SAJTÓKÖZLEMÉNYEK | | Increasing number of foreign guests for Hungary

Colliers International: Increasing number of foreign guests for Hungary
Budapest | 2012-08-22 | Colliers International

The Hungarian office of Colliers International has published its latest Hotel Market Report, which states, that in the first half of 2012, hotels registered a 4% increase in the number of guests and a 6% increase in guest nights compared to H1 2011.

"Four-star hotels continued to perform exceedingly well (a 15% rise in guest numbers), while three and five-star units were mostly unchanged." - said Norbert Szircsák, researcher and valuation consultant at the real estate advisory firm.

The increase in guest numbers in the four-star category is due in part to the significant increase in supply. Overall occupancy rates started to rise again from 2010 levels, but still remained below peak 2007 figures. Total gross revenues increased by 7% in comparison to 2011, thanks to a weaker EUR/HUF exchange rate.

Among the larger developments in the pipeline, the ETO Park Hotel has been opened recently, while the Sheraton in Kecskemét is scheduled for 2013. In the countryside, 3 hotels were refurbished or expanded thanks to EU funds. In Budapest, Mellow Mood is opening three new hotels. The five-star Buddha Bár Klotild Palace and the four-star Estilo Fashion Hotel have already opened, while the Mirage Fashion Hotel on Hősök tere will be open soon. The four-star Zenit Hotel in central Budapest opened with 97 rooms, and the opening of the Váci út unit of Park Inn by Radisson is expected to open in autumn. The long-delayed opening of the Rácz Hotel remains uncertain, although the issue seems to have reached a settlement.

The number of foreign guest nights increased by 10%, while domestic guest nights only by one percent. Room occupancy registered 42.8%, up only 0.2 percentage points from the same period of 2011. Overall, the number of guest nights in Budapest increased by 8%, while at Lake Balaton guest nights remained the same as last year.

"Signs from H1 2012 look promising for the hotel market, thanks to foreign guests. Domestic tourism usually picks up in the summer months which will be boosted in part by the use of the SZÉP cards already issued. The expansion of supply will slow down, opening the way for increased occupancy at the existing supply level. The hotel development pipeline will also see a slowdown, due to the lack of financing available for new developments, even with the support of EU funds." - summarized Norbert Szircsák.


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