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Spanish Sommelier Spreading the Word on Hungarian Wine

It’s a Friday afternoon in mid-June, and in the coolness of a Budapest cellar, a group of 15 German, British and American tourists are awaiting the start of an introductory tasting of five Hungarian wines.  15

Budapest Attracting Ever More

Hotel Brands

The hotel and leisure sector is becoming an increasingly popular development option. Budapest has a significant hospitality pipeline, with several international brands looking to enter the market, notably in the high-end and mid-range segments.  20

It started with the Dubai chocolate bar, filled with green pistachio cream, tahini paste made from sesame seeds, and pieces of crunchy knafeh), and originally called “Can’t Get Knafeh Of It.” Now it seems 2025 is ushering in the era of the pistachio.  29

A Passion for AI and Digitization

In his first interview with the BBJ since he became president of AmCham Hungary late last year, Ákos Janza discusses what has surprised him, why the chamber matters and his passionate belief in what AI and digitization can do for the country’s economy. 12

MNB: Base Rate on Hold, Downbeat on Growth

A pessimistic economic forecast was published by the National Bank of Hungary (MNB) as its Monetary Council, as expected, kept the base rate at 6.5%. This marks the ninth consecutive time that the central bank has left the base rate unchanged.  3

BUSINESS

Hungarian companies are currently concentrating on operational stability, while also planning investments and workforce expansion, according to Big Four consultancy EY’s latest survey.  7

EDITOR-IN-CHIEF: Robin Marshall

EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Éva Bodor, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz.

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THE EDITOR SAYS

IN PRAISE OF IMPROVED CONNECTIVITY

The weather is properly hot for the first time this year (which, my kids suggest, may not be entirely unconnected with me becoming properly grumpy). Even allowing for the fact that a level-three heat warning has been issued to encourage people to take it easy outside, the rising temperatures provide the ideal backdrop for our annual review of the tourism market. There are a bunch of fascinating interviews inside with various market players, from those involved in wine tourism to the new head of the Hungarian operations of Air France-KLM, but you will also find one of our famous Market Talk pieces.

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Why Support the BBJ?

• Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

• Community Building. Whether it is the Budapest Business Journal itself, the Expat CEO award, the Expat CEO gala, the Top Expat CEOs in Hungary publication, or the new Expat CEO Boardroom meeting, we are serious about doing our part to bind this community together.

• Value Creation. We have a nearly 30-year history of supporting the development of diversity and sustainability in Hungary’s economy. The fact that we have been a trusted business voice for so long, indeed we were the first English-language publication when we launched back on November 9, 1992, itself has value.

• Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities. Now, more than ever, factual business reporting is vital to good decision-making.

For more information visit budapestbusinessjournal.com

Knowing how busy five-star hotel general managers are, we took a slightly different approach this time, asking them not to go into too much detail and instead provide a quick overview: speed and spontaneity were the order of the day. Even so, there was a remarkable degree of unanimity on certain questions.

Asked what was missing from the Budapest mix, for example, almost everyone called for more direct flights, especially to and from the United States. This makes sense; in a world where the well-healed traveler has ever more choice, you need to make it as easy as possible for them to come here. If you have to make even one connecting flight, let alone two or more, why wouldn’t you choose somewhere you can get to in one hop, like Vienna, say, or Prague?

The other most commonly mentioned ask was for more luxury experiences, and particularly high-end retail. That is an echo of what the commercial real estate players were telling us in our stand-alone Top 50 Real Estate Executives publication, which is about to go on sale (forgive the blatant plug, but you’ll find it in our webshop). “Experiential” is rapidly becoming the watchword for the retail industry. It is no longer enough to “Build it, and they will come,” to misquote the 1989 movie “Field of Dreams.” One missing element I wasn’t surprised to see identified was a “contemporary convention center” to attract more from the Meetings, Incentives, Conferences and Exhibitions sector (inevitably known to hoteliers as MICE). I have been interviewing Budapest hotel GMs for more than 25 years, and they were bemoaning the lack of a proper facility way back then.

We deliberately asked our GMs to think beyond their own hotels in telling us the hospitality setting they most enjoy. Their answers to this question, as well as their recommendations for visiting VIP guests to get a genuine flavor of the country, reveal an understanding of, and a deep affection for, Budapest as a destination. There were also suggestions of trips beyond the city limits, such as a truffle-hunting expedition, or a visit to the wine regions or Lake Balaton. Then again, if a hotel boss doesn’t know where to go, who does?

Robin Marshall Editor-in-chief

THEN & NOW

In the 1967 black-and-white photo from the Fortepan Public Archive, people soak up the sun during a heatwave at the Gellért Thermal Baths in Budapest, capturing a moment of summer leisure in a bygone era. In the color image from state news agency MTI, taken on June 24, 2025, a misting gate offers relief from the scorching heat at St. Stephen’s Square in Budapest. The national chief medical officer has issued a level-three heat alert across the entire country, effective as of the time of going to print, until midnight on June 26.

Photo by Zoltán Kocsis / MTI

Photo by FŐMTERV / Fortepan

1News • macroscope

Central Bank Leaves Base Rate Unchanged, Releases Pessimistic 2025 Growth Forecast

A pessimistic economic forecast was published by the National Bank of Hungary (MNB) as its Monetary Council, as expected, kept the base rate at 6.5%. This marks the ninth consecutive time that the central bank has left the base rate unchanged.

Inflation in EU Member States (May 2024-May 2025) 12-month change in consumer price

Source:

The two ends of the interest rate corridor also remained unchanged at 5.5% and 7.5%, respectively. The decision did not come as a surprise and was in line with the broad consensus among analysts.

In a statement released after the meeting, the MNB indicated that the prolonged geopolitical conflicts and tariff announcements continue to cause an uncertain global economic environment. At the same time, the risk of recession has decreased due to the more favorable-than-expected first tariff agreements from the United States.

In the European Union, meanwhile, the announced spending increase programs may stimulate growth from next year. The most important message of the statement, the forward guidance contained in the last paragraph, remains unchanged from last month.

“The Monetary Council is committed to achieving the [2-4%] inflation target in a sustainable manner. The risks surrounding the inflation environment, as well as trade and geopolitical tensions, continue to require a cautious and patient monetary policy. In the council’s judgment, the maintenance of tight monetary conditions is justified,” it read.

The preliminary figures of the MNB’s latest Inflation Report (due to be published in full on Thursday, June 26, after this issue went to print) show that the central bank has significantly lowered its economic forecast for this

year. While the government still expects a 2.5% GDP growth rate for 2025, the MNB now says that expansion will be only

0.8%.

Three months earlier, the midpoint of the range forecast for this year (1.9-2.9%) was 2.4%, indicating how significantly the central bank has worsened its forecast downwards.

The new growth forecast is essentially in line with the current expectations of market analysts. The MNB remains confident that both internal and external factors will contribute to an economic recovery from next year. Thus, the Hungarian economy is expected to grow by 2.8% in 2026 and 3.2% in 2027, according to the key figures in the report.

Expectations Cut

Back in March, however, the MNB expected that the economy could grow between 3.7% and 4.7% in 2026. In other words, the central bank has significantly cut not only this year’s GDP growth expectations but also next year’s.

An annual average inflation of 4.7% is expected this year, while the Consumer Price Index forecast is that it will moderate to 3.7% in 2026 and 3% in 2027. According to the MNB, the inflation rate will vary above the tolerance band. Overall, MNB Governor Mihály Varga sees upward inflation risks and downward growth risks. Hungary’s May 2025 figure of 4.5% up from May 2024 was the third worst in the European Union.

In its analysis, the MNB drew attention to the volatile development of global investor sentiment, the sensitivity of international financial markets and the volatility of energy prices in the wake of the escalation of the conflict in the Middle East, according to Orsolya Nyeste, head analyst at Erste Bank.

In response to a question in the press conference following the rate decision, Varga had said that the central bank’s balance sheet contraction is in line with its strict monetary policy stance. In essence, he suggested that the expiring preferential credit programs are not planned to be offset with similar programs. In any case, the inclusion of foreign currency debt somewhat slows the contraction of the central bank’s balance sheet, according to Nyeste.

“As for the outlook, we believe that further easing inflation expectations, the undiminished risk perception towards Hungarian assets, and the start of Fed (or regional) interest rate cuts could create the conditions for central bank interest rate cuts. However, we will probably have to wait until at least the end of the autumn for this,” she stated.

Mind the Gap

MBH Bank analysts Márta BalogBéki and Ákos Sümegi noted the widening discrepancy in the growth expectations between the central bank and the government for this year.

“The central bank has announced lower expectations than the government’s and is also projecting

a lower growth trajectory than our forecasts,” they said. “The MNB expects an average inflation of 4.7% this year (0.2 percentage points higher than the government’s expectation), inflation may be 3.7% in 2026, and 3% in 2027. Pricelimiting measures have significantly reduced inflation in the short term, but strong price increases are still observed in companies,” they added.

The MBH Bank analysts still believe that the central bank will not be able to cut interest rates before the end of this year. However, they expect noticeable interest rate cuts in 2026,

expecting a base rate of 6.25% by the end of 2025 and 5.25% by the end of 2026. Although fundamental inflationary processes have eased further and the forint has also been relatively stable in the turbulent international financial market environment, the central bank still had no room to cut interest rates, Dániel Molnár of economic think-tank GFÜ argues.

“We expect this to happen at the September meeting at the earliest, but maybe only at the end of the year. The conditions for easing interest rates are that domestic inflationary pressures continue to ease, geopolitical conflicts (Russia-Ukraine, Israel-Iran, and trade tensions) also move towards lasting consolidation, and the Fed begins cutting interest rates, which currently limits the room for maneuver of monetary policy in emerging markets,” he said.

ZSÓFIA CZIFRA

Hungary and Slovakia Dig in Over EU Plans to

ban

Russian Fossil Fuels

Roundup Crisis

Hungary and Slovakia rejected the adoption of the European Union’s 18th package of sanctions against Russia, Minister of Foreign Affairs and Trade Péter Szijjártó said at a live press briefing streamed on his Facebook page following a meeting of the EU Foreign Affairs Council in Brussels on June 23.

require support from a reinforced majority of countries, meaning at least

15

According to Szijjártó, the two countries blocked the renewal of sanctions to protest the EU’s plans to completely phase out the purchase of discounted Russian natural gas and crude oil by 2028.

“We did this because the European Union [...] wants to prohibit member states, including Hungary and Slovakia, from purchasing cheap Russian natural gas and cheap Russian oil as they have done previously,” Szijjártó said.

While sanctions would be the most legally comprehensive way to ban energy imports from Russia, they require unanimous approval from EU member states, with renewal on a six-month basis. EU diplomats say Hungary has consistently used its veto in this process as leverage, and see this latest statement as a negotiating tactic.

However, the EU’s latest plan, proposed on June 17, is designed to circumvent objections from Hungary and Slovakia. Based in EU trade and energy law, it would only

of the EU’s 27 member countries, representing at least 65% of the bloc’s population, and a majority of the European Parliament.

The legally binding measures would be implemented in stages, starting with a ban on any new Russian gas and LNG import deals signed after this year, taking effect from Jan. 1, 2026. Then, from June 17, 2026, the EU would prohibit imports under short-term contracts signed before June 17, 2025. Finally, it would conclusively block imports under longterm agreements starting Jan. 1, 2028.

Once the plans had been announced, Szijjártó came out against them in a statement issued on June 20, following talks with Slovak counterpart Juraj Blanár. Criticizing the plan, which he said had been a proposal put forward by European Commission President Ursula von der Leyen and Ukrainian President Volodymyr Zelensky, Szijjártó argued it would significantly increase utility costs and undermine energy stability in the region.

Who Pays the Price?

“We are not willing to allow Hungarians to pay the price of the von der LeyenZelensky Plan,” Szijjártó said.

“We are not willing to allow Brussels to make Hungarian families pay the price of further support for Kyiv.”

“We had expected the EC to table a proposal that would reduce energy prices and the burden on consumers. But instead, we have been handed a REPowerEU package, which will not only pose a problem in terms of the security of regional energy supplies but will also result in higher energy prices.”

The foreign minister asserted that Hungary and Slovakia planned to formally protest the proposal at an upcoming EU foreign ministers’ meeting, which manifested as the countries’ rejection of the latest round of sanctions against Russia. Taking into account the expected rise in energy prices due to the escalating conflict in the Middle East between

Israel and Iran, Prime Minister Viktor Orbán urged the EU to take the proposed ban on Russian energy off the agenda.

“We must contend with a further increase in the price of energy,” Orbán said in a video posted on his Facebook page on June 22, after a meeting of his Defense Council, which discussed the possible security and economic implications of the Iran-Israel conflict.

“This is a serious threat. Therefore, we must remove in Brussels the regulations and bans on Russian energy,” Orbán said. “We have enough problems given the negative impact of the Iran-Israel war on energy prices.”

Additionally, Minister of EU Affairs János Bóka implored the European Commission to withdraw its REPowerEU energy package and instead conduct a comprehensive analysis of the effects of the Middle East crisis and EU sanctions linked to the war in Ukraine on energy prices, ahead of a meeting of his EU counterparts in Luxembourg on June 24.

“We had expected the EC to table a proposal that would reduce energy prices and the burden on consumers,” Bóka said. “But instead we have been handed a REPowerEU package, which will not only pose a problem in terms of the security of regional energy supplies but will also result in higher energy prices,” he concluded.

NICHOLAS PONGRATZ

Photo by KKM / MTI

In this picture released by the Ministry of Foreign Affairs and Trade (KKM), Minister of Foreign Affairs and Trade Péter Szijjártó gives a press conference at the EU Foreign Affairs Council meeting in Brussels on 23 June 2025.

Guiding a ‘Complex and Evolving’ Relationship

Romania’s Ambassador to Hungary, Gabriel Şopandă, is a wellknown face among Budapest’s diplomatic corps. As his term in office nears its conclusion, he sat down with the Budapest Business Journal to discuss his time here and the state of bilateral relations between the neighboring countries.

facilities. Other Romanian investments are found in logistics, auto parts (Autonet Group), car rental (Autonom), healthcare (Medlife), jewelry (Teilor), and industries such as hospitality, facility management, construction, furniture, and fast food.

