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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

Sofia, Bulgaria’s capital and largest city, is the country’s primary economic engine, with a population of approximately 1.3 million as of 2024. It hosts the Bulgarian National Bank, the Bulgarian Stock Exchange and the headquarters of many of the country’s 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, the country’s sole international airport, reached a record of over 7 million passengers pre-pandemic and recovered to the same level in 2023. Growth continued into 2024, with passenger traffic reaching close to 8 million. The increase has been driven by Sofia’s growing appeal and the expansion of low-cost carriers. The airport serves as a hub for BH Air, Bulgaria Air and Bulgarian Air Charter, while Ryanair and Wizz Air use it as a regional base. In 2024, Ryanair introduced new routes to Alicante, Bristol, Copenhagen, Skiathos and Valencia, bringing its total destinations from Sofia to over 40.

With occupancy levels typically around percentages in the low 60s, Sofia’s hotel market recorded a RevPAR compound annual growth rate (CAGR) of 5% from 2016 to 2019, driven primarily by average rate gains. 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, while average rates remained relatively stable, the market saw a notable increase in demand, leading to a full RevPAR recovery in euro, exceeding 2019 levels in real terms (considering the euro inflation). Occupancy levels continued to gradually improve. We note, however, that in local currency, only average rates have caught up with inflation.

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 2024, and the country’s euro adoption is planned for 1 January 2026. 

Sofia’s hotel market comprises approximately 130 properties with around 8,100 rooms. The hotel inventory has seen very few changes in the last decade, which has consisted mostly of hotel conversions and branding. However, over the next five years, a moderate 500 new rooms are expected to enter the market through four projects, representing a 7% increase in supply. Anticipated openings include the 100-room Nobu Hotel and Restaurant Sofia (April 2026) and the 152-room Holiday Inn Express Sofia Airport (originally expected to open in 2025 but has most likely been delayed).

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. No further transactions were recorded in 2023 or 2024, reflecting continued low activity in the market.

As indicated in our 2025 European Hotel Valuation Index, Sofia hotel values rose by around 3.6% in euro terms, and remain around 13.0% below 2019 levels.

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

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
Market Supply Growth

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 2078787722 (w) +44 0 7725781037 (m)
	Margherita Rivetti [email protected] +44 0 278787754 (w) +44 0 7955271797 (m)
	Tabitha Watkins Analyst [email protected] +44 0 2078787724 (w) +44 0 7562956921 (m)