Budapest breaks records: hotel market figures reach levels not seen since the pandemic

According to experts, the demand is characterised by

a high number of foreign visitors, balanced occupancy rates and a steadily growing supply.

In the first eight months of this year, over 6.2 million guest nights were spent in Budapest hotels, which is a 5.2% increase compared to the same period last year. By the end of August, over 2.6 million guests had chosen to stay in hotels, marking a 7% year-on-year increase.

Based on this, CBRE analysts predict that the number of hotel guest nights this year will exceed the record set six years ago.

Summer less successful for hotels, greater for Airbnb

Growth was more moderate during the summer months, with the number of nights spent in hotels increasing by only 2% compared to the previous summer. Between June and August, 42% of guest nights were recorded during the period under review.

Between the beginning of the year and 31 August, all types of accommodation in Budapest – including hotels – registered nearly 11.5 million guest nights, which corresponds to an 8% annual increase.

Although 55% of guests still prefer hotels, demand for other types of accommodation and private lodgings has grown spectacularly. The number of guests staying in these types of accommodation increased by 24% compared to the previous year, whereas the number of hotel guests only rose by 7%.

During the summer months, demand for hotel accommodation rose by 2%, while alternative accommodation, including Airbnb, recorded an 11.5% increase.

According to CBRE's analysis, this difference is partly due to the fact that this type of accommodation is mainly chosen by tourists on holiday, whereas traditional hotels experience strong business traffic mainly in the spring and autumn.

The research also revealed that demand in the capital continues to be heavily dominated by foreign visitors, who accounted for 86% of guest nights.

Many people are coming from Great Britain, Chinese tourism is growing

From January to August, the top ten sending countries were the United Kingdom (11%), the United States (7%), Germany (7%), Italy (7%), Spain (5%), Israel (7%), Romania (4%), France (4%), Poland (3%) and China (4%).

The CBRE report revealed that the number of nights spent by Chinese tourists increased by 17.4% year-on-year. Although experts observed a 2.4% decline during the summer months, 44% of Chinese demand occurs outside the summer season, supporting the significant growth of Chinese business tourism. Another positive development is the 58% increase in the number of overnight stays by Israeli tourists compared to the same period in 2024, indicating a strong recovery following the uncertainty caused by the war.

New hotels, growing international brand presence

There are currently 234 hotels operating in Budapest, offering travellers more than 23,000 rooms. Six new hotels with a total of 465 rooms have opened so far this year, representing a 2% increase in supply. The average size of these new hotels is 77 rooms, reflecting the growing popularity of boutique-style establishments.

The expansion of international hotel brands continues, with three of the newly opened hotels belonging to major chains: Radisson with the 71-room Radisson Collection Basilic, Accor with the Tribe Hotel Budapest Airport, and with its hybrid hotel & hostel concept, Jo&Joe, which was renovated this year.

An additional 20 hotels and around 2,800 new rooms are expected to be completed over the next three years, which could result in an average annual increase in supply of almost 3%.

With projects at various stages of development, an additional 1,800 rooms could be added in the near future. Next year is also set to see a number of new hotels open. According to plans, the 102-room St. Regis Hotel, located on the site of the former Buddha Bar, is set to open in 2026. The conversion of the former Sofitel hotel is also expected to be completed by the end of the year, with the property reopening as the 348-room SO/ hotel, which belongs to the Accor hotel chain.

Stable occupancy, easing average rates

A moderate price correction was observed during the year: the average daily rate (ADR) for the summer months decreased by 3.4% compared to the previous year, reaching €127. This decline was primarily driven by a 4.5% drop in June and a 13.6% drop in July, offset by an increase of 12.2% in August. Last year, large-scale concerts by artists such as Coldplay, Ed Sheeran and Lenny Kravitz also contributed to the high prices.

In July 2024, the average price in Budapest was €137, compared to just €118 this July.

However, occupancy rates remained stable at around 77.1% in both years under review, reaching 82.1% in August 2025. Between January and August this year, average prices increased slightly, while average occupancy increased by 4.7 percentage points to reach 70.5%.

Several new hotels have opened or are set to open in the coming years, demonstrating significant investor interest in the hotel market. The number of business trips is also increasing, primarily due to substantial Chinese investment, enabling Budapest to gradually close the gap with Prague and Vienna in this area,

according to Balázs Csörget, senior hotel advisor at CBRE Hungary.

With a presence in more than 100 countries, the Dallas-based CBRE Group is the world's largest commercial real estate services and investment firm based on revenues in 2024.

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