lh x cw market report A4_23.03.02 v34 interactive72

PERFORMANCE – THE STRONGEST MARKET IN CEE

In 2022, Budapest has again emerged as the best-performing hotel market among the CEE capital cities in terms of RevPAR, with an occupancy level of 61% and an ADR of EUR 106, resulting in a RevPAR of EUR 64. This marks a remarkable improvement of +117.7% compared to 2021 and a positions Budapest at 90.1% compared to its 2019 performance levels. Despite a 16.5% improvement in ADR compared to 2019, there will be need for

improvement in 2023. Since the VAT reduction of accommodation services from 18% to 5% in 2020, the increasing energy costs, cost of sales (particularly in food and beverage outlets), and the ongoing labor shortage paired with a strong demand for salary adjustments, will drive the need for hoteliers to pass on some of the costs to guests whilst working towards a more efficient and sustainable operating model. Again, no pressure, no diamonds.

BUDAPEST HOTEL PERFORMANCE INDEX (2019 = INDEX YEAR) Source: STR, based on values in EUR until january 2023

140%

120%

100%

80%

60%

40%

20%

0%

Jan

Jan

Jan

Jan

Oct

Oct

Oct

Feb

Feb

Feb

Dec

Dec

Dec

Nov

Nov

Nov

May

May

May

Aug

Aug

Aug

July

July

July

Sept

Sept

Sept

June 2020

June 2021

June

April

April

April

March

March

March

2022

Occupancy Index

ADR Index

RevPAR Index

100% line

Hospitality

74