The View 7th edition

44

140

90%

80%

120

70%

ADR

100

60%

80

50%

RevPAR

40%

60

EUR

30%

Occupancy rate (right)

40

20%

20

10%

0

0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Occupancy, ADR and RevPAR in Budapest Hotels

Source: HotStats, CBRE Research

STRONG HOTEL PIPELINE BUT CONSIDERABLE DELAYS IN DELIVERIES The final volume of hotel deliveries in 2018 fell extremely short of our earlier forecasts, as only four schemes comprising 360 modern rooms got handed over, all of which are located in the capital. An additional eight hotels with ca. 1,000 rooms were originally scheduled for late 2018 but have been moved to 2019 due to considerable shortages in both the construction sector and general labour

in Bucharest (EUR 129), Prague (EUR 130) and even Warsaw (EUR 125), while Vienna still holds the top position in the CEE at EUR 212. Despite the consistent increase in domestic tourism along with outstanding KPIs in the 4-5 star segment, the total volume of capital invested into hotel assets remained negligible throughout 2018. CBRE registered two acquisitions in the countryside by domestic investors totalling ca. EUR 22 million altogether. However, the strong completion pipeline and favourable market environment creates opportunity for international investors to enter the market in the foreseeable future.