No matter whom you ask, Budapest inevitably comes up as one of Europe's finer cities to visit. A little mysterious, a little misunderstood, the city is as captivating and enchanting today as it was when the Ottomans ruled.
According to recent HotStats data, profit per room at hotels in Budapest in March fell by 13.3 percent, in spite of a 5.7-percent increase in RevPAR, as escalating costs hit hoteliers in the Hungarian capital.
Hotels in Budapest were able to successfully record increases across a number of revenue streams this month, including Rooms (+5.7 percent) and Food and Beverage (+1.0 percent) on a per available room basis, which contributed to the 1.8-percent year-on-year growth in TrevPAR (total revenue per available room) to €80.96.
As HotStats pointed out, the performance of hotels in Budapest is further evidence that there is a widening chasm between RevPAR and other key metrics suggesting the industry’s key performance indicator is no longer the best, single measure of the health of the hotel sector.
Marriott sure thinks highly of the city, and announced earlier this year that it would bring the iconic W brand to the city via an agreement with QPR Properties Kft, part of Constellation Hotels Holding. The hotel will be housed in the Drechsler Palace, which will be fully renovated to have 162 guestrooms and suites.
As many as 25 new hotels are slated to open in Budapest over the next six to seven years, adding a possible 2,700 rooms to the city's stock. Currently, Budapest has almost 19,000 guestrooms.