BBJ: How do you rate bilateral relations between Romania and Hungary in terms of trade and politics? Gabriel Şopandă: The relations are both complex and continually evolving. Hungary is Romania’s third-largest trade partner by value, with 2022 marking a record high of EUR 15 billion. Although there was a slight decrease to EUR 13.3 bln in 2023, trade rebounded in 2024 with a 1.5% increase. Since Romania’s full integration into the Schengen Area in January, the first two months have seen a remarkable 15% increase in bilateral trade, reaching approximately EUR 2.2 bln in February. Among the various economic sectors, automotive trade accounts for approximately 22% of the total; however, activity is observed across all industries, in both exports and imports. Romania is also a key trade partner for Hungary, ranking as the second-largest export destination for Hungary. Over the past decade, the trade volume between the two countries has more than doubled. Within the business community, Romania is host to more than 15,000 Hungarian-owned companies, while approximately 7,000 Romanianowned businesses operate in Hungary. The majority of these fall within the SME and microenterprise segment, although both countries are home to large and well-established firms. In Romania, notable Hungarian companies include MOL, Gedeon Richter, Bonafarm Group, Indotek, Hell Energy, various banks, and major investors in agriculture, construction (for example, Kész Group), hospitality, and real estate. In Hungary, Romanian investments are led by eMAG, the country’s largest online retailer, which has invested more than EUR 300 million, as well as TeraPlast Group, the largest polymer producer in Central and Eastern Europe, operating three production

In collaboration with the embassy’s trade office, we have organized numerous industry-specific events and economic missions in both Romania and Hungary over the past few years, aimed at strengthening the ties between our business communities. Our efforts are paying off, as we now notice at least 4-5 new Romanian companies each month expressing interest in the Hungarian market, either for investment or export and 3-4 Hungarian companies considering Romania as a potential investment destination. We also encourage existing investors to expand and develop their businesses in both countries and motivate Hungarian companies to look beyond their established markets in western Romania, exploring opportunities in eastern and southern regions. For many Romanian companies, Hungary serves as a gateway to international markets, providing valuable experience.

The trade relations between Romania and Hungary are continuously evolving, with significant growth potential due to their proximity and shared business practices. I would describe it as a natural economic partnership, one of the most productive and seamless relationships you can have with a neighboring country.

BBJ: What are the most significant growth areas in imports and exports?

GS: Automotive industry-related exports and imports grow every year, but we also see an increase in Romanian exports of raw materials, such as aluminum. Meanwhile, a substantial portion of our imports consists of semifinished and finished products. The growth rate fluctuates both annually and, at times, even monthly. However, the automotive industry consistently ranks in the top two, followed by mineral products (such as oil, salts, and others) and chemicals (including

The year 2015 marked the first border connection at the highway level, and 2020 brought the second. Today, we have already agreed on two additional highway-level border connections. Significant progress has been made on both sides of the border in this area. Hungary has advanced with its highway construction closer to the border, and Romania has made similar strides. New cooperation has also emerged in rail infrastructure, both through constructing new lines and the upgrading of existing ones. Additionally, we have a bilateral Romanian-Hungarian working group on road infrastructure that meets at least three to four times a year, along with several technical subgroups that hold regular discussions. I believe that within the next three to four years, we will have a comprehensive road network connecting the two countries, benefiting both citizens and businesses by facilitating trade.

pharmaceuticals, drug components, and various other products). Additionally, the food industry remains among the top five for both exports and imports.

BBJ: Are there any new areas where you expect trade to expand?

GS: I am confident that all areas of trade hold growth potential. The development of our trade relations must be inclusive, meaning that any Romanian, Hungarian, or foreign businessperson with a legitimate interest in doing business should have the opportunity to contribute to the expansion of bilateral trade. In today’s technology-driven world, it is essential to leverage the latest opportunities to ensure that every citizen has access to the best services and goods available. The COVID-19 pandemic and the geopolitical situation have reshaped the way business is conducted. Companies are increasingly focusing on doing business closer to home, which presents a significant opportunity for us. With Bucharest just over one hour away by plane or around 10 hours by car from Budapest, Romanian entrepreneurs are well-positioned to achieve successful investments in Hungary. Supplying high-quality goods and services to the Hungarian market can significantly enhance overall trade.

BBJ: In 2022, you spoke at an Energynomics conference about the need for the two countries to cooperate better on energy. Are you happy with the progress since then?

GS: I would say yes, as there is ongoing cooperation at both governmental and private levels. We have a gas interconnector with a capacity of 2.6 billion cubic meters, which could be expanded soon. Electricity is both exported to and imported from Hungary, and professionals from both countries maintain a continuous dialogue to enhance existing partnerships and cooperation. In short, there is consistent progress. But when it comes to cooperation at the governmental level, I would like to emphasize the excellent partnership we have in road and rail infrastructure.

BBJ: Talking of energy, Hungary has long hoped to benefit from Romania’s Black Sea Neptun Deep gas reserves, an obvious alternative to Russian supplies. When might gas begin to flow, and will Romania supply Hungary?

GS: As Romania’s Minister of Energy Sebastian Burduja mentioned this March in Budapest, drilling has started, and we hope that within a few years, we will be able to export gas to Hungary as well. With the Neptune Deep gas project, Romania has the opportunity to become a net gas exporter, supplying gas not only to Hungary but also to other countries in the region. Earlier, we discussed new areas where exports can expand; this is an example of a promising new sector for export growth.

BBJ: I understand you are nearing the end of your term here. Have you enjoyed the posting? What have been the highlights and the challenges, and what is next for you?

GS: I truly enjoyed my time working in Budapest. Serving in a neighboring country, with both of us being NATO allies and EU member states, has been a privilege and a valuable opportunity for a career diplomat. Romania and Hungary share so much, as evidenced by the strong connections in fields such as business, art, and culture, among others. Of course, there were a few challenges, but most of them were positive and enriching. One of the highlights was the official visit of the then Romanian President Klaus Werner Iohannis to Budapest in October 2023, the first such in 14 years. During this visit, he reaffirmed Romania’s commitment to engaging constructively with Hungary, based on the core bilateral agreements that underpin our relationship, to benefit all our citizens, regardless of ethnicity. Since my current posting has already lasted nearly six months beyond the typical four-year diplomatic term, I concentrate all my efforts on finalizing as many of the projects I launched and worked on during this period as possible.

ROBIN MARSHALL

Gabriel Şopandă

Wing Opens 2nd Accor Brand Hotel at Budapest Airport

The Tribe hotel chain has expanded its presence in Hungary with the launch of the Tribe Budapest Airport, the brand’s second property in the country. The hotel is located adjacent to Budapest Liszt Ferenc International Airport and is directly connected to the earlier Ibis Styles Budapest Airport. Wing developed both.

With 167 rooms, Tribe Budapest Airport caters to business travelers and shortstay guests. It comprises a restaurant and lounge that can accommodate 140 guests, an outdoor terrace with a capacity for 60 guests, a rooftop skybar, a fitness center on the seventh floor, a 150-seat conference room, and two meeting spaces. It is set to become one of Hungary’s first BREEAM-certified hotels, blending style with sustainability, according to the hospitality brand.

“After a strong start in Budapest, weare excited to launch a second hotel in under two years, proving the brand is a game changer in the Hungarian and Eastern European markets,” said Pauline Oster, vice president of Tribe Europe andNorth Africa, at the opening.

The new hotel enhances the infrastructure at Ferenc Liszt International Airport, further strengthening Budapest’s role as a regional business and tourism hub. With this development, Wing joins an elite group of real estate developers that have delivered more than 1,000 hotel rooms in Hungary.

“Wing is dedicated to developing world-class, sustainable properties that enrich their environment and create long-term value for partners and communities through innovative, people-focused spaces,” said Wing’s chairman and CEO, Noah Steinberg, at the recent opening.

Milestone Building

“A key milestone in this vision is the completion of the Tribe Budapest Airport Hotel; it is both our second Tribe hotel and our second project at Budapest Ferenc Liszt International Airport. The new hotel offers high-

Real Estate Matters

A biweekly look at real estate issues in Hungary and the region

quality, convenient accommodation and meets a key need for additional capacity at Budapest Airport, reinforcing both Wing’s role in the hospitality sector and the airport’s importance in national tourism,” Steinberg added.

Tribe currently operates over 20 hotels and has more than 30 projects in development. “This opening marks a milestone that my team has been eagerly working toward for many months. Tribe Budapest Airport is not just another hotel; it’s a bold new concept designed for modern travelers who appreciate great design, premium comfort, and

authentic experiences: our rooftop skybar and restaurant are open to everyone,” said Csaba Palotai, general manager of Tribe Budapest Airport.

Both Tribe and Ibis Styles are subbrands of the French hospitality multinational Accor. In addition to the two airport hotels, Wing has previously cooperated with the group in the dualbranded Ibis and Tribe Budapest Stadium, part of the developer’s Liberty mixed-use project.

Wing will operate the new airport hotel under a management agreement with Accor. The architectural design of both

the Ibis Styles and the Tribe at Budapest Airport was based on original sketches by the late László Szerdahelyi, the lead architect of Aspectus Architect, who died in 2020. The firm is a subsidiary of Wing. The structural construction was carried out by Swietelsky Magyarország, with final construction and fit-out works managed by Bernecker, with the room interiors undertaken by Este’r Partners. Hungary is attracting rising numbers of visitors: Budapest Ferenc Liszt International Airport recorded its highest annual passenger traffic to date in 2024 at 17.6 million.

Wing Industrial, the industrial and logistics arm of the developer, has delivered B2, the fourth 9,000 sqm hall at the East Gate PRO Business Park in Fót (18 km northeast of central Budapest by road). The tenant of the BREEAM “Very Good” accredited facility is the Hungarian subsidiary of Packeta, a parcel logistics group active in CEE.

The letting was concluded on a built-to-suit basis, with construction undertaken by Weinberg 93 Építő and financing provided by UniCredit Bank. Wing Industrial says it worked closely with the tenant throughout the development to ensure that the building, which will serve as the base of the Packeta Group’s Hungarian operations, meets its requirements.

That tailoring includes largerthan-usual offices, more extensive handling facilities and parking areas,

as well as docking and drive-in gates for cross-docking and a heat pump system for heating and cooling.

“For us, it is key to have a warehouse and office base that not only serves our current operations to a high standard but also supports our growth in the long term. In collaboration with Wing Industrial, we created a logistics center that is entirely tailored to our needs. This flexibility and professional approach represent great values in the market,” said Zoltán Radeczky, acting managing director of Packeta Group’s Hungarian subsidiary.

East Gate PRO Business Park is located at the intersection of the M0 and M3 motorways. The project has the capacity for the development of six facilities with around 60,000 sqm of leasable space.

“A significant part of Wing Industrial’s portfolio consists of warehouse logistics and manufacturing/ assembly hall solutions tailored to fit the specific needs of our tenants,” comments Zsófia Korda, chief sales officer of Wing.

“From the earliest stages of design and construction, we give a special focus to ensuring that our facilities fully meet the requirements of our partners. Built-to-suit arrangements allow us to work closely with our tenants to implement tailored solutions that not only meet their current operational needs but also facilitate future growth,” she says.

“This development will not only enhance Wing Industrial’s portfolio but also contribute to the further improvement of the industrial and logistics infrastructure of the North Pest region,” Korda adds.

GARY J. MORRELL

Photo by Tamás Pál / Wing

Wing Industrial Delivers 9,000 sqm Hall at East Gate PRO Business Park

The adjoining Tribe and Ibis Styles hotels at Budapest Airport are opposite Terminal 2a and 2b.

2 Business

EY Survey: Hungarian Companies Focus on Stability but Prepare for Growth

Hungarian companies are currently concentrating on operational stability, while also planning investments and workforce expansion, according to EY’s latest survey. The Big Four consultancy’s research, which analyzed the Central, Eastern and Southern European and Central Asian (CESA) region, included responses from more than 230 Hungarian entrepreneurs.

BENCE GAÁL

According to the barometer, the most significant challenges cited were the complexity of the regulatory environment, labor shortages, and intense market competition.

EY surveyed more than 1,000 business owners across 16 countries, including Croatia, Hungary, Poland, Romania, Serbia, Slovakia, and Slovenia. The analysis covered professional areas such as investment sentiment, evaluation of the financing environment, challenges related to hiring, growth prospects, attitudes toward innovation, and the adaptation of artificial intelligence solutions.

“At EY, we’ve been actively supporting entrepreneurs for more than

20 years, including through the EY Entrepreneur of the Year program. Our goal with this survey is to show where Hungarian businesses stand in a regional comparison and highlight the areas where

targeted development programs or even external consulting support could lead to the greatest progress. This can provide tangible support for owners and a competitive advantage for the Hungarian economy,” emphasized Tamás Vékási, country managing partner at EY Hungary.

The current turbulent economic environment is prompting caution across the entire region, with Hungary being especially affected. The majority of Hungarian entrepreneurs indicated that market uncertainties may hinder their investment plans. Consequently, Hungarians make less use of loans or state subsidies compared to neighboring countries. Instead, they primarily rely on reinvesting their profits to finance operations.

For Hungarian respondents, the largest expenses are labor costs (65%), raw material and supply costs (32%), energy and utility fees (30%), and technological developments (22%), which aligns with international findings.

This caution is also reflected in growth plans. Across Central, Eastern, and Southern Europe, businesses are prioritizing developments that yield immediate results. Hungarian respondents intend to spend primarily on purchasing new machines or upgrading existing equipment, as well as updating and replacing their IT systems (54%) over the next 12 months.

Incentive Programs

State Secretary for the Development of Small- and Medium-Sized Enterprises, Technology, and the Defense Industry Richárd Szabados, of the Ministry for National Economy, stated at the press event that, as the survey shows, domestic SMEs are currently more cautious about starting investments, which is why the government has launched several incentive programs, including the Sándor Demján Program.

According to Szabados, its impact is already visible, with a continuous increase in demand for low-interest loans. So many development requests have come in for the non-refundable grants that the initial available funding had to be increased.

He said that the goal is for every business to find the supported financing option necessary for growth.

