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HVS In-Depth Europe Hotel Valuation Index:   2026 | 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, is among the most populous cities in the European Union. Historically defined by a strong industrial base, the city has evolved into a prominent centre for banking, finance, real estate and accounting. As of 2025, Budapest is home to approximately 420,000 companies. The city also hosts notable institutions such as the first overseas office of the China Investment Promotion Agency (CIPA) and the European Institute of Innovation and Technology (EIT). Hungary's political landscape shifted dramatically in April 2026, as Viktor Orbán's 16-year rule came to an end following a landslide defeat to Péter Magyar's centre-right Tisza party. Tisza secured a two-thirds supermajority, sufficient to amend the constitution, whilst Fidesz was reduced to just 55 seats. Voter turnout hit a record high of nearly 80%, underscoring the historic weight of the result. The change of government could significantly reshape Hungary’s relationship with the European Union, with expectations of a more cooperative stance in Brussels.

Beyond its economic significance, Budapest is celebrated for its rich cultural heritage and wide-ranging tourist attractions, cementing its place as one of Europe's premier travel destinations. Iconic landmarks such as St Stephen's Basilica, the Hungarian Parliament Building, Buda Castle, the Chain Bridge and the Opera House reflect the city’s rich architectural and historical heritage. This cultural appeal helped underpin strong hotel market performance in the years leading up to the pandemic.

Budapest has experienced steady growth in visitor arrivals, largely driven by the expansion of low-cost airline connectivity. 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 strong 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, following the reopening of borders, Budapest recorded a robust RevPAR recovery, led primarily by average rate growth amid the inflationary trends.

From 2019 to 2025, the city’s room supply expanded by more than 10%, placing downward pressure on occupancy levels, which in 2025 remained four to five percentage points below the pre-pandemic peak. Despite this, the market recorded strong average rate and RevPAR growth, with the 2025 performance exceeding 2019 levels in both Hungarian forint and euro terms. In nominal local currency terms, pricing growth significantly outpaced cumulative inflation during the period, supported by the improving quality of the city’s hotel stock through new higher-end supply and the refurbishment and repositioning of existing properties. Nevertheless, the approximately 25% depreciation of the Hungarian forint against the euro between 2019 and 2025 moderated performance growth on a euro-denominated basis.

Budapest’s pipeline is quite substantial, with around 2,800 rooms due to enter the market before 2030, representing just under 10% of the current supply. Among the new supply are several luxury properties opening in 2026: the 102-room St. Regis Klotild Palace Budapest (which opened in April), the 283-room Moxy Budapest (May 2026), the 212-room PURO Budapest (July 2026) and the 357-room SO/ Budapest, located on the site of the former Sofitel Chain Bridge. Other notable openings include the 181-room Ruby Budapest (March 2027) 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.

There have been minimal hotel transactions in Budapest since the onset of the pandemic, most of which do not disclose transaction prices. Only two transactions were recorded in 2025: the sale of the 362-room Marriott Hotel Budapest for €115 million (€318,000 per key) in June and the 134-room Czech Inn Hotel Ferenc for an undisclosed amount in August.

According to our HVI analysis, Budapest experienced modest value growth in 2025, with a 1.0% increase year-on-year. Budapest's market fundamentals remain strong, and we remain confident in the city’s continued recovery in the years ahead.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

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Hotel Occupancy Increase/Decrease
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Change In Value For Market: (€Euro)

Budapest RevPAR Change (€Euro)

Budapest RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)