The hotel sector continued to recover in 2023, with sustained growth in leisure tourism. The number of Romanian tourists staying in the country’s hotels reached almost 7 million in 2023, very close to record highs and above the average in the years before the pandemic, according to the annual report released by Colliers and quoted by The Diplomat.
Also, in the summer of 2023, air passenger traffic levels exceeded those of 2019, setting new records both in Bucharest and in other major cities across the country. However, the recovery of international tourism in Romania has not been as fast as that of domestic tourism, with the number of foreign tourists arriving in Romania remaining around 25 percent below pre-pandemic levels. Looking specifically at the nearly 2,000 rooms that could be delivered between 2024 and 2026, Colliers consultants point out that the market is gearing up for both quantitative and qualitative expansion.
“This significant revitalisation of leisure tourism is becoming increasingly attractive to a growing number of institutional investors. This stability in the face of recent challenges in the tourism sector is a key factor for attracting an increasing number of investors to various projects, despite the inflationary context generated by COVID-19. We are also seeing an increase in the number of projects entering the market, mainly announced for the period 2025-2026, as some investors have been cautious about new developments in other commercial property sectors, particularly office, and have sought to diversify their portfolios”, explains Raluca Buciuc, Director and Partner of Valuation360 and Advisory Services at Colliers.
Meanwhile, Colliers specialists observe a significant increase in the number and variety of hotel brands looking to enter the local market, from luxury to budget. Many of these operators are offering more flexibility and incentives to encourage developers to initiate projects, and when a building receives the support of an international brand, bank financing becomes more accessible. Also contributing to the growth of the market is the emergence of professional international or local operators who lease buildings from owners and manage them as hotels. This is relevant to the market as they act as intermediaries between developers and brands, reducing the risks for some investors.
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