Bucharest leads CEE in hotel revenue growth, up 12 percent in 2025

The region recorded an 8.9% year-on-year increase in RevPAR in 2025, supported by a 4.6% uplift in ADR and a 2.7pp. rise in occupancy. The growth was particularly notable in Bulgaria and Romania, both achieving double digit RevPAR gains. At the city level, Bucharest (12.0%), Warsaw (9.1%) and Prague (8.3%) posted the strongest RevPAR growth in 2025, while Prague and Budapest ranked as the highest performing markets in terms of nominal RevPAR.

In 2025, Bucharest ranked third amongst CEE-6 capitals for highest ADR and RevPAR after Prague and Budapest, whilst ranking fourth in terms of occupancy. Compared to 2019, the pre-pandemic benchmark year, Bucharest hotel RevPAR is approximately 26% higher, while ADR has surpassed pre-pandemic levels by more than 27%. Occupancy rates remain slightly below 2019 levels, but the gap has narrowed to around 1%.

The year-on-year growth was mainly driven by a 6.8% increase in ADR, while Occupancy grew at c. 5.0%. 

This strong market performance continues to encourage interest in new hotel developments. By 2028, it is estimated that over 2,000 rooms will be added to the current supply in Bucharest, with additions expected in all segments, from midscale to luxury, representing an increase of around 17%.

Among the projects announced for delivery over the next three years are Hyatt Place & Hyatt House (270 rooms), Swissotel Bucharest (200 rooms), Promenada Mall Hotel (200 rooms) and Novotel Living Bucharest Baneasa (150 rooms). Two major openings are scheduled for 2026 - Mercure Bucharest Cantemir (operational already) and Hilton Garden Inn Militari - adding a total of 165 rooms to the market.

One of the most important openings of 2025 was the five-star Corinthia Grand Hotel du Boulevard Bucharest, located in the city centre. The property has recorded some of the highest room rates in the capital, contributing to the increase in both average daily rate (ADR) and RevPAR levels across the Bucharest market.

From an investment perspective, Bucharest recorded EUR 46.3 million in hotel investment volume in 2025. This represents an increase of c. 182.0% versus the transaction volume achieved in 2024. According to our database, the above-mentioned investment volume was generated by 3 transactions (i.e. Hotel Duke 2-asset portfolio and Hilton Garden Inn Bucharest Airport). The transacted properties are positioned in the Upper Midscale, Midscale, and Upscale segments.

The CEE hotel investment market demonstrated significant growth in 2025, with investment volumes increasing by 170% year-on-year. This growth was primarily driven by heightened activity in the Czech Republic, followed by Hungary. Most hotel transactions in the region involved Upper Upscale assets, followed by Upscale properties. The positive momentum is expected to continue into 2026, with several deals already completed and others in various stages of the disposition process.

Throughout 2025, prime yields in Prague, Budapest and Bucharest hotel markets experienced some compression. The hotel market of the rest of the CEE-6 capitals (Warsaw, Bratislava, Sofia) remained relatively stable, although prime assets in top-tier locations benefited from some yield tightening. Factors such as stabilizing inflation, improved access to financing, and increased capital inflows suggest the potential for further yield compression as we transition into 2026.