Opportunities for hotel development in Budapest: Insights from a qualitative study

Angéla Fekete, Szilvia Módosné Szalai, Dhruv Pratap Singh, Szonja Jenei, Nina Poyda-Nosyk, István Csendes

Article ID: 10712
Vol 9, Issue 1, 2025

VIEWS - 547 (Abstract)

Abstract


The Hungarian tourism and hospitality industry has faced serious challenges in recent years. The tourism and hospitality sector has been confronted with severe challenges in recent years. Even after the end of the pandemic, the industry has not seen the expected recovery, as rising inflation, declining discretionary income and a lack of foreign tourists have further hampered the industry. The hotel market in Budapest in particular has been significantly affected by these developments. Despite the difficulties, investors continue to see opportunities in the market. One example is the purchase by a group of real estate investors of an under-utilised leisure centre in District VII, which they intend to convert into a hotel. Our study is part of this project and its primary objective is to define the parameters of the future hotel and analyse the market opportunities and challenges. Our research focuses on the hotel market in Budapest and uses methods such as benchmarking, STEEP and SWOT analyses, as well as four in-depth interviews with key players in the market. The benchmarking examined the operations of hotels in the capital, while the in-depth interviews provided practical experience and insider perspectives. On the basis of the interviews and analyses, the study identifies possible directions for improvement and factors for competitive advantage.


Keywords


Budapest hotel market; hospitality industry; challenges; benchmarking analysis steep and swot frameworks; tourism in Budapest

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References


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DOI: https://doi.org/10.24294/jipd10712

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