For Hungarian respondents, the most significant challenge is the regulatory environment. About one-third of entrepreneurs said it often hinders innovation, and the complex conditions can be difficult to navigate. The study also confirmed that simplifying regulatory conditions could provide more space for innovation efforts. However, it’s important to consider that several key regulations, such as GDPR (data protection), the recently introduced NIS2 (cybersecurity), and various sustainability measures (CBAM, the carbon border tax,

and EUDR, a deforestation regulation), are mandatory for EU member states. There is reason for optimism, as only a small fraction of Hungarian businesses are planning layoffs in the next 12 months. More are planning to hire additional fulltime employees (29%), although the majority do not plan to change the size of their workforce.

Serious Challenges

Whether companies can attract talent is already a pressing issue for many. Finding candidates with the necessary skills and experience and putting together competitive compensation packages are serious challenges for respondents.

Only a quarter of the Hungarian business owners surveyed have invested in AI, although they expect greater advancements in operational efficiency from the technology than the regional average. Most respondents reported using AI for personal development, data analysis, or creating marketing content, although the technology could be applied much more broadly.

Educating entrepreneurs, forming appropriate strategic partnerships, and introducing programs that promote the responsible use of artificial intelligence could significantly boost the efficiency of Hungarian companies.

“Geopolitical uncertainty, the emergence of new technologies, and a tight labor market present complex challenges for businesses,” said Csaba Horváth, partner at EY-Parthenon.

“However, the EY Entrepreneurial Barometer data clearly shows that, in addition to maintaining operational stability, Hungarian business owners also have the intent to grow. This requires solid foundations, regular analysis of operational risks and opportunities, and the ability to manage and exploit them,” he said.

“This can be done effectively through an independent audit involving reliable partners with appropriate expertise and experience. With this, owners can not only stabilize operations but also lay the groundwork for future, sustainable development. I am convinced that this can be a major competitive advantage. With our support, businesses can fully unlock their potential and continue to build a competitive future in Hungary,” Horváth added.

Succession planning is becoming an increasingly urgent issue for more Hungarian family businesses. Given their size and significance, how this process unfolds is critically important from a national economic perspective. Yet only a quarter of owners have a formal succession plan.

While this figure exceeds the regional average, structured planning still does not receive sufficient attention among the majority of respondents. For long-term financial stability, key development areas may include financial education for heirs and regular advisory reviews, currently practiced by only 9% of businesses.

From left, Tamás Vékási, country managing partner, EY Hungary; State Secretary for the Development of SMEs, Technology, and the Defense Industry Richárd Szabados; and Csaba Horváth, partner at EY-Parthenon.

Cushman & Wakefield Releases Dignified Access Report

Cushman & Wakefield has released “Dignified Access Hungary: The Road to an Inclusive Workplace.” Rather than presenting a technical report, the company says the publication is a transparent account of its journey to create equitable spaces through collaboration, education, and actionable change.

GARY J. MORRELL

Recognizing that disability is not an individual limitation but a societal challenge, the report underscores the importance of dignified access as a critical component of the social pillar of ESG standards.

Green Matters

A monthly look at environmental issues in Hungary and the region

The report addresses common misconceptions around disabilities, such as the belief that they are always visible or that accessibility compromises design, and offers counternarratives backed by data. For instance, 70-80% of disabilities are invisible, and the majority of accessibility improvements are cost-effective and visually integrated into modern design.

The publication shares key insights from Cushman & Wakefield’s partnership with Access4you, a leading social impact organization that audits, certifies and qualifies the accessibility of the built environment for diverse disability groups.

Key statistics further contextualize the urgency: globally, one in six people lives with a disability; in Europe, it is one in four. In Hungary, 22% of those aged 15 and above report some form of disability. These numbers highlight the growing need for barrier-free, inclusive design in both physical spaces and organizational culture, Cushman & Wakefield argues.

The audit assesses environments for 8+1 major disability groups and provides a roadmap for strategic development.

Key recommendations include: tactile and visual markers for the visually impaired; induction loops and sign language options for the hearingimpaired; clear wayfinding systems for individuals with cognitive disabilities; and entrance and interior adjustments for wheelchair accessibility.

Accessibility Audit

“An accessibility audit offers a datadriven starting point,” says Balázs Berecz, founder and CEO of Access4you, and wheelchair user since 2005. “Our social mission is to provide credible and detailed data for people with disabilities

RoseVille Achieves EU Taxonomy Accreditation

The class “A” RoseVille office complex has become Hungary’s first commercial property to receive EU taxonomy certification from an independent verifier, meeting the “climate change mitigation” requirements. As a consequence, the new owner of the 15,000 sqm office building, the RV Real Estate Investment Fund, managed by Hermes Investment Fund Management, was able to acquire a green loan to fund the property acquisition.

“Thanks to the close cooperation between the MNB [Hungarian National Bank] and our organization, a welldefined framework for applying EU taxonomy requirements has emerged. Based on this, the HuGBC [Hungarian Green Building Council] can provide independent verification for developers,

as in the case of RoseVille,” comments Gábor Szarvas, president of the council.

“RoseVille’s EU taxonomy certification was validated by the HuGBC. The MNB’s green programs, such as capital requirement relief for mortgage loans on green buildings, are a strong incentive for investors in the commercial real estate market. While some still perceive green certification as a complex and expensive process with uncertain outcomes, practices, however, show otherwise,” Szarvas adds.

EU and Hungarian regulations are becoming increasingly stringent, making compliance a significant challenge, especially for those aiming to exceed minimum standards. New regulatory frameworks, such as EU taxonomy regulations or upcoming zero-emission building requirements, help developers navigate sustainable real estate development.

BREEAM certifications increased by 54% in Hungary between 2023 and

2024. LEED and WELL certifications are also becoming more common, carrying not only prestige but also significant business value.

Sustainability Everywhere

“Environmental considerations are an integral part of Erste’s strategy and core operations. This means incorporating sustainability into all areas of activity to make the bank’s entire operation more sustainable,” says György Salamon, head of real estate financing at Erste Bank. Erste’s goal is for 25% of its corporate loan portfolio to make a significant contribution to the environmental objectives of the EU taxonomy by 2026.

“Progress is going well: by the end of 2024, these loans accounted for 20.7% of the corporate portfolio. One reason for this is that Erste now only finances real estate projects that significantly contribute to climate change mitigation,” he adds.

and encourage property owners to prioritize inclusion,” he added.

Cushman & Wakefield’s research shows that nearly 50% of Budapest’s office market is already Access4you certified, with the Váci út Corridor leading at 64%. Accessibility also correlates with building age; post2020 developments tend to be the most inclusive, showing that inclusive design is becoming an industry norm.

Cost concerns are also addressed in the research. Many accessibility improvements, such as tactile signage, step indicators, and induction loops, can be implemented at a relatively low cost, averaging around EUR 10,000 per access point, especially when considered in relation to the long-term social and economic benefits.

Cushman & Wakefield has joined Access4you’s Accredited Partner Program, enabling it to conduct accessibility audits. Through its project management department, it can support clients in creating more inclusive and accessible environments.

“The Accredited Partner Program is one of the strategic pillars of our operations. They are the evangelists for growing our social impact. They don’t just talk about it; they actively engage in sales and certification activities themselves,” says Berecz.

“Inclusion is not a destination, but a continuous journey. By investing in dignified access now, we are shaping a more resilient, equitable future for all,” concludes Gergely Pados, managing director of Cushman & Wakefield Hungary.

According to international benchmarks, green buildings have on average 2-10% higher investment costs; however, this green premium can pay off in as little as three to five years due to 25-50% lower energy and operational expenses. Further, sustainable buildings depreciate more slowly, providing more stable long-term returns according to Zsombor Barta, founding partner of Greenbors Consulting.

Investors, developers, and owners are increasingly being supported by designers, consultants, and now also financial partners, whether it’s about compliance, certification, or financing structures.

Experts agree that the real estate market of the future will gradually split in two: sustainable, future-proof properties, and so-called “stranded assets” that lose value. Greening existing portfolios will become inevitable, especially for institutional owners. Those real estate players who recognize and adapt to these trends in time will gain a competitive edge, while others may be pushed to the margins by shrinking demand, concludes Szarvas.

Orsolya Hegedűs, partner and head of research and consultancy at Cushman & Wakefield, presenting the report.

Fruit and Veg Bodies Call for 80% Hungarian Produce in Stores

Hungarian vegetable growers want a much higher share of local produce on store shelves; the proportion of domestic vegetables has failed to recover to pre-2019 levels, according to the regional farmers’ representative body Délalföldi Kertészek Szövetkezete (Délkertész).

Imported vegetables, often from thirdparty countries in North Africa, continue to exert significant pressure on the market, although Hungarian growers can meet shoppers’ needs during the domestic season and with a far smaller environmental footprint.

However, price sensitivity among consumers remains a significant issue, and Hungarian producers are often at a disadvantage due to the additional costs imposed by strict EU regulations. The net result has been that the share of imported vegetables in shops has steadily increased as consumers opt for lower prices, particularly since the energy crisis.

Délkertész represents 500 producers, family farms and entrepreneurs from the town of Szentes and its region, some

150 km southeast of Budapest by road. It is known as the home of peppers (Szentesi Paprika has been a protected geographical indication since 2014) but also produces tomatoes, cucumbers, and cabbage.

In a show of solidarity, Délkertész’ press conference earlier this month was attended by Ferenc Apáti, president and CEO of FruitVeB, the Hungarian Fruit and Vegetable Interprofessional Organization and Product Council. The two bodies argue that the share of Hungarian farm products should be significantly higher in stores than is currently the case.

“The goal during the season, from late April through to the end of October, would be around 80%, which would mean returning to the levels seen in 2019 and 2020. Right now, both in Hungary and Central and Eastern Europe, import pressure is extremely strong,” warns Sándor Nagypéter, president of Délkertész.

“It is difficult to compare vegetables when the rules are not the same. In the European Union, producers must comply with strict regulations on sustainability, working conditions, and quality assurance processes, while countries […] in North Africa operate under much less stringent requirements,” Nagypéter adds.

Hungarian products face additional competitive disadvantages: VAT on vegetables is 27%, whereas in neighboring countries, it is typically 5-10%.

Délkertész says 80% of supermarket

Under Pressure

“Even after the start of the domestic season in May, peppers from the North African region are widely available in shops. This puts Hungarian producers in a difficult situation. However, expecting an 80% or higher share for peppers and tomatoes throughout the full season is not unrealistic; this was already achieved around Pentecost in most supermarket chains,” he adds. Nagypéter accepts that Hungarian products must compete with imports but says CEE goods rarely start from the same position.

State Aid Available Even Without EU Funds

With the exception of some application procedures with limited budgets, Hungarian companies fundamentally do not have any options for relying on central resources to help pre-finance planned investment projects. However, that does not mean there are no serious opportunities for support available in the form of tax discounts and the system of unique government decisions. Gábor Matuss, partner at Andersen Adótanácsadó Zrt., discusses the options with the Budapest Business Journal.

BBJ: For a long time now, Hungary has had only limited access to EU funds. What forms of aid are available to companies for funding investment projects?

Gábor Matuss: There is indeed a limited range of opportunity in the area of applications, as there are very few state funding possibilities that can be used to pre-finance investment projects. However, in the near future, we can expect the launch of the Ányos Jedlik Energy Program, in the framework of which a total

of HUF 440 billion will be available in various application sections, primarily for the financing of energy, energy-efficiency, and energy-saving developments. The good news is that there are other possibilities, such as tax discounts, and the system based on unique government decisions (EKD) is still in place.

BBJ: What are these tax discounts?

GM: Tax discounts include development, energy-efficiency, and R&D tax incentives. These are competitive with direct state aid in terms of their amounts and their aid intensity; in some cases,

they even surpass them. There is no question that tax discounts are a post-financing form of support: their use assumes that the company will be able to turn a profit in the years following the investment or development project, which is the only way it will be able to generate the amount of tax to which the discount can be applied.

Délkertész claims its producers focus heavily on sustainability, replacing fossil energy with renewables and prioritizing biological crop protection. Szentes is a hub for innovative greenhouse production, meaning vegetables can be grown in a precisely regulated environment, often heated with thermal water. However, climate change is already being felt even in Szentes: Higher temperatures make ventilation, misting, shading, automated irrigation, and, in extreme heat, cooling increasingly necessary. All of this comes at a cost.

Délkertész recently built a nearly HUF 3 billion logistics center spanning more than 10,000 sqm featuring six cold storage units. This month, it launched an online webshop, and a sample store has opened in Szentes, reflecting growing demand for direct sales to consumers.

BBJ: The rules for energy-efficiency tax discounts were amended a little over a year ago. What is the essence of the change?

GM: Hungary introduced this tax discount to comply with EU requirements, and it was meant to play an important role in improving energy efficiency. However, partly due to the uncertainties surrounding eligible costs, it has not run its planned course. Just over a year ago, they introduced what can be called a very taxpayer-friendly change, which serves to reduce the uncertainty of legal interpretation as well as the administrative burden while allowing for even greater tax savings compared to previous cost settlement methods.

BBJ: The R&D tax discount has been around for decades. What trends does its use show among taxpayers?

GM: As activities that reduce the tax base or provide eligibility for a tax base discount, R&D discounts have indeed been part of Hungarian tax law for quite a while. The newest development is that, from 2024, in accordance with the introduction of the global minimum tax in Hungary, taxpayers can now receive a corporate tax discount for research and development costs in addition to reducing their tax base, meaning companies have been given more leeway in this respect as well.

Gábor Matuss

Photo by BearFotos / Shutterstock.com

fruit and veg produce in the domestic season should come from Hungary.

Hungary’s GDP, Inflation and Currency all Vulnerable to External Shocks, K&H Warns

Hungary faces another year of subdued economic growth before prospects might improve in 2026, according to the latest economic outlook from K&H Bank. While it expects the national economy to expand by just 0.5% this year, mirroring the sluggish pace of 2024, a rebound to 2.5-3% is penciled in for next year, assuming no major external shocks derail the recovery.

According to the bank’s latest forecast, the Hungarian economy is expected to expand by only 0.5%

in 2025, echoing the minimal progress made last year. A stronger rebound is anticipated in 2026, with GDP growth forecast to reach between 2.5% and 3%.

However, both growth and inflation forecasts remain subject to a wide range of risks, including international geopolitical tensions, uncertain global demand, and the persistence of government intervention in the domestic market. Inflation is expected to remain elevated, while wage growth is likely to slow as the labor market cools, and the forint may continue to experience ongoing volatility, influenced by both international and local policy shifts.

