Last year, 10 new hotels opened, adding 819 beds. Currently, around 15 projects with nearly 2,300 rooms are under construction, set to open from 2026 to 2029, including about 1,800 rooms this year alone.

Another 2,000 rooms remain in planning stages and could break ground soon.

“The sustained rise in guest nights has spurred this wave of hotel builds in Budapest. Investors and lenders show clear confidence in the market’s long-term trajectory, evident in the development pipeline,” said Balázs Csörget, head of CBRE Hungary’s hotel team.

Key Developments

More than 80% of rooms under construction tie to international chains. Moxy Budapest Downtown, a Marriott brand, opens this year on Kazinczy Street, followed by Ruby Hotel (now IHG) in the Corvin Palace by year-end.

Upcoming projects include the renovated former Sofitel under another Accor brand and the ex-Buddha-Bar Hotel relaunching as St. Regis (Marriott).

Conversion projects are gaining traction, transforming office buildings into hotels amid high accommodation demand, scarce land, and rising office vacancies. Over 1,000 new rooms from such conversions could join the market between 2026 and 2029.

Regulatory Impacts

New rules curbing short-term rentals are boosting hotels. In District VI, a January 2026 ban on “Airbnb-style” services slashed private accommodations from over 1,800 units (2,500 rooms) in January 2025 to 574 units (927 rooms) by January 2026, per Hungarian Central Statistical Office (KSH) data.

This shift may accelerate aparthotels — hybrid stays with kitchen-equipped apartments, app-based check-ins, and minimal services. “International aparthotel chains are eyeing Budapest expansions, though regulatory tweaks may be needed for clearer operations without receptions or breakfast mandates,” Csörget noted.

Market Outlook

Budapest ranks 19th in Europe for guest nights but leads major cities in growth momentum. Forecasts predict a 11.7% compound annual growth rate (CAGR) from 2024 to 2030, outpacing rivals like Florence.

Investor appetite remains high, especially for properties needing upgrades or rebranding, despite current price gaps between buyers and sellers. While new supply might briefly pressure rates and occupancy, demand is projected to outstrip it long-term, positioning Budapest as a top European contender.
 

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