The View 7th edition

43

12,0%

10,0%

8,0%

Foreign Visitors in Budapest Foreign Visitors is Rest of Hungary

6,0%

4,0%

2,0%

Domestic Visitors

0,0%

J M Mj

Jl Sz N J M Mj Jl Sz N J M Mj Jl Sz N J M Mj Jl Sz N

-2,0%

2015.

2016.

2017.

2018

Annual Growth of Guest Nights per Type of Visits

Source: KSH, CBRE Research

BUDAPEST AS FRONTRUNNER IN CEE IN TERMS OF HOTEL KPIS Measured by all key performance indicators (KPIs), the Budapest hotel market recorded another remarkable year, outperforming most of the Eurozone’s capital cities and slowly catching up to well established tourism destinations in Western Europe. In terms of ADR (Average Daily Rate), Budapest averaged EUR 132 last year, which indicates a slight slowdown compared to double-digit increases witnessed in recent years. Still, the 7% y-o-y expansion ranks the Hungarian capital second only to Vienna (+7.1%) within Central Europe. Amongst CEE capitals, Budapest registered above average revenue growth and remained less affordable than Bucharest (EUR 103), Prague (EUR 111) and Warsaw (EUR 112), while Vienna is now quoted at EUR 173 on average. The average price per available room rose gradually in frequently visited tourism destinations in the European Union, coupled with decreasing occupancy rates in several CEE capitals: Prague (77.6%, - 1.9pps), Warsaw (75.2%, -2.5pps) and Bucharest (80.8%, -0.4pp) all registered some decline in the number of units sold last year. Budapest hotels also reported a marginal decrease (77.9%, - 0.2 pps) after following a period of continous rise. Vienna was an outlier with more than 4% improvement in overall occupancy. RevPAR (Revenue per Available Room)

figures have also continued to evolve during the past 12 months, which was largely backed by the increasing inflow of wealthy tourists from all around the world. Budapest registered 6.6% y-o-y RevPAR growth, which is less than the level measured in Vienna (+13.2%), but still outperforming Prague (-0.8%), Warsaw (-4.1%) and Bucharest (+2.3%). Revenues fromspecialty income – such as bar and catering services (F&B RevPAR) – grew even faster and showed double- digit growth, ranking Budapest first amongst Central European capitals. TrevPAR (Total Revenue per Available Room) and GOPPAR (Gross Operating Profit per Available Room) indicators also climbed by 8.0% and 8.5% in 2018, reaching EUR 153 and EUR 64, respectively. TrevPAR levels in Budapest are consistently above the average registered

Domestic Visitors 51%

Foreign Visitors in Budapest 29%

Foreign Visitors is Rest of Hungary 20%

Guest Nights in Hungary: 30.9 million / year

Source: KSH, CBREResearch