CEE 6 Hotel Market Snapshot: Growth, Investment and Budapest in focus

April 9, 2026

The CEE 6 hotel market delivered strong growth in 2025, with RevPAR up 8.9% year-on-year, supported by rising rates and occupancy, while investment volumes surged by 170%, led by the Czech Republic and Hungary. Prime yields compressed across key markets, and momentum is set to continue into 2026 amid improving financing conditions. Budapest stood out as a top performer, combining solid operational growth with robust investment activity and a strong development pipeline.

CEE 6 Hotel Market Snapshot: Growth, Investment and Budapest in focus

CEE-6 Overview

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.

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 the 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 benefitted 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.

Budapest Overview

In 2025, Budapest recorded further performance recovery, with RevPAR increasing by 5.8% versus 2024 and 26.4% versus 2019 pre-Covid level. The year-on-year growth was mainly driven by a 4.8% increase in Occupancy, while ADR grew below inflation, at 1.0%. Comparing to 2019 pre-Covid level, Occupancy is still 6.2% behind, while ADR grew by 34.8%.

2025 continued to mark a year of high performance for the Hungarian capital as compared to its peers. Budapest was the second leader among CEE-6 capitals for highest ADR and RevPAR after Prague, whilst ranking third in terms of highest Occupancy. Regarding the recovery index from Covid-19, Budapest ranked third in terms of ADR recovery to 2019-levels among the CEE-6 capitals. However, it ranked only 6th in terms of occupancy and 4th regarding RevPAR.

Budapest recorded around EUR 176 million in hotel investment volume in 2025, accounting for approximately 15% of total CEE-6 transaction volume of EUR 1.2 billion. This represents a 148% increase versus the transaction volume achieved in 2024. According to our database, the above-mentioned investment volume was generated by 6 transactions. Marriott Budapest, the largest hotel transaction in Hungarian history, was sold at c. EUR 115 million. The transacted properties are positioned in the Upper Upscale, Upscale, and Upper Midscale segments.

In terms of supply, 11 hotels entered the Budapest market in 2025, out of which 1 was a refurbishment and 2 were rebrandings. Some of the most notable openings of 2025 were the You Hotel Budapest (Handwritten Collection), the Radisson Collection Basilica Budapest and the JO&JOE Budapest. 2026 promises to be a similarly fruitful year with 5 scheduled openings, 1 refurbishment and 3 rebrandings. By 2028 it is estimated that over 2,000 rooms from the pipeline will be added to the current supply, with additions expected in all segments, from midscale to luxury.

Alina Cazachevici MRICS, Partner, Head of Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield: “Budapest’s hotel market continues to outperform, with tourist overnights up 7.5% year-on-year and RevPAR exceeding pre-Covid levels by 26.4%, underpinned primarily by resilient international demand. This operational strength is translating into growing investor appetite for hospitality assets, as evidenced by rising transaction volumes. Nevertheless, political and macroeconomic uncertainty continues to temper sentiment and influence pricing expectations. In line with broader CEE trends, the market remains predominantly driven by domestic capital, while international investors remain selective and return focused.”

Hanna Toth, Consultant, Valuation & Advisory, Hospitality & Alternatives, CEE/SEE at Cushman & Wakefield: “Budapest’s hotel sector is entering a dynamic phase of growth, with the city accounting for all new supply delivered in the CEE-6 market in the second half of 2025. The arrival of new internationally branded properties alongside lifestyle concepts reflects the broadening profile of the destination. Looking ahead, a healthy pipeline of new openings, and rebrandings through 2026 and beyond will continue to enhance the city’s hospitality offering and reinforce Budapest’s status as one of CEE’s key tourism markets.”

Geoff Hargreave, Partner, Capital Markets, Hungary at Cushman & Wakefield: “The hotel market in Budapest enjoys several favourable tail winds. Notably, we are seeing:

Increasing regulatory pressure, both across the EU and in Hungary, on the short term private “AirBnB” type rental sector.

Infrastructure improvements to better connect the airport to the capital, via rail and an expanded highway, and increasing the airport’s capacity through the addition of a new pier and terminal.

Together, these factors will see the perfect storm of decreasing supply of accommodation and an increase in demand which should lead to stronger key performance metrics over the next decade.”