The hotel market in Bucharest is poised for significant growth, with over 1,000 new rooms expected to be added to the city’s accommodation capacity by 2027, according to a new report from real estate consulting company Cushman & Wakefield Echinox. This projected expansion comes on the back of a strong performance in 2024, as key indicators such as RevPAR (Revenue per Available Room) and occupancy rates continued their upward trajectory.
The average daily rate (ADR) in Bucharest hotels surpassed the EUR 100 threshold for the first time, making it the fastest-growing ADR among the capitals of Central and Eastern Europe. Despite this growth, the city’s hotel occupancy still trails its 2019 pre-pandemic levels by four percentage points.
Nonetheless, the 7.3% rise in ADR helped boost RevPAR by 11.8% compared to 2023, and by 12.6% over 2019 levels.
The positive performance is encouraging investors across all segments, from midscale to luxury, to enter the market, Cushman & Wakefield Echinox said.
Two new hotel openings and one major refurbishment are scheduled for 2025. One of the most notable openings has already taken place: the Corinthia Grand Hotel du Boulevard Bucharest, which is now welcoming guests. The previous year also saw the opening of Ramada by Wyndham Bucharest Otopeni Airport.
Regionally, Bucharest’s growth aligned with broader trends across the CEE-6 capitals - Bucharest, Bratislava, Budapest, Prague, Sofia, and Warsaw - which collectively saw an 8.9% increase in RevPAR in 2024, mainly driven by a 4.7% increase in ADR and a moderate rise in occupancy.
Alina Cazachevici MRICS, Partner, Head of Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield, stated: “Bucharest hotel market performance continues its positive trajectory with RevPAR surpassing pre-Covid level by 12.6%. Further increase in performance is expected thanks to Romania entering the Schengen Area, however, the uncertainty around geopolitical situation still is an important factor to be taken in consideration.”
Romania saw a notable boost in hotel transaction volumes in 2024, reaching around EUR 50 million - almost double the volume from the previous year and accounting for 13% of the total EUR 399 million recorded across the CEE-6.
Among the seven transactions recorded nationwide, two were in Bucharest: Hotel Ambassador, which is set for significant refurbishment, and Hotel Sir Royal Bucharest. Five other deals involved properties located outside the capital, with most assets positioned in the upscale and upper upscale segments.
irina.marica@romania-insider.com
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