Speaking at a press conference in Budapest, K&H Bank’s chief analyst, Dávid Németh, stressed the difficulty of making precise predictions in the current economic climate.

“The outlook for both growth and inflation is highly uncertain, primarily due to persistent geopolitical tensions and unpredictable global events,” he said. The so-called ‘Trump effect’ in U.S. politics, ongoing trade disputes, the continuing armed conflict between Russia and Ukraine, as well as Israeli attacks on Iran are just some of the factors exerting significant influence on global and Hungarian economic performance.

These unpredictable developments, Németh noted, are making it particularly challenging for analysts and policymakers to chart a reliable path forward.

However, Németh cautioned that any acceleration will depend on stabilizing external and domestic conditions, and that risks remain on the downside if further international shocks occur.

Cautious on Inflation

When it comes to inflation, the prognosis is similarly cautious. K&H expects average annual inflation to stand at 4.3% in 2025, moderating to around 4% in 2026.

Németh explained that these projections could change depending on a variety of factors, particularly the duration and extent of government price controls.

“There are significant questions about how long the official price caps will remain in effect and whether new interventions will be introduced. Food prices are especially exposed to weather-related risks, and international prices for some agricultural commodities, such as cocoa, have increased dramatically,” the analyst said.

“On top of that, government measures like tax incentives or direct support for households could push up domestic demand and contribute to inflationary pressure,” Németh added. This means that the Consumer Price Index could remain stuck at the upper edge of the central bank’s target band of 2-4%.

Turning to wages, the environment remains challenging for employees and employers alike. High inflation expectations have a substantial impact on

pay negotiations and household budgets. This year, wage growth is expected to slow further after several years of stagnation and rising unemployment.

Németh pointed out that corporate investment has declined in recent years, resulting in weaker productivity growth and leaving little room for meaningful wage increases. Nevertheless, as the economy gradually recovers from stagnation, a tightening labor market could eventually spur a new round of pay rises, he added.

K&H forecasts average gross wage growth of 7.5-8% in 2025, with an acceleration to around 9% possible in 2026 as the economic recovery takes hold.

Forint Vulnerability

As for the forint, monetary policymakers at the National Bank of Hungary (MNB) are likely to remain cautious for the foreseeable future, given continued inflation risks and ongoing international tensions. According to Németh, a single interest rate cut may be on the table this year, with the possibility of two if external conditions take a significantly more favorable turn.

The forint has recently shown some resilience, buoyed by higher interest rate differentials that have attracted international investors to Hungarian assets.

“In stable market conditions, this rate gap could continue to support the forint, but as we have seen in recent months, external shocks, like Israeli military action in Iran, can still cause sudden bouts of forint weakness,” Németh explained. He warned that increased volatility is likely to persist, with the euro-forint exchange rate expected to fluctuate within a broad range, between 395 and 415.

Németh also highlighted the sensitive balance policymakers must strike between supporting growth and maintaining currency stability. Any missteps or new shocks could send the forint swinging sharply in either direction, making it difficult for businesses and consumers to plan. The MNB will likely err on the side of caution in its decisions, with stability as its guiding principle, he suggested.

“The outlook for both growth and inflation is highly uncertain, primarily due to persistent geopolitical tensions and unpredictable global events.”

Looking forward, K&H’s analysts emphasize that a mix of domestic and international forces will shape the fate of Hungary’s economy and its currency. In addition to the decisions made by major central banks and global trade developments, the country remains vulnerable to further geopolitical risks, commodity price fluctuations, and potential shifts in European Union policy. The coming year is poised to present challenges but may also open up opportunities for a return to more robust and sustainable growth, if external conditions permit. For now, both investors and households are advised to prepare for ongoing uncertainty and volatility in both the economic outlook and the forint’s performance, according to Németh.

GERGELY HERPAI

Photo by Gergely Herpai

Dávid Németh, chief analyst at K&H Bank (left), and Nóra Horváth Magyary Voljc, head of communications for the K&H Group.

Media and Marketing Sector 1st to Compile Comprehensive AI Guide

Citing “exemplary cooperation,” professional organizations from the Hungarian communication sector say they are the first to compile a comprehensive sector-wide Hungarian AI guide.

The document aims to provide a practical guide to all within the industry, creating a clear-cut framework for the transparent and ethical use of AI.

The Association of Communication Agencies in Hungary (MKUSz) worked alongside the Hungarian Publishers’ Association (MLE) and the Hungarian Marketing Association (MMSz), with support from the Hungarian Advertising Self-Regulatory Board (ÖRT), eight further professional organizations, the Big Four consultancy KPMG, law firm Baker McKenzie, and Microsoft.

Although the AI Act of the EU laid the regulatory foundations in 2024, answers to sector-related and ethical questions were left to the professional communities. The media

and marketing communication sector’s “AI Guide” focuses on six key areas: definitions and an AI dictionary; legal and regulatory questions; ethical dilemmas and suggestions for solutions; copyright questions; data safety protocols; and cooperation within the sector.

The handbook provides practical assistance through self-checklists and offers specific suggestions for everyday operations, supporting strategic decision-making.

The 1.0 version, completed in April, will be updated by the 12 publishing organizations as technical and legal modifications demand.

“For the Association of Communication Agencies in Hungary, it is especially important that the ethical, legal and market framework for the use of artificial intelligence be agreed on jointly and that it is transparent,” says Nikolett Blaskó, chairwoman of the MKUSz, which initiated the cooperation.

“We are proud that the Hungarian communication sector was the first to discover the necessity and responsibility of self-regulation with regard to the swift and only partly regulated spread of artificial intelligence. The handbook compiled is the result of a unique cooperation,” Blaskó adds. Others in the industry support this view.

Human Judgment

“According to the Reuters Digital News Report 2025, even though users are open to news recommended by AI, they still appreciate the judgment and credibility of human editors, which can only

Auto Rentals Face Fragmentation as Tourism Surges in Budapest

Gábor Dévai, co-owner of Green Motion Hungary, highlights the shifting dynamics of mobility, the growing impact of off-site and digital rental providers, and how changing travel patterns, from city breakers to Middle Eastern premium customers, are reshaping the car hire business in Hungary.

BBJ: How has the auto rental market evolved in Budapest over the past year, especially in light of the 10-15% increase in incoming passenger traffic?

Gábor Dévai: I’d divide this issue into two parts. The number of transactions by official airport rental providers is not growing in direct proportion to the rise in passenger numbers. This is partly due to the increasing number of off-site airport providers, who are capitalizing on the expanding online market and capturing a significant portion of the growth in demand. On the other hand, a large segment of the arriving passengers are city breakers who rely on alternative mobility solutions, such as ride-hailing, car sharing, or public transport, rather than renting a car.

BBJ: Which tourist markets currently represent the fastestgrowing customer base? What impact does the increase in Chinese, overseas, and Middle Eastern flights have on your business?

GD: The Israeli market was extremely strong, but unfortunately, due to the current political situation, demand is now trending downward. This customer segment continues to arrive in Hungary regularly, but the most significant influx comes in spring for the pilgrimage to the “wonder rabbi,” when 70,000 Jewish visitors arrive over just three days. The Middle Eastern and Chinese customer base continues to grow steadily. These customers typically rent larger, premium, automatic cars and tend to be less price-sensitive.

BBJ: Which periods of the year are the strongest? How challenging are seasonal fluctuations for resource planning?

GD: We handle resource surpluses with students; we employ a stable team of motivated young people who love cars, thrive in a fast-paced environment, and speak multiple languages. They’re part of our community and enjoy working with us. We even have a high school senior preparing for final exams who performs just as well as our full-time colleagues.

be provided by experienced journalists,” notes Tibor Kovács, president of the MLE.

“That’s why it is more important than ever for the media to use this new technology transparently and that (human) journalism, which is independent from algorithms, still has a key role, because that remains the pledge of authenticity,” he argues.

“We not only provide answers to the legal and data safety questions, but also provide guidance concerning when we can let ourselves trust an algorithm, and when we cannot. The question is not whether we use AI or not, but how we do so responsibly. This guide helps to shape the future responsibly, while preserving our credibility,” Kovács adds.

Ferenc Hinora, president of the Hungarian Marketing Association, says the spread of AI will bring about fundamental changes. “The MMSz considers it extremely important that its members, among them the biggest advertisers of the Hungarian market, get comprehensive and practical guidance regarding the current legal, ethical and operative questions concerning the use of artificial intelligence,” he says.

“We believe that the conscious application of artificial intelligence will not only contribute to the long-term success of brands and companies, but also the level of cooperation between clients and agencies will be elevated to a next level, resulting in a stronger partnership, better understanding and more efficient joint work,” Hinora concludes.

The Hungarian-language handbook is available for free download at http:// marcom-ai-guide.hu.

We see demand spikes around major tourism events: Easter, the Sziget Festival, Formula 1, the “wonder rabbi” holiday, New Year’s Eve, Christmas, and, of course, the summer high season, which typically runs from June 20 to August 20, when school is out and tourists start traveling to Hungary. During the summer, the average rental period is around five days.

BBJ: You say city break tourists generally don’t rent cars. Do you have any strategies to reach this group, or do you focus more on other segments?

GD: They usually don’t rent unless they’re leaving Budapest (for example, to visit Szentendre). Even then, it’s typically on an ad hoc basis, and they prefer downtown pickup locations. In this case, our virtual office setup and fixed downtown location are beneficial; tourists can conveniently pick up their vehicles.

BBJ: Supply is expanding faster than passenger numbers through new car-sharing options, onsite/off-site providers, and the appearance of new brands. How is this affecting competition?

GD: The market has changed significantly in recent years. The arrival of services like Uber already had a significant impact on mobility. Since the airport allowed car-sharing providers to enter the mix, the situation has become even more fragmented; the existing demand is now split among more players. The express shuttle service starting from Deák tér also draws away customers, particularly city breakers.

BBJ STAFF

Gábor Dévai

3 Country Focus

United

States

Fostering a Competitive, Stable, and Innovation-friendly Business Environment

Ákos Janza became president of AmCham Hungary late last year. In his first interview with the Budapest Business Journal , he discusses what has surprised him, why the chamber matters and his passionate belief in what AI and digitization can do for the country’s economy.

BBJ: What do you want to achieve in your time in office?

What are the priorities?

BBJ: It has been seven months since you were elected president of the chamber. Why did you decide to stand?

Ákos Janza: With more than 15 years in global leadership roles, I’ve seen how the business environment can make or break a company’s ability to succeed. Stability and predictability empower businesses to plan, grow, and innovate. In contrast, in an unpredictable environment, you spend more time firefighting than building. That’s why AmCham’s mission to foster a competitive, stable, and innovationfriendly business environment is so critical. I was first impressed with the chamber’s impact as a member, and later as first vice president, where I had the opportunity to contribute more directly to its work. These experiences gave me a clear view of how I could help shape its future. I ran for president to bring my international experience, strategic mindset, and collaborative approach to advancing AmCham’s agenda, particularly in advocacy, community building, and knowledge sharing.

BBJ: What has surprised you most since becoming president?

ÁJ: I’ve been part of the AmCham community for many years, so I came into the role with a good understanding of the chamber’s mission and dayto-day work. However, even with that background, I’ve been struck by the pace, scale, and intensity of engagement we have with key stakeholders. In the first half of the year alone, we organized major Business Forums with ministers from the economy, energy, interior, and culture and innovation portfolios, and held high-level consultations. And that’s just the headline layer. There’s a constant rhythm of policy events, committee meetings, and communitybuilding gatherings. The volume is impressive, but what really stands out is the trust placed in AmCham as a voice at the table, and the opportunity that gives us to shape meaningful changes.

ÁJ: AmCham has earned its place as a leading voice in business advocacy, and one of my top priorities is to build on that legacy, amplifying our influence and making sure our voice continues to shape the national agenda. As a strong advocate for digital transformation, I’m particularly focused on expanding our role in areas like AI and automation. These technologies aren’t just buzzwords; they’re reshaping how we work, live, and compete. Hungary is still in the early stages of its AI journey, but the number of companies using AI has already doubled in the past year. That momentum creates both urgency and opportunity.

To support our members, we’ve launched a Digitalization Working Group and hosted our first Digital Impact Day, giving members direct access to thought leaders and policymakers. We’re also expanding into new sectors like tourism, travel and entertainment, bringing key players from hospitality into the conversation to strengthen our sectoral engagement.

Finally, growing and diversifying our membership is a core priority. A broader base doesn’t just make us more inclusive; it makes us stronger, more representative, and more effective in our advocacy.

BBJ: You are president of the American chamber and have more than a decade of experience working with U.S. companies. What values do you believe Hungary could benefit from adopting?

ÁJ: What I’ve consistently seen in my work with U.S. companies is a relentless focus on results, paired with a culture of efficiency, accountability, and innovation. These organizations are driven by KPIs, guided by clear processes, and quick to adopt breakthrough solutions when they see value. Hungary has enormous talent and potential. By integrating more of these values, particularly the emphasis on execution, agility, and global best practices, Hungarian businesses could unlock greater performance and competitiveness. It’s not about copying

a model but selectively adopting what works to elevate our operational standards and strengthen Hungary’s position as an attractive, forward-looking business hub. There’s still a lot of work to do, but also a great deal we can learn.

BBJ: What are the most significant challenges facing businesses operating in Hungary today? How do you overcome these?

ÁJ: One of the most pressing challenges is navigating an environment marked by global volatility, uncertainty, complexity, and ambiguity. This is felt acutely in Hungary, where external shocks collide with domestic unpredictability. Internally, there’s work to be done to establish a more stable and simplified regulatory and tax environment. In such a landscape, predictability is not a luxury; it’s a strategic necessity for long-term investment and confident day-to-day operation.

A second, equally urgent challenge is talent. As technology reshapes entire industries, the development of a futureready workforce becomes critical. Hungary needs a modern, skills-focused education system and targeted upskilling programs to prepare people not only for today’s labor market, but for what comes next.

Healthcare is another key area. Hungary ranks among the highest in the OECD for avoidable mortality, which has a direct impact on workforce productivity and national competitiveness. Addressing this requires better coordination between public and private healthcare actors and a serious upgrade to our digital health infrastructure.

