For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2025
|
2024
|
2023
|
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
Budapest, the capital of Hungary, ranks as the tenth most populous city in the European Union. Historically, the city was known for its robust industrial sector, but it has since evolved into a significant hub for banking, finance, real estate, and accounting. As of 2024, Budapest hosts nearly 420,000 companies, including notable institutions such as the first foreign office of the China Investment Promotion Agency (CIPA) and the European Institute of Innovation and Technology (EIT). Prime Minister Viktor Orbán, who has held office since 2010, continues to face growing opposition domestically and from other European nations, a year ahead of the 2026 elections, amid a struggling economy.
In addition to its economic significance, Budapest is renowned for its rich cultural heritage and diverse array of attractions, making it one of Europe's top tourist destinations. Iconic landmarks such as St Stephen’s Basilica, the Hungarian Parliament Building, Buda Castle, the Chain Bridge, and the Opera House showcase the city's historical depth. These attractions have contributed to Budapest's reputation as a premier European tourist destination which, in turn, bolstered the hotel market in the years leading up to the pandemic.
Budapest has experienced steady growth in visitation, largely driven by the expansion of routes from low-cost carriers. Between 2009 and 2019, total arrivals increased at a compound annual rate of 7%, reaching 4.6 million by the end of the decade. Prior to the pandemic, the city’s strong hotel performance and rising airport traffic enabled Budapest to outpace regional peers such as Vienna, Prague, Bratislava, and Warsaw. This surge in demand pushed occupancy close to 80% and supported solid average rate growth, albeit from a relatively low base.
As with most global markets, this momentum was abruptly halted by the onset of the COVID-19 pandemic. However, since borders reopened, Budapest has seen robust RevPAR recovery, driven primarily by growth in average rates, largely supported by underlying inflationary trends.
From 2019 to 2024, the city’s hotel supply expanded by more than 11%, placing downward pressure on occupancy levels, which remain six to eight percentage points below their pre-pandemic peak. Nevertheless, RevPAR in 2024 has surpassed 2019 levels in real terms, though it remains slightly below when considered in Hungarian forint. This variation is primarily due to different inflation considered and currency fluctuations, as the Hungarian forint depreciated by more than 20% against the euro between 2019 and 2024.
Budapest’s pipeline is quite substantial with around 3,500 rooms due to enter the market in the next three years, representing more than 10% of the current supply. Among the new supply, a couple of luxury properties will open in 2026: the 108-room St. Regis Klotild Palace Budapest and the 350-room SO/ Budapest, located on the site of the former Sofitel Chain Bridge. Other notable openings include the 280-room Moxy Budapest (early 2026) and the 181-room Ruby Budapest (late 2026) which is giving a new dynamic to the city’s oldest retail shop, Corvin Palace. Internationally branded hotels in both luxury and lifestyle categories are set to further elevate Budapest's reputation as a prime destination.
Budapest saw minimal hotel transactions since the onset of the pandemic, most of which do not disclose transaction prices. Only two transactions were recorded in 2022: the sale of the 130-room ibis Styles Budapest City in September and the 234-room Hotel Gellért (expected to reopen under the Mandarin Oriental brand in 2027) in December. The only transaction occurring in 2023 was the sale of the 357-room Sofitel Chain Bridge for approximately €232,000 per key in June. No transactions occurred in 2024.
According to our HVI analysis, Budapest experienced modest value growth in 2024, with a 1.8% increase compared to 2023. Owing to the devaluation of the forint against the euro, the value per key in Hungarian forint grew by 9.8% year-on-year in 2024. Budapest's market fundamentals remain strong, and we remain confident in the city’s continued recovery in the years ahead.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
|
| ADR Change
|
| Market Demand Change
|
| Hotel Occupancy Increase/Decrease
|
| RevPAR Change
|
| Market Supply Growth
|
