The Budapest hotel market is set to expand by one thousand rooms in 2010

Regarding room prices, stagnation or slight decline can be observed. Decrease in prices is more characteristic of higher price categories. Stagnation is due to the high forint/euro exchange rate, as well as the decrease in VAT guidelines for hospitality services. In general, Budapest hotel room rates count as competitive in the region: the average room rate for a five star hotel in Budapest is €118, four star is €58 and three star hotels are €35.

Pécs can be featured from a development viewpoint, as numerous hotel projects are being constructed as a result of the many programs and events stemming from being Europe’s Cultural Capital of the year. Besides Pécs, European Union backed hotel developments can be found mostly near thermal bath sites.

„We can expect several hotel handovers in Budapest as well during the course of 2010, mostly in the higher-end hotel segment. These handovers are mostly a result of development projects initiated before the start of the crises. Among others, this year we can expect handover of the four star Marriott Courtyard, the Alta Moda Fashion Hotel, the Eurostars Hotel and the Continental Hotel Zara. In the five star segment, Thermal Hotel Rácz and Buddha-Bar Klotild Palace are preparing to dominate the market. The hotels mentioned above make for 1000 new rooms for the Budapest market themselves. – said Norbert Szircsák, Analyst in Valuation and Market Research, on Colliers International’s market review of the Budapest hotel market.