Digitalization remains a major driver of long-term growth. While government initiatives to improve digital skills and support data-driven planning are steps in the right direction, there’s still a significant gap in implementation. We also see enormous potential in the responsible adoption of AI to improve productivity and resilience across sectors.

On the international front, we welcome the deepening partnership between Hungary and the United States. However, the expiration of the U.S.-Hungary double taxation treaty in January 2024 remains a significant concern. Its absence creates additional financial and administrative burdens for companies, especially for our members with transatlantic operations. AmCham has consistently raised this issue with both Hungarian and U.S. stakeholders, advocating for a new agreement that restores predictability and facilitates investment. More recently, rising tariffs on EU goods have added further pressure, affecting bilateral trade and broader transatlantic ties. These developments underline the need for sustained dialogue, trust-building, and close economic cooperation.

At AmCham, we take a proactive role in responding to these challenges. We regularly publish strategic policy materials to guide our advocacy. Currently, we’re preparing our Policy Agenda 2026–2030, a forward-looking document that will identify the key levers for Hungary’s competitiveness and shape our engagement with policymakers over the next five years.

BBJ: What’s your favorite AmCham event and why?

ÁJ: It’s hard to choose just one: AmCham offers a rich mix of strategic and community-building events throughout the year. If I had to highlight a few, the Digital Impact Day stands out. It brought together key voices on AI and digitalization, two areas I’m deeply passionate about, and gave our members real insight into where the future is headed.

We’re now preparing for our flagship event, the XI Business Meets Government Summit, in partnership with the Hungarian Investment Promotion Agency. It’s a unique platform for high-level, solution-oriented dialogue on Hungary’s long-term competitiveness, and I’m excited to see how this year’s discussions will shape the policy agenda ahead.

On the community side, I’m especially looking forward to our Thanksgiving Charity Dinner. It’s more than just a social event; it’s a moment to celebrate one of the most meaningful American traditions, give back, and strengthen the bonds within our diverse membership.

And of course, our committee meetings remain the heartbeat of AmCham, where members shape positions, share knowledge, and turn ideas into action throughout the year.

ROBIN MARSHALL

Ákos Janza

‘Revenge Tax:’ Overriding Tax Treaties in the Draft OBBBA. What Next for the EU?

On May 18, the House of Representatives approved what has been dubbed the “One Big Beautiful Bill Act,” formally known as the OBBBA, which introduced so-called Section 899. This provision emerged from Republican opposition to the Organization for Economic Cooperation and Development’s two-pillar global tax model. Miklós Sánta, partner and leader of international tax and transaction services at EY Hungary, discusses the implications for Hungary, the EU, and the United States.

One such provision, the “undertaxed payment rule” or “UTPR,” enables jurisdictions to collect the taxes that are “missing” in other undertaxed jurisdictions where no top-up tax was introduced. This could hypothetically mean that Hungary could levy a tax on the undertaxed profits of U.S. multinationals, although America did not introduce global minimum tax rules.

One of the OECD’s pillars, the Global Minimum Tax, was implemented across the EU in 2024 with specific provisions effective from 2025. This new international tax was merely a corporate surtax. The uniquely complex rules applied exclusively to multinational groups with global revenues exceeding EUR 750 million annually. The aim was to ensure that the subsidiaries of these multinational corporations paid at least a 15% income tax on profits earned in various countries based on a unified calculation. Essentially, this created a shadow corporate tax system for the largest multinational companies in the jurisdictions implementing the rules. While these companies’ subsidiaries remained subject to local corporate tax rules, if the tax paid under those local rules did not meet the 15% threshold determined by the GMT’s alternative calculation, the undertaxed subsidiaries had to pay the difference as a top-up tax. If the country of the subsidiary did not collect this, other countries that had also adopted the global minimum tax rules could collect it through a complicated distribution mechanism, certain provisions of which came into effect only in 2025.

When Trump took office in January, the States formally left the OECD’s inclusive framework, signaling a departure from international cooperation on tax matters. Shortly thereafter, Trump issued an executive order that authorized the U.S. Treasury to take retaliatory actions against jurisdictions applying “discriminatory taxes” like UTPR. This set the stage for a more unilateral approach to international taxation, as the administration sought to protect U.S. interests and mitigate perceived disadvantages for American multinational enterprises.

For the House of Representatives and the Trump administration, the prevailing theory was that U.S. MNEs would face economic disadvantages, such as exposure to double taxation, under the OECD rules. As more countries adopted the OECD’s approach to jurisdictional taxing rights in an increasingly digital economy, the U.S. under President Trump stands out as a notable holdout against this trend, which aimed to deter a profit-shifting “race to the bottom.”

New Tax Rules

The proposed Section 899 of the OBBBA introduces new tax rules that could significantly impact foreign entities doing business in the United States. It builds on earlier legislation aimed at increasing taxes on foreign individuals and corporations,

entities from countries that are deemed to have unfair tax practices, potentially increasing costs for those doing business in the United States and overriding established tax treaty benefits.

As the legislative process continues, the Republican majority in the Senate is focused on passing the OBBBA, including Section 899, by July 4. Following the Senate’s approval, the bill will need to be reconciled with the House version, which may involve further negotiations and adjustments to address concerns from various stakeholders.

Treasury Negotiations

Once the final version of the bill is agreed upon, it will be sent to the President for approval. If enacted, the provisions of Section 899 would take effect on Jan. 1, 2027, allowing time for the U.S. Treasury to engage in potential negotiations with affected countries.

The proposed Section 899 has prompted significant concern among EU member states, particularly those that have implemented their own digital services taxes and other measures to address perceived inequities in the global tax system. While only a handful of EU states are applying DSTs (namely, Austria, France, Italy, and Spain), under the EU Directive implementing the global minimum tax, almost every relevant jurisdiction was obliged to introduce UTPR, including Hungary.

referred to as “applicable persons.” These include foreign governments, non-U.S. individuals and foreign corporations that are tax residents of countries with discriminatory tax practices. It also covers private foundations and non-publicly held corporations that are majority-owned by these applicable persons.

The term “discriminatory foreign country” refers to any nation that imposes what the States considers unfair taxes, such as digital services taxes and under-taxed payments rules.

The Senate has proposed some significant changes to the House bill. Notably, the implementation of Section 899 would be delayed until Jan. 1, 2027. The tax rate increases would be capped at 15% rather than 20% and would apply automatically to UTPRs but not to DSTs. Additionally, a new provision called “Super BEAT” would adjust the tax base and expand the types of payments subject to these rules.

Overall, this provision would lead to significant tax increases for companies and individuals in jurisdictions with UTPRs, DSTs, and other “unfair taxes.” However, the one-year delay allows more time for negotiations. It is possible that the U.S. administration would apply a similar strategy to that used regarding tariffs, with the ultimate goal not to use the “weapons” provided by Section 899 but to put pressure on trade partners, especially the EU, to make amendments.

Moreover, the proposed changes could override existing U.S. tax treaties, meaning that even if a foreign entity benefits from a lower tax rate under a treaty, the withholding tax could still rise significantly if the entity is from a “discriminatory foreign country.” In summary, the proposed Section 899 aims to impose higher taxes on foreign

The EU faces several options, ranging from bad to worse, in response to the U.S. legislation. One potential response is to do nothing, which could lead to serious disadvantages for EU businesses operating in the United States or trading with it. Alternatively, the EU could consider similar retaliatory actions against U.S. companies, for example, by not respecting double tax treaties concluded by member states with America. That could further escalate tensions and trigger a “treaty war” alongside the ongoing trade war. To avoid this, the EU could initiate negotiations with the U.S. Treasury to find a mutually agreeable solution that avoids adverse consequences for EU member states.

Any negotiations would likely require a reevaluation of the Base Erosion Profit Shifting Pillar 2 framework, which has already been implemented as an EU Directive through a unanimous decision in the European Council, with strong support from influential member states like France and Germany. Therefore, any changes to this framework would necessitate a complex and potentially contentious negotiation process.

The future of the global minimum tax became uncertain when the new U.S. administration took office back in January. There have been reports that a few jurisdictions, including Hungary, have already raised concerns about the GMT framework within the EU in the context of the new U.S. policies.

Other sources indicate that the current Polish Presidency of the European Council of the EU attempted to place the review of the GMT directive on the EcoFin agenda, but certain jurisdictions pushed back. However, if OBBBA and Section 899 pass, revisiting the global minimum tax deal in the EU seems inevitable.

BENCE GAÁL

Miklós Sánta, partner and leader of international tax and transaction services at EY Hungary.

Bristol Myers Squibb, U.S. Embassy Host Strategic Healthcare

American multinational biopharmaceutical firm

Bristol Myers Squibb (BMS) has hosted a highlevel professional forum in partnership with the U.S. Embassy in Hungary, titled “Innovating Together for Patients in Hungary.” Held at the Commercial Counselor’s Residence, the event brought together senior government officials, healthcare leaders, clinical experts, and diplomatic representatives for a strategic dialogue on innovation, access, and long-term collaboration.

350 patients. The company’s research activities span oncology, neuroscience, immunology, and cardiovascular fields, reflecting its diversified, innovationdriven pipeline and portfolio.

With a variety of guests, including representatives from the Ministry of the Interior, the Ministry for National Economy, the National Health Insurance Fund (NEAK), the Hungarian Investment Promotion Agency and leading clinical institutions, the forum focused on how shared efforts have advanced therapeutic access and public health outcomes in Hungary.

BMS says the event underscores its reinforced presence in Hungary, translating a three-decade legacy into accelerated and expanded clinical research activity, which has doubled since 2021.

USA

in Brief News

U.S. Tourists Among Most at Pentecost

The number of guests staying at tourism accommodation in Hungary reached 288,000 over the long Pentecost weekend, a 20% increase compared to the previous holiday weekend, according to a statement issued on June 11 by Visit Hungary, a unit of the Hungarian Tourism Agency. Guest nights rose 17% to 516,000. Foreign arrivals jumped 31% to 119,000, with nearly twothirds of international visitors spending time in Budapest. Most tourists came from the United Kingdom, Germany, the United States, Romania, and Israel.

Szijjártó Welcomes

U.S.-China Trade Deal, Criticizes EU’ Isolation’ Hungary welcomes the finalized trade agreement between the United States and China, Minister of Foreign Affairs and Trade Péter Szijjártó said on June 11, according to a ministry statement. In a post on his Facebook page, Szijjártó called the deal “good news” for Hungary, noting that both countries are among Hungary’s largest trading partners and investors outside the European Union. However, he said the development leaves Brussels

In his keynote address, Christophe Durand, BMS vice president for Switzerland, Austria and Central and Eastern Europe, emphasized the company’s long-term scientific and clinical investments in the region.

“Our commitment to Hungary extends beyond medicines; it includes investment in research, education, and collaboration with local institutions,” he said. “We are here to create long-term value for patients, the healthcare system, and the scientific community.”

The forum reflected BMS’s broader ambition to serve as a trusted, long-term partner to the Hungarian healthcare ecosystem, not only through its medicines but also through its contributions to

in a difficult position. “While the Americans and the Chinese have reached an agreement, the EU has isolated itself from the key players of the global economy,” he said. Szijjártó criticized the lack of a U.S.-EU tariff deal and pointed to EU tariffs on Chinese car imports and sanctions against Russia as factors eroding European competitiveness. He added that “Ursula von der Leyen’s European Commission has done more harm to the European economy than theintroduction of any tariff.”

U.S. Diplomat Praises Hungary’s Role in Values-based Dialogue

Democracy begins with attentiveness to others, United States Embassy Chargé d’Affaires Robert Palladino said on June 2 at the Századvég conference in Budapest, where findings from research conducted in 33 countries were presented as part of the Europe Project. Palladino noted that people desire borders, peace, stability, and the ability to live by their traditions while influencing their country’s direction, calling this “common sense.” He said such values are increasingly lacking in much of the West but praised Hungary for promoting these discussions. Palladino added that the United States seeks to build partnerships with nations that share its values in religion, family, tradition, and national pride, principles he said were “worth defending.”

shaping meaningful progress in research infrastructure, institutional cooperation, and patient access.

Fostering Partnership

“Fostering long-term partnerships between American companies and the local healthcare community is essential. Through strategic dialogue and shared expertise, we help lay the groundwork for impactful, sustainable innovation, and that begins with connecting the right people around the same table,” said Neil Pickett, Commercial Counselor of the U.S. Embassy in Budapest.

BMS currently has more than 50 ongoing clinical studies across 160 sites, involving more than

Opening remarks were delivered by Pickett and Massimiliano Magnelli, general manager of BMS Hungary. The program included contributions from U.S. Embassy officials, as well as Dr. Tamás Dávid, deputy director general for reimbursement at NEAK; Róbert Láng, Ministerial Commissioner for the Health Industry and Health Tourism at the Ministry for National Economy; and acknowledged medical experts: Prof. Magdolna Dank, director general of the National Oncology Institute; Prof. Béla Merkely, rector of Semmelweis University; Prof. Árpád Illés, head of Hematology at the University of Debrecen; and Prof. Norbert Miklós Wikonkál, director general of the North Pest Center Hospital – Honvédkórház.

Böröndi Highlights Importance of NATO Ties at 2025 Drill

Cooperation with NATO and allied forces is essential for the Hungarian Defense Forces in light of the “new security situation,” Chief of Staff Colonel General Gábor Böröndi said following an inspection of the Saber Guardian 2025 international military exercise near Veszprém (105 km west of Budapest) on June 16. Böröndi told a press conference that the exercise, which included American, Spanish, and Hungarian troops coordinating both ground and air operations, exemplifies strong NATO and broader international collaboration. Running from June 6 to 24, the exercise focused on fire support, halting enemy advances, and conducting counterattacks. It involves 800 Hungarian, 1,200 American, and roughly 600 Spanish soldiers. Böröndi noted that Hungary contributed high-level capabilities and advanced equipment to the

U.S. Hungary’s 2nd Largest Services Trade Partner

Hungary recorded a EUR 2.224 billion surplus in the trade of services in the first quarter, according to data released by the Central Statistical Office (KSH) on May 30. Service exports declined 3.6% year-on-year to EUR 7.838 bln, while imports dropped 2.6% to EUR 5.614 bln.

joint effort, including self-propelled artillery, chemical defense, antitank and air defense subunits, as well as helicopter and reconnaissance units. The exercise was led on Hungary’s side by the Hungarian Defense Forces Joint Forces Operational Command.

