Bucharest hotel market to add over 1,000 rooms by 2027

The Bucharest hotel market recorded further performance recovery in 2024, in terms of RevPAR and occupancy rate, while the ADR finally surpassed the milestone of 100-euro average daily rate, according to the real estate consulting company Cushman & Wakefield Echinox.

Market performance encourages investments in new hotels, thus by 2027 it is estimated that over 1.000 rooms will be added to the current supply in Bucharest, with additions expected in all segments, from midscale to luxury.

2025 promises to be a more fruitful year with two scheduled openings and one refurbishment and extension.

One of the most important openings of 2025 already took place: Corinthia Grand Hotel du Boulevard Bucharest is now receiving guests.

In 2024 one new hotel entered Bucharest market: The Ramada by Wyndham Bucharest Otopeni Airport.

The growth of the hotel market in Bucharest in 2024 was in line with the trends in Central and Eastern Europe (CEE – 6 – Bucharest, Bratislava, Budapest, Prague, Sofia and Warsaw), with the RevPAR increasing by 11.8% versus 2023 and 12.6% versus 2019 pre-Covid level.

The ADR finally surpassed the milestone of 100-euro average daily rate, registering a 7.3% growth in 2024 – faster ADR growth amongst CEE-6 capitals in 2024, while the occupancy is still lagging behind the 2019 level by 4pp.

The region saw a notable 8.9% increase in RevPAR in 2024, largely driven by a 4.7% rise in ADR. Meanwhile, occupancy saw a 2.5 pp. improvement from 2023, reaching 65.2% in 2024 (4.7 pp. behind 2019 levels).

Alina Cazachevici MRICS, Partner, Head of Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield: “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 for future development of Romanian hotel market, including investment activity.”

In terms of transactional activity, Romania recorded around €50 million in hotel investment volume in 2024, accounting for approximately 13% of total CEE-6 transaction volume of €399M.

The 2024 investment volume represents a 93% increase versus the transaction volume achieved in 2023 and was generated by 7 transactions, out of which two in Bucharest: Hotel Ambassador, a property that will undergo a significant refurbishment, and Hotel Sir Royal Bucharest.

At the same time, a positive signal is that five transactions were recorded for properties located outside the country capital. Most the transacted properties are positioned in the Upscale and Upper Upscale segment.

Throughout 2024, prime yields in the CEE hotel investment market held steady, with a slight tightening observed for top-tier assets in key locations. Stabilizing inflation, lower bank financing costs, and growing capital inflows indicate the possibility of further yield compression moving into 2025.