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Sofia, Bulgaria’s capital and largest city, is the country’s primary economic engine, with a population of approximately 1.3 million as of 2025. It hosts the Bulgarian National Bank, the Bulgarian Stock Exchange and the headquarters of many leading domestic and international companies.

Sofia is home to several landmark venues, including the National Palace of Culture, the largest multifunctional conference and exhibition centre in the region, which regularly hosts major international events. Cultural institutions such as the Ivan Vazov National Theatre, Bulgaria’s oldest and most prestigious, and the Vasil Levski National Stadium, the largest in the country, further enhance the city's profile. Sofia also boasts a thriving film industry and was named a UNESCO City of Film in 2014. It has hosted the Sofia International Film Festival for the past 28 years, a major event in Eastern European cinema.

Sofia Airport, Bulgaria’s primary international gateway, handled just over 7 million passengers in the pre-pandemic period and recovered to similar levels by 2023. Growth continued into 2024, with passenger traffic reaching close to 8 million, before exceeding 8 million in 2025, reaching approximately 8.4 million passengers. This growth has been supported by Sofia’s increasing international connectivity and the expansion of low-cost carrier operations. The airport serves as a base for BH Air, Bulgaria Air and Bulgarian Air Charter, while Ryanair and Wizz Air operate extensive route networks from the city. In 2024, Ryanair added new routes including Alicante, Bristol, Copenhagen, Skiathos and Valencia, bringing its total network from Sofia to more than 40 destinations.

With occupancy levels typically in the low 60% range, Sofia’s hotel market recorded a RevPAR compound annual growth rate (CAGR) of 5% from 2016 to 2019, driven primarily by average rate gains, which started from a relatively low base. As the market emerged from the pandemic, demand volumes in 2022 recovered to around 80% of pre-pandemic levels, supported largely by resilient domestic corporate demand. Average rates rebounded strongly in 2022 and continued to gain momentum throughout 2023. In 2024 and 2025, average rates remained relatively stable. In 2025, occupancy levels reached what are considered to be stabilised levels, leading to a full RevPAR recovery, which is now aligned with 2019 levels in real terms.

Unlike other markets, Sofia has not experienced significant currency volatility, as the Bulgarian lev has been pegged to the euro (BGN1 = €0.511) since 1999. Bulgaria officially joined the Schengen Area in March 2024 (with full membership since 1 January 2025), and the country’s euro adoption started as of 1 January 2026, becoming the 21^st member of the Eurozone.

Sofia’s hotel market comprises approximately 8,400 rooms. The hotel inventory has seen very few changes in the last decade, which has consisted mostly of hotel conversions and branding. However, a moderate 500 new rooms are expected to enter the market by 2028, through three projects, representing a 6% increase in supply. Expected openings include the 100-room Nobu Hotel and Restaurant Sofia (April 2027) and the 232-room Sofia Marriott Hotel (set to open in September 2026 and rumoured to be currently in the pre-opening phase).

After several years without notable hotel transactions, 2020 saw two properties change hands: the 130-room Holiday Inn Sofia and the 185-room Sofia Hotel Balkan, both acquired for undisclosed amounts. In 2022, the 122-room Suite Hotel was sold for €10 million (€82,000 per key). No further transactions were recorded between 2023 and 2025, reflecting continued low activity in the market.

As indicated in our 2026 European Hotel Valuation Index, Sofia hotel values rose by around 0.8% in euro terms in 2025.

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

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Change In Value For Market: (€Euro)

Sofia RevPAR Change (€Euro)

Sofia 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)