The tourism surplus totaled EUR 625 million, logistics EUR 650 mln, business services EUR 367 mln, and contract labor services EUR 491 mln. Trade with other European Union member states made up 64% of Hungary’s service exports and 73% of its service imports in Q1. Germany was Hungary’s largest services trade partner, accounting for 18% of turnover, followed by the United States with 8.4% and Austria with 8.2%.

Christophe Durand, BMS vice president for Switzerland, Austria and CEE, speaks at the U.S. Commercial Counselor’s Residence. (left). Commercial Counselor of the U.S. Embassy in Budapest, Neil Pickett.

General Gábor Böröndi, Chief of the Defence Staff, speaks to the press after the Saber Guardian 2025 international exercise at the Defence Forces’ zero point firing and training range near Hajmáskér on June 16, 2025.

Photo by Tamás

Vasvári / MTI.

4Special Report

Tourism

Spanish Sommelier Spreads the Word on Hungarian Wine to International Tourists

It’s a Friday afternoon in mid-June, and in the coolness of a Budapest cellar, a group of 15 German, British and American tourists are awaiting the start of an introductory tasting of five Hungarian wines.

KESTER EDDY

By their own admission, none have any knowledge of Hungarian viniculture or its products, but several declare they are keen to learn when Sam, their sommelier for the next hour or so, asks them to say a few words about their experience of the local market.

With the first two whites poured, all is set when, to the surprise of some, Sam turns out to be from Spain.

“I apologize in advance if I butcher the name of a Hungarian grape or two because it can get quite complicated!” he warned his audience by way of introduction before launching into a summary of Hungarian viticulture and viniculture history, along with more specific descriptions of the wines presented in the session: two dry whites, two dry reds and a Tokaj sweet szamorodni

It’s all part of a daily program at the Tasting Table in Budapest’s District VIII, enabling tourists restricted to the capital to grasp some basic insights into the world of Hungarian wines, and it’s very popular.

“Last year, we had more than 5,000 people on the 3 p.m. tasting and about

2,200

on the [more extensive] 6 p.m. tasting,” Gábor Bánfalvi, who established the Tasting Table with Carolyn, his American-born wife, in 2014, tells the Budapest Business Journal in an interview.

This year, after a more sluggish start than usual in the early months, demand surged in the spring.

“I think people, especially Americans, were holding off on travel; that’s my personal theory, but then it was one of the busiest Mays we’ve ever had, with more than 1,000 guests here [….] that month, up by 13% [on 2024],” says Bánfalvi.

Visitors from America (especially for the wine-tour arm of their business), Britain, Canada and Australia form the largest segment of the clientele base.

Knowledgeable About Wine

“Scandinavia is also very important for us. Danish, Swedish and Norwegian clients are really great, very knowledgeable about wine and even when they get drunk, they are»civilized,” he says, bursting into laughter. Dutch, German, French and some Spanish tourists make up the bulk of the remaining clientele.

Naturally, with the current conflicts in Ukraine and the Middle East, Russian and Israeli visitors have dropped off, except for some living in Hungary, while mainland Chinese have failed to return after the COVID crisis, something of an unexplained mystery to Bánfalvi.

“We do get people from Malaysia, Hong Kong. We even had some from Togo the other day,” he says, admitting with a chuckle he is unsure where the country is located.

Since 2014, the husband-andwife team has put much thought into producing a package of tastings that suits market needs. So, along with the regular

6

p.m.

“master class,” which comprises eight wines, they introduced a more exclusive “deluxe” tasting last year to meet the demands of the most discerning imbibers.

Priced at USD 99 (twice the 3 p.m. tasting fee), it offers eight top-shelf wines, coupled with an enhanced plate of cheese and charcuterie, and takes place in the Tasting Table’s more intimate back room, its walls festooned with a collection of wine labels illustrating Hungary’s viniculture history.

“There is no entry-level, aromatic stuff (which is fine and representative of Hungarian wine culture, or some of it), but here, it’s only the top stuff. It’s definitely for people who are into wine, they are more well-to-do, and they don’t want to take a chance of tasting anything mediocre by joining one of the larger tastings,” says Bánfalvi.

Initially unsure of its viability, the deluxe tasting proved an instant hit for this far smaller wine cognoscenti market.

“We sold around 150 tickets last year, and this year, it’s continuing to grow towards double that. The tasting is always limited to a handful of people, and in some ways, we wanted to go back

to how we started when we just had a couple of clients at each tasting. It was very sort of intimate,” he says, hinting at wistful memories of less hectic, if less lucrative, operational times.

Big Buyers

The deluxe tasting clientele, though relatively small and comprising predominantly Americans, Britons and Scandinavians, make up for this with their purchasing power.

“They are big buyers. They walk out with a good amount of wine. They don’t care if they have to check in extra luggage or buy a wine suitcase to fill up,” says Bánfalvi, who believes that after a decade of trial and error, the current offerings form “the perfect setup” for the tasting market. In practice, how did our 3 p.m. tasting turn out? According to overheard conversations and a rapid, non-scientific survey of four participants, satisfaction levels were high. Feedback on the two reds was absent, and Sebastian Pede, from Munich, Germany, thought the “lecture” could have been more interactive. He would have preferred longer breaks between wines and “didn’t really pay attention” to the history behind Hungarian wines. Nonetheless, he “enjoyed the atmosphere” and felt it “good to know” that Tokaji aszú is “such a unique wine.”

(In contrast, Clarissa Rienäcker, Pede’s tasting partner, put the “connection between the wine regions and the history of the country” first in her assessment of the tasting.)

Emily Robinson, from near Dudley, in the English West Midlands, named the Pannonhalma sauvignon blanc, the only international grape variety among the five wines on the menu, as her favorite in the session.

Asked for her thoughts about having a Spanish sommelier at a Hungarian wine tasting, she replied: “Honestly, it didn’t strike us as odd. We were just excited to try the wines and learn a bit more about Hungary and its wine culture. The presentation felt warm and engaging, and that was what really mattered to us.”

The tasting left Jenna Zabroski, a master’s student from Boston, Massachusetts, enthused about the whole experience. Like Rienäcker, Zabroski thought highly of the second white in the tasting, the Egri Csillag Superior cuvée, from Péter Gál.

“I had never tried Hungarian wine [before], but I’d say that – I don’t know how to pronounce it – the second was definitely my favorite,” she told the BBJ.

“Initially, when Sam said he was from Spain and […] he only came to Budapest two years again, I was quite surprised,” she said. “However, it turned out to be a very fascinating thing as he is extremely knowledgeable about not only wines but Hungarian wines specifically! Overall, I think this is a positive yet intriguing thing!”

Sommelier Samuel Fernandez Colomo, has been introducing tourists to Hungarian wines since April this year, having previously worked in wine in Spain and London.

Photo by Kester Eddy

Air France-KLM Hungary Head Touts Growth Potential, Premium

Experience, Decarbonization Strategy

Drawing on more than two decades of regional experience, Jan Kropacek, the newly appointed country manager of Air France-KLM in Hungary, sees rising passenger numbers and a growing appetite for premium travel options as key opportunities in a market that balances price sensitivity with high expectations. In this interview with the Budapest Business Journal, he outlines the company’s local priorities, upcoming global routes, and sustainability goals.

so if you find the right balance, you can be very successful. Additionally, we see that, just as in other Central and Eastern European countries, the price-to-value ratio is becoming increasingly important, even among tourists. This is reflected in the growing sales of premium products. However, as I mentioned earlier, there is still room for improvement.

BBJ: You’ve been with Air FranceKLM for more than two decades. How have your previous roles in Prague and the regional markets prepared you for leading the Hungarian office?

Jan Kropacek: I feel that all my previous roles are supporting my new position here. The Czech and Hungarian markets share similarities, as well as a few differences, but I am confident that I possess the capabilities, strength, and courage to achieve our goals.

BBJ: What makes the Hungarian market unique in terms of customer behavior or demand patterns?

JK: It’s fair to say that Hungary is a typical Central European market: somewhat price-sensitive, yet with potential for growth. We observe that passenger numbers are steadily rising,

BBJ: With the upgrade of the La Première first class and the introduction of Economy Comfort on Air France flights, how is the group aiming to differentiate itself in terms of in-flight experience?

JK: In aviation, First Class is becoming increasingly rare, with only a few airlines still offering this level of comfort. This scarcity is one of the factors that makes Air France stand out, and our brand-new La Première cabin takes luxury to another level. The suite is uniquely designed to span five windows and includes a chaise longue that transforms into a fully flat bed. This opulence is complemented by a menu crafted by Michelin-starred chefs, serving as a true ambassador of French gastronomy.

For KLM, our Business and Premium Comfort cabins are among the best in the industry, but what truly sets us apart is the exceptional quality of our onboard service. Our cabin crew consistently

receives outstanding feedback from customers, particularly for their friendliness and professionalism. We have now rolled out our premium cabins across all Boeing 777s and 787 Dreamliners. Meanwhile, intraEuropean travel has become more comfortable and eco-friendly, thanks to our Airbus A321neo fleet, which is gradually replacing aircraft that are more than 20 years old.

BBJ: New summer destinations include San Diego, Orlando, Hyderabad, and Manila. How relevant are these for Hungarian passengers?

JK: For Hungarian travelers, Orlando and San Diego are particularly attractive, as most of our transfer passengers fly to the United States. We aim to provide them with as many options as possible, not only by opening new routes but also by increasing flight frequencies. In this endeavor, we rely on our SkyTeam partner, Delta Air Lines, which offers seamless connections via Atlanta to virtually every major U.S. destination. In the Far East, both KLM and Air France are currently facing some competitive disadvantages due to the closure of Russian airspace and other geopolitical factors. However, the latest passenger traffic data shows that Asia is once again driving global expansion, so it’s crucial that our group

maintains a presence there. We ensure that passengers have a choice with our premium products, whether they are inbound or outbound travelers.

BBJ: How important is the joint venture with Delta Air Lines for your operations in Hungary?

JK: As mentioned earlier, the vast majority of Hungarian transfer passengers travel to the United States and Canada, depending on their travel class. This isn’t unique to Hungary; our entire airline group’s long-haul traffic is heavily focused on North America.

“It’s fair to say that Hungary is a typical Central European market: somewhat pricesensitive, yet with potential for growth. We observe that passenger numbers are steadily rising, so if you find the right balance, you can be very successful.”

One reason for this is that Air France and KLM operates the most flights to Canada from Europe, and our joint venture with Delta Air Lines allows passengers to book seamlessly across both airlines on a single platform. Delta’s two main hubs, New York-JFK and Atlanta, provide multiple daily flights to major U.S. cities; without this network, we wouldn’t be as successful.

BBJ: Sustainability is a significant focus for the group. How does this translate into your operations and communication strategy in Hungary?

JK: Sustainability is a collective responsibility, and Air France-KLM is committed to playing its role. The group has strong ambitions when it comes to reducing carbon emissions, advocating for an industry-wide transformation that ensures a level playing field globally. To monitor our progress, the group has set the following ambition: a 30% reduction in CO₂ emissions per passengerkilometer by 2030 compared to 2019.

Our trajectory aligns with the ambitions outlined in the Paris Agreement on climate change. To achieve this, based on the knowledge and context in 2022, the group developed an action plan structured around four key levers: Fleet Renewal, Sustainable Aviation Fuel Incorporation, Operational Measures, and Intermodality.

We’ve made optional SAF contributions available to both individual and corporate travelers. This is a key part of our communication strategy, especially toward business clients, as it helps companies reduce their Scope 3 emissions.

BENCE GAÁL

Jan Kropacek, Hungary country manager, Air France-KLM.

GM Market Talk: Connectivity is Key to Developing Budapest, Plus High-end Retail

We asked some of the leading hoteliers in Budapest to share with us what they are most looking forward to this year, what the market needs to develop, their favorite hospitality setting (beyond their own hotel) and what a VIP guest should not miss to get a genuine flavor of Hungary.

BBJ: What are you most looking forward to in the summer of 2025 and beyond?

William Boulton-Smith: Professionally, to see the team grow in confidence and to move the business forward; privately, getting out on my bike, playing a bit of golf and enjoying the local wines.

Serkan Hüsünbeyi: I’m truly excited to see the city once again filled with art, life, and international travelers. At Matild Palace, we are preparing for a remarkable season: weekly DJ performances and thematic rooftop events at The Duchess will bring fresh social energy to the city. We’ve also just launched a brand-new signature cocktail menu at The Duchess, which is already receiving fantastic feedback. For us, summer is when hospitality meets inspiration, and when the spirit of Budapest comes most vividly to life. Stephan Interthal: From a business perspective, I am optimistic that the summer months of July and August will be as successful in terms of tourism as the first half of the year has been, with solid increases in the number of international travelers arriving in our city. On a more personal note, I’m looking forward to enjoying some rounds of golf at Hungary’s excellent courses, perhaps at Botaniq in Mariavölgy, by Lake Balaton, or at Zala Springs.

and

Luxury Experiences

Angela Saliba: Professionally, what excites me most is the opportunity to deliver truly memorable experiences for our guests. We’re continually enhancing our signature spaces to exceed expectations; the DNB terrace, for instance, offer stunning views, a refined culinary selection, and impeccable service.

Andrea Schwindt-Kiss: We are excited about the continued growth of luxury travel to Budapest and the city’s rising recognition as a premier global destination. This summer, I’m especially looking forward to welcoming a more diverse mix of guests from seasoned leisure travelers to nextgeneration luxury explorers.

the GCC region. While air links to Asia are strong, markets like China offer untapped potential. Budapest’s charm is undeniable; it just needs to develop its infrastructure and services further.

Julia Selyukova: Summer in Hungary is always a season of energy and elegance. I’m especially excited about the vibrant lineup of concerts and cultural festivals, as well as the iconic Kékszalag (Blue Ribbon) sailing event on Lake Balaton; it’s such a unique celebration of sport and tradition. Looking ahead to autumn, I always look forward to the debut of the new repertoire at the Opera; it’s one of Budapest’s crown jewels.

