Budapest luxury hotel market shows signs of recovery
According to a study of the hotel market in Central and Eastern European capitals by commercial properties firm CB Richard Ellis, hotels have been under enormous pressure since summer 2008. Both the occupancy rate and the average daily rate (ADR) fell in the first quarter of 2009.
Occupancy rates in Bratislava, Budapest and Prague fell by more than 20% yr-on-yr (Bratislava -25.8%, Budapest -24.1%, Prague -22.9%) in the first quarter of 2009.
Significant growth on the Budapest hotel market
Despite these unsurprising but sobering figures, Adrienne Konthur, managing director of CBRE Hungary, stressed that there will be significant growth on the Budapest hotel market both this year and next year.
International firms remain interested. Although the indicators for hotel additions in the region are weak compared to previous years, international firms remain interested. Budapest is regarded as a mature hotel market in all categories.