Recent news underlined that by 2028, Romania was set to inaugurate 13 new five-star hotels, including prestigious brands such as Mondrian, Hyatt, and Kempinski. According to Mordor Intelligence, the Romanian hospitality industry is constantly evolving, being shaped by market trends, shifting consumer preferences, and the broader economic climate. To attract and retain guests, industry players differentiate themselves through service quality, location, amenities, pricing, and unique selling propositions.
The sector features a mix of chain and independent hotels spanning upscale and luxury, mid-scale, budget, and economy categories. Bucharest boasts one of the most developed hotel markets in the country, dominated by 4- and 5-star hotels. Key players on the Romanian hospitality scene include Ana Hotels, Grand Hotel Italia, Continental Hotels, JW Marriott Hotels, and Hilton Worldwide.
Romania’s hotel sector is on the rise, with a significant recovery noted in 2023. According to Colliers’ annual report released in March 2024, the hotel industry is experiencing a resurgence, especially in the luxury segment. The number of Romanian tourists reached nearly 7 million in 2023, nearing record highs and surpassing pre-pandemic averages.
A surge in international hotel brands, particularly in the luxury category, is transforming Romania’s hospitality landscape. Brands are offering greater flexibility and incentives to developers, enhancing the attractiveness of new projects. The support of international brands has also made bank financing more accessible, further stimulating investment.
Noteworthy luxury developments in Bucharest
Bucharest, the heart of Romania’s luxury hotel market, has seen substantial growth and several high-profile projects are set to redefine the city’s hospitality scene:
One United’s Ennismore/Mondrian Project: A luxury brand will bring 100 rooms near the Romanian Athenaeum, aiming to cater to high-end travellers with refined tastes.
The Crest Collection by Ascott: This 170-room project near the Palace of Parliament promises opulent accommodations and world-class services, enhancing the capital’s luxury offerings.
Novotel Living Aparthotel: In collaboration with Accor, a 150-room aparthotel is scheduled for completion in 2025, blending luxury with the convenience of extended stays.
Corinthia Grand Hotel Boulevard: This boutique luxury hotel, with 30 rooms, is nearing completion, adding another jewel to Bucharest’s hospitality crown.
Market dynamics
4- and 5-star hotels in Bucharest were the most active segment in 2023. The average daily revenue per available room (ADR) grew by 15%-20%, following a 57% surge in 2022. Central Bucharest saw ADRs reach EUR 126 per room per night, with northern areas hitting EUR 82. Occupancy rates during the summer increased by around 10%, though they remain slightly below pre-pandemic levels on an annual basis.
Future plans
Despite only one significant new hotel, the 84-room Ibis Styles Airport in northern Bucharest open in 2023, the pipeline for luxury hotels is robust. Over 20 significant openings totalling nearly 2,000 rooms are expected in Romania over the next two years. These developments are set to enhance Romania’s appeal as a luxury travel destination, promising a vibrant future for its hotel industry.
As Romania’s hotel sector continues to attract high-end international brands and significant investments, the country’s status on the global luxury tourism map is poised for a significant boost.
What’s opening
Hotel Mondrian, Bucharest
:quality(80)/business-review.eu/wp-content/uploads/2024/08/One-Athenee-_-Modrian-1024x655.webp)
:quality(80)/business-review.eu/wp-content/uploads/2024/08/One-Athenee-_-Modrian-1-1024x1024.webp)
The first Mondrian-branded luxury hotel in Bucharest, featuring approximately 100 rooms, is set to open by 2026 near the Romanian Athenaeum. This project is a partnership between real estate developer One United Properties (ONE) and hospitality company Ennismore. The hotel will be located at 8-10 George Clemenceau Street. As Ziarul Financiar reported, in December 2022, One United Properties acquired an unfinished building for EUR 13.5 million, with the intention of reauthorising and completing it, transforming it into a luxury hotel previously announced as One Plaza Athénée.
Hyatt – Aro Palace, Brasov
Aro Palace Brasov will become part of the renowned Hyatt chain, operating under the name Hyatt Regency Aro Palace Brasov. Founded in 1939, Aro Palace Hotel features 189 guest rooms and suites, 67 executive rooms and suites, a luxury spa, bars, and event spaces.
Kempinski Poiana Brasov
In 2023, Kempinski Hotels announced plans for the Kempinski Poiana Brasov mountain resort, set to transform Poiana Brasov into a prime destination for luxury travellers, following an investment of EUR 70 million. The resort will be Kempinski’s debut in Romania and will feature 120 guestrooms, extensive spa and wellness facilities, and three dining outlets showcasing Romanian and international cuisine. Additionally, a conference centre with mountain views will cater to corporate events and weddings.