BBJ: Budapest is emerging as a luxury tourism destination. The gastro scene has exploded in the past decade, the number of tourists arriving at the airport is breaking records, the F1 Grand Prix is a fixture, and MICE tourism is on the rise. What is missing from Budapest to take it to the next level?

Igor Buercher

The Liz & Chain Rooftop Bar is another standout, known for having the best view in the city.

On a personal level, I’m looking forward to enjoying a short break with my family. Summer breaks offer the opportunity to slow down and reconnect.

Igor Buercher: Budapest has made impressive progress, from its culinary boom to significant events and a growing MICE sector. Still, direct flights from the Americas remain a key gap, especially given the importance of the U.S. luxury market and the edge cities like Vienna or Prague enjoy. Strengthening luxury retail would also help attract highspending visitors, particularly from

WB-S: I would say that we need to improve the luxury shopping experience. SH: To compete globally, Budapest needs not only more direct international flights but also a stronger presence of luxury brands in the city. Publicprivate collaboration is essential here. At Matild Palace, we’re proactively contributing; our vacant boutique retail space is currently under discussion with major international brands.

ROBIN MARSHALL

Photo

William Boulton-Smith

Additionally, one of the world’s most iconic pâtisseries is expected to open a location inside the hotel by the end of the year. These kinds of investments will strengthen Budapest’s position on the global luxury map.

SI: I seriously believe the one major missing element is luxurious, high-end shopping. I don’t think that our beautiful Andrássy utca is internationally competitive. As a city, we must do everything to make shopping for international travelers more attractive, luxurious and desirable.

AS: One of the key priorities is improving international flight connectivity, particularly with direct routes between the United States and Hungary. Enhanced accessibility will be crucial in attracting longhaul travelers and expanding the city’s global reach. The development of a contemporary convention center would elevate Budapest’s appeal in the MICE sector and position the city as a serious contender for international business events.

Finally, to fully establish Budapest as a top-tier luxury destination, there is a clear need to expand high-end retail offerings and introduce curated luxury services that not only enhance the guest

experience but also attract higherspending visitors seeking bespoke and exclusive experiences.

AS-K: The F1 Hungarian Grand Prix attracts thousands of high-profile visitors, showcasing Budapest’s stunning backdrop and driving demand for luxury stays and exclusive experiences. Simultaneously, Budapest’s central location, rich heritage, and growing infrastructure make it a prime destination for international conferences and events. We are optimistic about the expansion of global air routes to Budapest, which will further cement the city’s role as a key hub in Central Europe.

JS: Budapest has grown into a truly exciting destination, but there’s room for more. A greater presence of high-end international retail brands would help elevate the shopping experience, and direct flights from major U.S. cities would make access easier for American travelers eager to explore Central Europe’s hidden gem.

BBJ: Apart from your own hotel, which is your favorite hospitality setting in Hungary and why?

IB: Budapest’s hospitality scene is thriving, and it’s great to see so many standout spots. For cocktails, Black Swan and Elysian never disappoint. On the Buda side, Déryné is a timeless favorite with a unique charm. For a taste of local culture, the Széchenyi Baths are iconic. And beyond the city, Hungary’s wineries and countryside estates are well worth exploring.

WB-S: There is a little local restaurant where I live called Elysee; the food is great, but, more importantly, so is the welcome.

SH: I love the understated elegance of boutique hotels around Lake Balaton. With their harmony of nature, design, and heartfelt service, they offer a poetic contrast to the pace of the city.

SI: The restaurant and hotel scene has improved nicely over the past 24 months, with the arrival of renowned international restaurateurs like Wolfgang Puck (Spago) and Dani Garcia (Aleli), adding value and culinary exposure to our city.

AS: I would have to say Lake Balaton. It’s a place where hospitality meets serenity; there’s something truly special about the atmosphere there. The “Hungarian Sea” offers a more laid-back, yet refined experience that blends relaxation, nature, and local culture in perfect harmony. It’s the kind of place where time slows down, and you can genuinely unwind.

JS: Tokaj remains one of my personal favorites. The region offers breathtaking natural beauty, rich winemaking heritage, and a sense of quiet sophistication that’s hard to match. It’s where hospitality meets harmony.

BBJ: If you have a VIP guest in for the weekend, what should they not miss to catch an authentic flavor of Budapest and Hungary?

IB: When hosting a VIP guest, we aim to blend cultural richness with modern luxury. A private water limousine ride on the Danube is a stunning way to take in the city’s iconic skyline. For lunch, Le Petit Beefbar offers a chic yet relaxed setting with elevated comfort food. An afternoon walk along Andrássy Avenue and through the Buda Castle District captures the city’s elegance. To help guests recharge, I recommend unwinding at Away Spa at W Budapest. For dinner, Salt Budapest offers a refined Michelin-star experience with local flair. The day ends perfectly with a nightcap at a rooftop bar, overlooking the sparkling city lights.

WB-S: Walk the river and the city, both sides, up to the Castle, the Jewish Quarter, and, if possible, get to Margaret Island; there is so much going on.

SH: A slow breakfast in a historic café, sunset drinks by the river, a signature dinner at Spago, and a final toast at The Duchess with music and cocktails.

SI: Apart from the many excellent restaurants and bars, especially in downtown Budapest, I always recommend that our guests explore all areas of the city within a 500meter walking distance and, for the evening, the Jewish Quarter behind the Synagogue. It offers a truly authentic flavor of the city, with many unique and individual restaurants operated by families over generations.

AS-K: We believe in providing thoughtful support throughout every stage of our guests’ stay, ensuring that each experience feels personal, seamless, and memorable. When it comes to discovering the true spirit of Budapest, my top recommendation includes four unmissable

elements: the Danube, stunning architecture, champagne, and a unique excursion. Picture a private Danube cruise at sunset with breathtaking views of the city skyline, a guided stroll through the Castle District, and an evening at Étoile Champagne Bar. For something truly special, guests can venture outside the city for a captivating truffle-hunting experience followed by a gourmet meal.

JS: A soak in one of our world-famous spas, a twilight river cruise along the Danube, and a relaxed stroll through the historic city center, especially at “golden hour,” offer the perfect blend of culture, relaxation, and romance.

Our GM Market Talk Panel, 2025

• Igor Buercher, W Budapest

• William Boulton-Smith , Dorothea Hotel, Budapest, Autograph Collection

• Serkan Hüsünbeyi , Matild Palace, a Luxury Collection Hotel, Budapest

• Stephan Interthal , Kempinski Hotel Corvinus Budapest

• Angela Saliba , Budapest Marriott Hotel

• Andrea Schwindt-Kiss , Párisi Udvar Hotel Budapest, the Unbound Collection by Hyatt

• Julia Selyukova , Four Seasons Gresham Palace Budapest

Continued from page 17 ›››

Serkan Hüsünbeyi

Stephan Interthal

Angela Saliba

Andrea Schwindt-Kiss

Julia Selyukova

‘Restoration King’ Rising to the Challenge, Optimistic for the Future

The Kempinski Hotel Corvinus Budapest has just completed a fiveyear, EUR 30 million renovation of its 350 rooms and suites. Future plans include a six-week renovation of the ÉS restaurant and kitchens. Occupancy rates are strong, with annual increases in profits; 2025 was set fair. But geopolitical tensions are bringing significant new challenges, as general manager Stephan Interthal tells the Budapest Business Journal.

Interthal strikes everyone who meets him as a meticulous planner. He says of himself that, though he is not a micromanager, he is into detail. “I look into the details very much, but I don’t deal with the details. If I see something, I delegate and follow up.” That’s exactly where he finds himself today.

“Since last Friday night [June 14, Israel’s preemptive strikes on Iran], the world has changed for us. We have been badly hit by cancellations from Israel, our second biggest market after the United States,” the GM says. Currently, no flights are departing from Israel. Hungarian carrier Wizz Air has suspended all its flights to and from Tel Aviv and Amman until Sep. 15. While acknowledging the challenge, Interthal is not downbeat, and Israel-Iran forms only a small part of our conversation. The GM will be 68 in October; in his 46 years in hospitality, he has seen many threats come and go, from 9/11 to COVID-19.

“I still believe that we will reach budget at year-end, or close to it; I trust that we can be better than last year, but now we have to see what the impact is going to be and for how long. […] We have had crises, we will have crises, but this industry will never die. People will always go somewhere to drink, eat and sleep.”

Interthal has become known as a “renovation king,” often finding himself in properties that require a significant overhaul. A EUR 30 million project in Budapest has just come to a close.

“We have concluded a five-to-sixyear-long renovation program, and now all 350 rooms and suites of the hotel have been renovated. They were completely stripped back and then rebuilt, including plumbing, electricity, and air conditioning,” he says.

Work was undertaken in Q1 (the relative off-season) on a rolling basis each year, with additional suites added to match growing market demand. As a result, the overall number of rooms has decreased slightly to 350, but the number of suites has risen from 37 to 43. At the same time, the spa, the business center, and the public washrooms were also overhauled.

Kitchen Renovations

“We are now planning a very big F&B renovation next year. Once we receive approval from the ownership, we will begin renovating our three kitchens. We want to start with the first-floor banquet

hardly next door, shares the same ownership. He is also responsible for project development in Central and Eastern Europe, where Kempinski is exploring opportunities in Romania and Slovenia. “I’m looking after current hotels, but I’m also hunting for opportunities,” he says.

The longevity of Interthal’s career with the European hospitality brand is such that he is the only remaining team member from a group of GMs who conceived the idea of the Lady (and sometimes the Gentleman) in Red in a Bedouin-tented camp in Jordan in 2009. The concept, now celebrating its 15th anniversary, aimed to give guest relations a recognizable face and brand.

“Our inspiration was a combination of the iconic Singapore Airlines stewardesses and the white bellboy of the Peninsula Hotel Group, that would be a signature at every one of our 80 Kempinski Hotels worldwide, a very visible lady in a red dress (or a man with a blue blazer, red tie and handkerchief); an anchor point for any kind of question, with the position freed up of other duties to be at the service to the customer. We never expected, when we created this concept, that it would be so long-lasting, so successful, and have such an impact on our company. I’m very proud, to tell the truth, that I was part of this ‘gang’ of seven GMs who invented this.”

Challenge and Opportunity

The number of luxury hotel brands coming to Budapest is a potential challenge, Interthal accepts, but also an opportunity.

or finishing kitchen this year, and next year, we’re going to have a bigger project of about six weeks, which will include the ÉS Bisztró restaurant and kitchen.”

He says the plans are ready to go and waiting on approval from the owners.

“ÉS is going to stay as a HungarianViennese culinary concept, but the owners, the Kempinski and my team strongly feel that, after 13 years, the restaurant needs an uplift. We have to give it a new face, a new perception, a fresh new look and feel.”

He admits overhauling a restaurant in six weeks is “ambitious,” but is also confident he has the right teams in place to achieve it. As we said earlier, this isn’t his first time at the restoration rodeo. He is also aware that, to use his phrase, he is in a privileged position regarding the hotel’s owners.

“We have the privilege of making good money, and the owners allow us to spend some of that on the property. They believe in the market, they believe in the destination, and they believe in us.”

Interthal is an area general manager. That means he also oversees a hotel in Estepona, Spain, which, while

“Don’t forget, we have been here the last 32 years. We were the first international hotel brand. And we were on the market 10 years before the next international hotel operator, at the time the Westend Hilton, came in 2001. We have seen other hotels open, but I must say, we have been able to defend our position successfully,” Interthal comments.

“If you take the W, for example, I consider this hotel an added value to the market. And I also consider it an added value that we’re going to have a Mandarin Oriental Hotel at the Gellert [….], which will be a one-of-a-kind hotel that this city has not yet seen, I am 100% sure,” he says.

“If you had told me 10 or 15 years ago that brands like W or St. Regis or Mandarin Oriental would come to this market, I would have said it was not likely because we are not Paris, or Rome, or London. But now, these brands are interested in the market, and I am positive, there will be more to follow,” the GM says.

“This is a big compliment for the destination; it means that we have an effective environment. And, yes, it is competitive; that is not a threat to me, but a challenge. We are ready to accept the challenge. But I also see the opportunities, and I think that, for Budapest, for this market, things will only get better.”

ROBIN MARSHALL

Stephan Interthal

Budapest Attracting Ever More International Hotel Brands

The hotel and leisure sector has become an increasingly popular development option, as Budapest, and indeed Hungary, attract rising numbers of tourists. Budapest Ferenc Liszt International Airport broke its passenger traffic record last year, handling 17.6 million people. On the back of this, Budapest has a significant hospitality pipeline, with several international brands looking to enter the market, notably in the high-end and midrange segments.

“In 2024, passenger traffic at Ferenc Liszt International Airport surpassed pre-pandemic levels, driven by re-nationalization and renewed strategic route development,” comments Attila Radvánszki, director of the hospitality consultants, Horwath HTL Hungary.

“Forecasts project 2.2% annual passenger growth through to 2035, reinforcing long-term momentum. On the ground, hotel supply is scaling up, with a 16% increase in room count expected by 2030 (roughly 3,700 rooms) led by the expansion of international brands,” he notes.

“It only confirms Budapest is actively shedding its ‘cheap(er) destination’ image as the city’s tourism strategy

has matured through collective efforts of hoteliers, city authorities, and a tourism board,” Radvánszki says.

The consultancy says occupancy reached 67.9% in 2024. While that is still below pre-pandemic levels, it was sufficient to push RevPAR (revenue per available room, a combination of room and occupancy rates) to EUR 73, exceeding the 2019 performance.

“This performance shows a shift toward value-based pricing, driven primarily by the need to offset rising operational costs. The momentum has continued into 2025, with first quarter data showing a 23.3% yearover-year increase in RevPAR, supported by further ADR (average revenue per occupied room) gains and moderate improvements in occupancy,” says Horwath HTL.

Between 2026 and 2028, CBRE anticipates the addition of 11 hotels in Budapest, which will comprise 1,880 rooms. A further 11 hotels, with a total of 1,828 rooms, are currently in the planning phase. If all these projects are realized, the Budapest hotel market will expand by 3,700 rooms by 2028.

Between this year and 2027, more than 60% of Budapest’s new hotel supply will come from the Upper Upscale (653 rooms) and Upscale (466 rooms) categories, signaling a clear shift toward higherend offerings. This aligns with the growing presence of international hotel companies and brands, according to Horwath HTL.

