CEE Hospitality MarketBeat Reports

CEE-6 HOSPITALITY MARKETBEAT H2 2025

• The CEE hotel investment market recorded strong growth in 2025, with investment volumes rising 170% year-on-year. This expansion was driven mainly by heightened activity in the Czech Republic, followed by Hungary. Most transactions focused on Upper Upscale assets, with Upscale hotels also highly active. With several deals already completed and others at various stages of the disposition process, this positive momentum is expected to continue into 2026.

• Throughout 2025, prime yields in the hotel markets of Prague, Budapest, and Bucharest experienced a degree of compression. In contrast, the remaining CEE‑6 capitals—Warsaw, Bratislava, and Sofia—remained relatively stable, though prime assets in top‑tier locations still saw some modest tightening. With inflation stabilizing, financing conditions improving, and capital inflows increasing, the outlook points to the potential for further yield compression as we move into 2026.
  
  
• In H2 2025, around 14 hotels and serviced apartment properties, totaling approximately 1,130 rooms, opened across the CEE‑6 capitals. These additions included branded entries such as the You Hotel Budapest, as well as roughly 100 newly renovated rooms at the Radisson Blu Hotel Bucharest. New openings were concentrated in the Upper Upscale and Upscale segments, which accounted for the most notable supply growth. Overall room supply in the region grew by 2.7% year‑on‑year, driven primarily by expansions in Warsaw (+5.5%), Budapest (+2.8%), and Prague (+2.2%). This upward trend is expected to carry into 2026, with Warsaw anticipated to remain the leading market.
  
  
• In 2025, the region posted an 8.9% year‑on‑year increase in RevPAR, supported by a 4.6% rise in ADR and a 2.7‑percentage‑point uplift in occupancy. Growth was particularly strong in Bulgaria and Romania, where RevPAR rose at double‑digit rates. At the city level, Bucharest and Warsaw recorded the fastest RevPAR growth in 2025, while Prague and Budapest stood out as the strongest overall performers in terms of absolute RevPAR.