International real estate consultancy CBRE expects Hungarian tourism to recover from the COVID crisis by spring 2022. As rural areas continue to benefit from domestic tourism, the capital Budapest can score points in terms of number of clients with its best hotels.
This article originally appeared on our sister site, Ungarn Heute. Translation by Julia Tar
Summer data indicates a positive trend in the domestic hospitality industry, according to the CBRE group study. Hotel occupancy rates are already 90-95% of pre-pandemic levels, and revenues have increased 10-12% alongside average room rates. Hotels outside Budapest have already reached pre-coronavirus crisis levels thanks to strong domestic tourism.
Danubius Hotel Budapest rented after 15 months without operation
While the reopening has brought financial stability back to some in the service sector, hotels appear to be having a harder time.
Budapest tourism has been boosted mainly by the European Football Championship. However, the recovery is much slower there than in the countryside, as nearly 95% of visitors to the capital are foreigners. In addition, conferences and congresses could not take place and groups of tourists were also missing. The study adds, however, that many new hotels have opened in the capital this summer, even of higher quality, so that average room rates have already reached those in Lisbon and Barcelona.