Recent news highlighted that Romania is set to see the opening of 13 new five-star hotels by 2028, including leading brands such as Mondrian, Hyatt and Kempinski. According to Mordor Intelligence, the Romanian hospitality industry is constantly evolving, shaped by market trends, changing consumer preferences and the broader economic climate. Industry players are differentiating through service quality, location, amenities, pricing and unique selling propositions to attract and retain guests.
The sector comprises a mix of chains and independent hotels across upscale, luxury, mid-range, budget and economy categories. Bucharest boasts one of the most developed hotel markets in the country, with four and five-star hotels predominating. Major players in Romania’s hospitality industry include Ana Hotels, Grand Hotel Italia, Continental Hotels, JW Marriott Hotels and Hilton Worldwide.
The Romanian hotel industry continues to grow and is expected to experience a significant recovery in 2023. According to Colliers’ annual report published in March 2024, the hotel industry is experiencing a revival, especially in the luxury hotel sector. Tourist arrivals from Romania are expected to reach around 7 million in 2023, approaching a record high and exceeding the pre-pandemic average.
The proliferation of international hotel brands, especially luxury hotels, is transforming Romania’s hospitality industry. Brands offer developers more flexibility and incentives, making new projects more attractive. The support of international brands also makes it easier to obtain bank financing, further stimulating investment.
Notable Luxury Developments in Bucharest
The epicenter of Romania’s luxury hotel market, Bucharest is experiencing significant growth, with several high-profile projects set to redefine the city’s hospitality scene.
One United’s Ennismore/Mondrian Project: The luxury brand will build a 100-room hotel near the Romanian Athenaeum, aiming to cater to high-end travellers with sophisticated tastes.
The Crest Collection by Ascott: Located near Parliament House, this 170-room project promises luxury accommodation and world-class service, enhancing the luxury appeal of the capital city.
Novotel Living Aparthotel: In collaboration with Accor, the 150-room aparthotel is due for completion in 2025, combining luxury with the convenience of extended stays.
Corinthia Grand Hotel Boulevard: This 30-room luxury boutique hotel is nearing completion and will be the latest jewel in Bucharest’s hospitality crown.
Market Trends
4- and 5-star hotels in Bucharest were the most active segment in 2023. Average daily revenue (ADR) per room increased by 15%-20%, following a 57% surge in 2022. ADR in central Bucharest reached €126 per room per night and €82 in the northern region. Occupancy rates increased by around 10% in the summer, but on an annual basis remain slightly below pre-pandemic levels.
Future plans
Although there is only one significant new hotel, the 84-room Ibis Styles Airport north of Bucharest, due to open in 2023, the luxury hotel pipeline is robust. Over the next two years, more than 20 significant hotels totaling nearly 2,000 rooms are scheduled to open in Romania. These developments will increase Romania’s attractiveness as a luxury destination and ensure a vibrant future for the hotel industry.
Romania’s hotel industry continues to attract premium international brands and significant investments, and the country’s position on the global luxury tourism map is set to improve significantly.
What opens
Hotel Mondrian, Bucharest
Bucharest’s first Mondrian-branded luxury hotel will feature around 100 rooms and is set to open by 2026 near the Romanian Athenaeum. The project is a partnership between real estate developer One United Properties (ONE) and hospitality company Ennismore. The hotel will be built at 8-10 Avenue Georges Clemenceau. As reported by Ziarul Financiar, One United Properties will acquire the unfinished building in December 2022 for €13.5 million and will then relicense and complete it, transforming it into a luxury hotel, previously announced as One Plaza Athénée.
Hyatt – Aro Palace, Brasov
Aro Palace Brasov will be part of the famous Hyatt chain and will operate under the name Hyatt Regency Aro Palace Brasov. Founded in 1939, the Aro Palace hotel offers 189 rooms and suites, 67 executive rooms and suites, a luxurious spa, bar and event space.
Kempinski Poiana Brasov
In 2023, Kempinski Hotels announced plans for Kempinski Poiana Brasov Mountain Resort, a €70 million investment that will transform Poiana Brasov into a leading luxury travel destination. The resort will be Kempinski’s first in Romania and will feature 120 rooms, extensive spa and wellness facilities, three restaurants serving Romanian and international cuisine, as well as a conference center with mountain views to accommodate corporate events and weddings.
