Marketbeat CEE – H2 2025

INVESTMENT ACTIVITY

The CEE hotel investment market demonstrated significant growth in 2025, with investment volumes increasing by 170% year-on-year. This growth was primarily driven by heightened activity in the Czech Republic, followed by Hungary. Most hotel transactions in the region involved Upper Upscale assets, followed by Upscale properties. The positive momentum is expected to continue into 2026, with several deals already completed and others in various stages of the disposition process.

PRIME YIELDS

Throughout 2025, prime yields in the Prague, Budapest and Bucharest hotel markets experienced some compression. The hotel market of the rest of the CEE-6 capitals (Warsaw, Bratislava, Sofia) remained relatively stable, although prime assets in top-tier locations benefitted from some yield tightening. Factors such as stabilising inflation, improved access to financing, and increased capital inflows suggest the potential for further yield compression as we transition into 2026. 

SUPPLY

In H2 2025, 8 hotels and serviced apartments with 761 rooms opened across the CEE-6 capitals. These include branded properties such as the Movenpick Budapest, as well as the addition of 101 newly renovated rooms at the Radisson Blu Hotel Bucharest. Openings reflected a strong focus on the Upper Upscale and Upscale segments. In 2025, room supply in the region increased by 2.7% year-on-year, primarily due to developments in Warsaw (+5.5%), Budapest (+2.8%), and Prague (+2.2%). This trend is expected to continue in 2026, with Warsaw leading the way.

PERFORMANCE

The region recorded an 8.9% year‑on‑year increase in RevPAR in 2025, supported by a 4.6% uplift in ADR and a 2.7pp. rise in occupancy. The growth was particularly notable in Bulgaria and Romania, both achieving double‑digit RevPAR gains. At the city level, Bucharest (12.0%), Warsaw (9.1%) and Prague (8.3%) posted the strongest RevPAR growth in 2025, while Prague and Budapest ranked as the highest‑performing markets in terms of nominal RevPAR.