Budapest Hotel Market Spotlight YE June 2025 | By Nicolas Horky and Alina Cazachevici

The sample of branded full-service hotels in Budapest recorded a large increase in profit during the 12-month period ending in May 2025. The GOP per available room (GOP PAR) rose by 25.9% (YoY), driven by a 15.9% revenue increase and despite rising expenses (+10.0%).
Rooms revenue grew by 14.6% (YoY), resulting from a 6.7% rise in occupancy and a 7.6% increase in ADR to €161. F&B revenue increased by 14.7%, reaching €56 per occupied room POR.
Occupancy rates increased primarily in February, November, and January by +18.0%, +12.3%, and +10.9% respectively.
Total expenses increased by €10.0 PAR, (+10.0% YoY), driven by Payroll €6.8 (+16.6%), meanwhile Utilities declined by €1.3 (-11.2%).
The constrained supply supported the performance growth. The total supply increased by 365 rooms YoY (+0.6% weighted by opening date) due to three hotel openings, and no recorded closures in the period.
Since the increase in total revenue was higher than the increase in total expenses, 60.3% of additional revenue flowed through to the bottom line. As a result, the nominal GOP increased by 25.9%, reaching €73.8 PAR. The GOP margin increased 3.2 percentage points reaching 40.2%.

During the 12-month period ending May 2025, there were three hotel openings in Budapest, increasing the total supply by 365 rooms, representing a room supply growth of 0.6% (weighted by opening date)
Two of the new hotels opened in the city centre, accounting for 54.3% of the new supply, meanwhile 45.7% of the new rooms opened near the Ferenc Liszt Airport.
All the new developments are branded hotels. Two hotels opened within the Upper Upscale and one in the Midscale classes, representing 54.3% and 45.7% of room supply, respectively.
Notably, Ritz-Carlton Budapest was rebranded as Al-Habtoor Palace at the beginning of the year 2025. This development did not affect room supply in the city, as the hotel remained open. However, it reduced the branded hotel supply within the luxury hotel class.
No major hotel closures were announced during the period.
While not affecting the hotel supply in YE May 2025, two additional hotels opened in the centre of Budapest in June and July 2025. Namely, the opening of Park Plaza Budapest and the Mamaison Hotel Chain Bridge, respectively.
The following additional hotels are expected to open during the reminder of 2025: M4 Hotel Comfort Chain Bridge in Oktober, Numa Hotel in November and K36 Hotel in December.

The labor expenses in the selected Budapest hotels increased during the last 12-months (YE May 2025) by €6.8 PAR (+16.6%), reaching €47.9 PAR. The F&B department led the growth, with payroll rising by €3.2 PAR (+20.9%), followed by the Rooms department (+€2.0, +17.6%).

Total COS increased by €2.4 PAR (+14.2%), primarily within the F&B (+€1.8 PAR, +17.6%) and the Rooms department (+€0.6, +10.9%).

Other expenses increased by €2.1 (+6.9%) to €32.8 PAR, driven by higher other cost within S&M (+€0.8 PAR) and F&B (+€0.7 PAR) departments. The overall cost increase was partially offset by a €0.3 PAR reduction in the A&G department.

Utility costs decreased by €1.3 PAR (-11.2). Gas and electricity expenses decreased by €1.6 and €1.1 PAR, respectively, while water costs, alongside other utilities, increased by €0.7 PAR.