Hotels in Bucharest recorded an average annual growth of 10% in the number of overnight stays in the period 2013-2017, the highest growth rate in Central and Eastern Europe, but ranks from other capitals in the region to the actual number of nights spent of tourists, according to the CEE Hospitality Snapshot 2018 report by the Cushman & Wakefield real estate consultancy.
The entire hotel market in Central and Eastern Europe registered a positive development. Bucharest is characterized by an average increase in the number of overnight stays of 10.1% per year between 2013 and 2017, the highest in the region.
Thus, Bucharest is surpassing, as growth rate, the main capitals in the region such as Vienna, Prague, Budapest, Warsaw, Bratislava or Sofia. By contrast, with a 3.2 million overnight stays in 2017, Bucharest is still a considerable distance from Prague (18 million overnights), Vienna (15 million), Budapest (10 million) and Warsaw (6 million), surpassing only Bratislava (2.7 million) and Sofia (2 million).
“Warsaw needs to improve its visibility as a tourist destination. Similarly, demand in Bucharest is generated in particular by the corporate segment. Despite this, the average occupancy rate in Bucharest is quite high (73.6% in 2017), with top international hotels registering over 80% occupancy rates, being fully occupied for six months per year “, according to consultants Cushman & Wakefield.
In Bucharest, average hotel rates were 78.1 euro / night during the year 2017, higher than in Sofia (76.1 euro / night), Warsaw (75.4 euro / night) and Bratislava (63, 6 euros / night), but below Vienna (96.9 euros / night), Prague (87.5 euros / night) and Budapest (84.3 euros / night), according to STR Global research firm the hotel industry, quoted by Cushman & Wakefield.
By adjusting the average rate with the occupancy rate (calculated by the STR at 73.6% for Bucharest in 2017), it appears that Bucharest hotels booked an average of 57.5 euro / night for each room available, increasing with 6.4% compared to the previous year, the indicator (RevPAR), which continued to grow and in the first half of this year, by 4.7%, to 60.2 euro / night.
The positive results recorded by hotels in the region have attracted both developers’ attention and investors looking for higher returns over the past few years compared to Western markets. While in cities like Prague, Budapest or Vienna are now more difficult to find land or buildings that can be reconverted in hotels, in cities such as Warsaw, Bucharest or Sofia the accommodation capacity will continue to grow in the coming years with a annual average rate ranging between 3.9% (in Bucharest) and 8.5% in Warsaw.
In Bucharest, for the next few years, several hotels are to be opened to be affiliated with international chains, including Courtyard by Marriott, Ibis Styles (Ştirbei Voda), Hotel Indigo (George Enescu – Georges Clemenceau), Corinthia (Grand Hotel du Boulevard), Moxy by Marriott, or Autograph Collection.