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It remains an open question when investment activity in Hungary and the CEE region will pick up after a subdued period due to concerns over the cost of finance, and the uncertain economic and geo-political environment, says real estate editor Gary J. Morrell. Another worry is how long yield corrections will continue.
Ibis & Tribe Budapest Stadium opened its doors as one of Accor's fastest-growing hotel brands last week, according to a press release sent to the Budapest Business Journal.
Guest nights for Budapest are now returning toward pre-pandemic 2019 levels after COVID, followed by broad geopolitical, economic and financial issues, hit tourism hard, on top of concerns over demand and spending power, not to mention rising development, labor and operational costs.
Development in the various real estate markets in Hungary is impacted by concerns about demand and concluding the preleases that enable a project to go ahead, the availability and cost of financing, the increasingly protracted planning and permitting process, rising construction, maintenance and utility costs, and, finally, the opportunity of an exit strategy with a sale onto an investor at an appropriate time in the business cycle of an asset.
Construction has started on a new hotel at Ferenc Liszt International Airport, being developed by Wing in cooperation with the airport operator. The new Tribe hotel is being built next to the Ibis Styles Budapest Airport Hotel, also by Wing and opened in 2018.