and the 171-room Academy Hotel by The Crest Collection (2026). We also note that the 30-suite Corinthia Grand Hotel du Boulevard opened in March 2025 and the Bucharest Unirii Square – Handwritten Collection opened in April 2025.
In 2023, the investment landscape did not see much activity, with the only existing asset to be transacted being the 67-room PeakTure Hotel Elisabeta, the price of which was not disclosed. There was additionally the sale of an abandoned building by Keys REIM, to be converted into a five-star lifestyle hotel. Two assets transacted in 2024: the 99-room Ambassador Hotel was acquired by Julius Meinl Living for renovation; the transaction details, acquisition price and estimated capital expenditure were not disclosed. The second hotel, the former 90-room Best Western Plus ExpoCenter, was acquired from a bank by a private investor for a rumoured €4.1 million, or about €45,000 per key. The property reopened in mid-2024 as the four-star Sir Royal Hotel.
