Hotel tourism
The hotel and leisure sector has become an increasingly popular development option, as Budapest, and indeed Hungary, attract rising numbers of turists. Budapest Ferenc Liszt International Airport broke its passanger traffic record last year, handling 17.6 million people.
On the back of this, Budapest has a significant hospitality pipeline, with several international brands looking to enter the market, notably in the high-end and mid-range segments.
Upper Upscale
The Upper Upscale Radisson Collection Hotel Basilica Budapest is scheduled to open with 71 rooms this year. The Upscale Mamaison Vibe Hotel Budapest Downtown is set to deliver 96 rooms in the fourth quarter of the year.
“We think that demand is strongly back; developments have started, and there are also investor inquiries coming into the hotel market,” comments Peter Takacs, a hotel and leisure specialist and partner at Newmark VLK Hungary. “Altogether, there are around 1,600 rooms either under construction or at the planning stage in Budapest. I think that international brands are very eager to plant their flags in Budapest. Therefore, it is not difficult to find a good brand for your hotel if you have a good project,” he says.
“But there is a scarcity of available land or property for potential projects within the center of Pest. We think that there is certainly space for more development and supply in the three and four-star segment,” Takacs adds. At the luxury end of the market, the St. Regus Hotel Budapest, a Marriott International brand, is due to deliver a 12,000 sqm hotel with 102 rooms and suites, a spa and restaurants in a redevelopment of the historic Klotild Palace, a UNESCO World Heritage site, in the first half of 2026. The Qatari Ali Bin Ali group owns the building, which was previously the site of the Buddha-Bar Hotel Budapest. In the Upper Upscale segment, BDPST-owned Equilor Asset Management has acquired the Budapest Sofitel hotel overlooking the Danube and is redeveloping and refurbishing the building. It will be relaunched as Accor’s luxury lifestyle brand, SO/, featuring 350 rooms, 56 suites, four food and beverage outlets, a rooftop restaurant, and a spa, fitness, and wellness area. It is currently slated to open next year.
“Budapest needs to offer more luxury experiences to attract more luxury travelers. This is particularly the case with regard to retail with the need for more brands and boutiques,” says Takacs.
“The provision of fine restaurants and dining is great, but retail is still lacking. I am sure this will evolve, but it is just taking longer than we thought.”
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