Upper Upscale

The Upper Upscale Radisson Collection Hotel Basilica Budapest is scheduled to open with 71 rooms this year. The Upscale Mamaison Vibe Hotel Budapest Downtown is set to deliver 96 rooms in the fourth quarter of the year.

Photo by Tamas Bujnovszky

“The provision of fine restaurants and dining is great, but retail is still lacking. I am sure this will evolve, but it is just taking longer than we thought.”

Heritage Redevelopment

Both Budapest and Prague have UNESCO-protected historical centers, and a notable trend in each of the capitals has been for the purchase and redevelopment of heritage-listed buildings in prominent locations into hotels, giving the structures a new usevalue while also preserving the classic feel of the area.

“The best-performing hotels are in these interesting, historic buildings. The redevelopment of historic buildings offers a unique branding opportunity and capitalizes on Budapest’s rich cultural heritage, appealing to all levels of tourism demand,” argues Takács.

“We think that demand is strongly back; developments have started, and there are also investor inquiries coming into the hotel market,” comments Péter Takács, a hotel and leisure specialist and partner at Newmark VLK Hungary.

“Altogether, there are around 1,600 rooms either under construction or at the planning stage in Budapest. I think that international brands are very eager to plant their flags in Budapest. Therefore, it is not difficult to find a good brand for your hotel if you have a good project,” he says.

“But there is a scarcity of available land or property for potential projects within the center of Pest. We think that there is certainly space for more development and supply in the three and four-star segment,” Takács adds.

At the luxury end of the market, the St. Regus Hotel Budapest, a Marriott International brand, is due to deliver a 12,000 sqm hotel with 102 rooms and suites, a spa and restaurants in a redevelopment of the historic Klotild Palace, a UNESCO World Heritage site, in the first half of 2026. The Qatari Ali Bin Ali group owns the building, which was previously the site of the Buddha-Bar Hotel Budapest.

In the Upper Upscale segment, BDPST-owned Equilor Asset Management has acquired the Budapest Sofitel hotel overlooking the Danube and is redeveloping and refurbishing the building. It will be relaunched as Accor’s luxury lifestyle brand, SO/, featuring 350 rooms, 56 suites, four food and beverage outlets, a rooftop restaurant, and a spa, fitness, and wellness area. It is currently slated to open next year.

“Budapest needs to offer more luxury experiences to attract more luxury travelers. This is particularly the case with regard to retail with the need for more brands and boutiques,” says Takács.

“However, such projects often face regulatory hurdles and higher renovation costs due to preservation requirements; usually, there is a constraint on the number of buildable rooms. A new building is just more efficient; on the other hand, empty plots and buildings that can be demolished in good locations are hard to find,” he points out.

“That is why there is an obligation to convert or renovate; therefore, we will see more conversions. Undoubtedly, there is a lack of development sites in Budapest city center, with very few remaining. Given that tourism primarily occurs in the city center, the only viable option for the future will be to convert older, historical buildings,” Takács adds.

In a heritage redevelopment of a former office building, the U.K.based Forestay Group, in a strategic partnership with Recorde Asset Management, has purchased Váci utca 81 for redevelopment into the 283-key Moxy Budapest Downtown Upper-Midscale hotel and apartment hotel, scheduled to open in the second half of 2026.

The developer is targeting BREEAM “Excellent” accreditation, which will be the first such high sustainability accreditation in Hungary’s hotel sector, according to Forestay Group.

“This property offers a unique opportunity to integrate cuttingedge technological concepts into a historically significant location,” comments Bálint Botos, managing director of the developer.

At the mid-scale end of the market, the relatively new Accor brand Jo&Joe (established in 2016) is due to deliver a 78-economy room hotel in Budapest, in a property it owns at Klauzál utca 3 in Pest’s District VII. The brand aims to redefine its sector “by combining the fun of a hostel and the comfort of a hotel.”

The Holiday Inn Express Vágóhíd by IHG, meanwhile, is being developed by Wing and is scheduled to deliver 162 rooms in District IX in 2027.

GARY J. MORRELL

W Budapest Hotel won the FIABCI Gold Heritage, Restoration and Conservation Prize in June 2025.

Empowering Hospitality Professionals in a People-centric Culture

The Budapest Business Journal sat down with Serkan Hüsünbeyi, general manager of the Matild Palace, a Luxury Collection Hotel, Budapest, to discuss the changes he has made to its organizational culture, market trends, and hopes for the future.

BBJ: Since you assumed your role in the fall of 2024, you’ve been working to create a more transparent, open, and collaborative organizational culture. Can you share some examples?

Serkan Hüsünbeyi: One of my top priorities has been to establish a people-centric culture, one that is transparent, empowering, and aligned with the values of the new generation of hospitality professionals. We redesigned our internal communication structure to include weekly crossdepartmental leadership meetings and daily operational briefings, where team members at all levels actively participate. Additionally, we launched the “Coffee with the GM” initiative, offering one-on-one conversations with colleagues from all departments. Listening to the insights of our young and dynamic team has opened the door to innovative solutions and deeper engagement.

BBJ: The TakeCare program has been instrumental in supporting employee well-being and career development. How, and what impact has this had on staff turnover?

SH: The program has become a cornerstone of our employee engagement strategy. Our team is predominantly composed of new-generation talents, creative, value-driven individuals eager to grow. That’s why we prioritize not only performance but also well-being and a sense of purpose.

We introduced flexible shift models and transformed staff areas into welcoming, wellness-oriented spaces. In addition to recognition initiatives such as “Associate of the Month,” we celebrate our team’s cultural diversity through themed celebration days. To support career growth, we launched mentorship programs and crossdepartmental rotation modules.

As a result of these initiatives, we’ve seen not only a significant drop in turnover but also a marked increase in internal promotions, something we’re especially proud of.

BBJ: There’s a saying in hospitality: “Happy staff, happy guests.” Beyond that, what steps are you taking to enhance the guest experience?

Are you seeing tangible results?

SH: We firmly believe that exceptional guest experiences begin with empowered and engaged teams. But we also back this philosophy with strategic systems. We’ve adopted a “first-contact resolution” approach to guest feedback, empowering our team to respond quickly and personally. On the technology side, CRM integration has allowed us to personalize stays, whether it’s a preferred pillow or a special celebration.

The results are clear: our guest satisfaction score has reached an impressive 95%. More importantly, we’ve seen a meaningful rise in direct bookings and repeat guests, which are powerful indicators of loyalty and trust.

BBJ: What are the percentage shares of guests by country? Which group is the largest, and which market is growing fastest? Given the Turkish heritage of the Özyer Group, do you host a high number of Turkish guests?

SH: Our guest portfolio, much like Matild Palace itself, reflects a rich international mosaic. The largest share continues to come from the United States and Western Europe, particularly the United Kingdom, Germany, France, and Italy. While Turkish guests are not currently our largest group, they represent an important and steadily growing segment, supported by the cultural connection to the Özyer Group.

The Duchess rooftop bar. With its panoramic views of the city, it blends Budapest’s imperial heritage with contemporary elegance. It’s where guests enjoy signature cocktails while truly absorbing the city’s vibrant energy. For me, The Duchess perfectly embodies the spirit of Matild Palace: elevated, distinctive, and full of stories.

BBJ: Are there any plans to bring back the Belvárosi Kávéház? If not, what are your intentions for that space?

SH: We are currently in the final stages of negotiations with a globally recognized luxury brand for the iconic space formerly home to Belvárosi Kávéház. The new concept will pay homage to Budapest’s historic café culture while introducing a contemporary luxury experience. It marks the beginning of an exciting new chapter for both the hotel and the city. We look forward to sharing more very soon.

BBJ: Spago Budapest by Wolfgang Puck is a rare privilege for a hotel. How involved is Wolfgang Puck in operations, and how would you like to see this partnership evolve?

SH: Spago Budapest is not just a restaurant for us; it is a defining part of the Matild Palace identity. We’re proud to host the first Central European outpost of Wolfgang Puck’s iconic culinary brand. Chef Puck is closely involved with the property, visiting several times a year, collaborating with the local team, and actively participating in signature events.

We’re also seeing exciting momentum from China. In alignment with Marriott’s “China Ready” program, we’ve localized our website in Chinese, established a presence on major Chinese social media platforms, and tailored services to meet the specific expectations of Chinese travelers. We’ve made it a priority to ensure that our Chinese guests feel genuinely welcomed and at home throughout their stay.

BBJ: What is your relationship like with the Hungarian Tourism Agency and Visit Hungary? What more would you like to see done to promote tourism further?

SH: We enjoy a strong and collaborative relationship with both the Hungarian Tourism Agency and Visit Hungary. Their support has been instrumental in promoting Budapest’s cultural and culinary richness as a luxury destination on the global stage. To further elevate the city’s profile, particularly in the long-haul and highspending segments, we would welcome more international campaigns and increased destination visibility. Expanding direct flight routes, especially from key markets like the United States, would make Budapest even more accessible. Enhancing the city’s luxury retail infrastructure by attracting globally renowned brands would also reinforce Budapest’s status as a rising luxury hub. Public-private sector alignment will be key to unlocking this potential.

BBJ: As someone who knows the hotel inside out, what is your favorite spot and why?

SH: While every corner of the property tells a story, my favorite place is

For example, on June 28, we will celebrate Matild Palace’s fourth anniversary, and Chef Puck will join us for the occasion, along with his son Byron and their international culinary team. The exclusive menu they’ve created speaks to the strength of this partnership.

Our ambition is to deepen this collaboration further, positioning Spago at the heart of Budapest’s fine dining scene and continuing to deliver unforgettable experiences to our guests.

BBJ: The Klotild Palace opposite Matild is to reopen as the St. Regis Hotel Budapest. Although it is owned by a Qatari group, both St. Regis and The Luxury Collection are Marriott brands. Do you see this as competition or a collaboration opportunity?

SH: The reopening of the Klotild Palace as St. Regis Budapest is a highly positive development for the city’s luxury tourism sector. While our properties speak two different brand philosophies and guest profiles, we share a mutual commitment to excellence under the Marriott International umbrella.

We see this not as competition but as an opportunity to elevate Budapest’s standing on the global stage collectively. There is great potential for joint destination marketing, knowledge exchange, and shared standards of service. While no official opening date has been announced, we are closely following the developments and look forward to the positive impact this will bring to the destination.

ROBIN MARSHALL

Serkan Hüsünbeyi, general manager of the Matild Palace, a Luxury Collection Hotel, Budapest.

BDPST Buys Budapest Marriott Hotel Building

The Danube-side Budapest Marriott Hotel has changed hands after CPI Europe sold the hotel-owning company in an open, international tender to the professional consortium of BDPST Group and Diorit Private Equity Fund, managed by Gránit Asset Management, itself part of BDPST.

The new investors say they aim to raise the service standards of the hotel and exploit synergies with other units of the group. As part of the transaction, Duna Szálloda Zrt., the company that owns the Budapest Marriott Hotel, will be jointly acquired by BDPST Corso Béta Kft., founded by BDPST Group, and Liberty Beta Corso Kft., a project company of the Diorit Private Equity Fund managed by Gránit Asset Management. The transaction is subject to customary closing conditions, including regulatory approvals. Assuming the change of ownership is approved, the hotel will continue to be operated by Marriott International after the change of ownership.

“The BDPST Group is constantly considering investment opportunities both at home and in the region. Our company was approached regarding the sale of the Budapest Marriott Hotel, and since it fits into our strategy for the Budapest hotel market, we ultimately decided to make an offer,” said István Tiborcz, owner of the BDPST Group.

“This is one of the best-equipped hotels in the city. We see serious potential in its operation, which also provides opportunities for group-level synergies with our other downtown sites. As a professional and financial investor, we will work to ensure that the Budapest Marriott Hotel operates successfully in the long term,” he said.

Tiborcz added that the future success of the hotel will have a positive impact on the entire downtown area, both economically and in terms of tourism.

A Promising Project

Álmos Mikesy, president and CEO of Gránit Asset Management (formerly known as Diófa), representing the buyer, was equally pleased with the deal.

“For Gránit Asset Management, the primary consideration for the funds it manages is always to invest in a promising project that creates longterm business value for investors.

Tisza Castle Mixes Accommodation, Dining, and Cultural Experiences

Tisza Kastély in Geszt, some 245 km south east from Budapest, close to the border with Romania, was extensively renovated by National Heritage Protection and Development (NÖF) Nonprofit Kft. and reopened to the public on June 5, 2024. Zsanett Oláh, managing director of NÖF Nonprofit, tells the Budapest Business Journal about its reception and what awaits visitors.

not only from Hungary but also from beyond the country’s borders. It is not just a historical monument, but a complex tourist destination that includes a heritage garden, guesthouse, sports fields, and one of the highest-quality interactive exhibitions in the country. It is the first heritage site in Hungary to offer accommodation, dining, and cultural experiences all in one place.

BBJ: What has been the public response since you opened Tisza Castle to the public?

Zsanett Oláh: Since its opening on June 4, 2024, the Tisza Castle in Geszt has quickly become a beloved destination, almost a place of pilgrimage. The site attracts numerous visitors

BBJ: Tell us more about the guesthouse. ZsO: Within the grounds of the castle, the Arany János Guesthouse is a modern, minimalist-style accommodation that blends contemporary architectural solutions with its historical setting. The two-story structure is directly connected to the main building of the castle via a glass corridor,

providing guests with easy access to the castle’s garden and park. The guesthouse features 20 twin rooms on the ground floor, as well as eight triple rooms and one five-bed apartment on the upper floor.

The guesthouse is an ideal venue for families, corporate team-building events, business meetings, student groups, and groups of friends seeking to relax and create memories together in the picturesque castle setting.

An à la carte restaurant connected to the building serves not only guests and tourists but also locals and workers from the surrounding area, offering a daily menu. A specialty of the house is the “Tisza Slice,” a modern reinterpretation of an ancient family dessert recipe. The café in the castle building is also open to all visitors.

This was also the case with this transaction: the Budapest Marriott Hotel has been an emblematic hotel of the capital’s tourism for decades. The property is in a top location in Budapest and has stable income-generating capacity, while thanks to its unique features, it also has great potential,” he emphasized.

The hotel opened its doors as Hotel Duna InterContinental on New Year’s Eve 1969, based on the plans of the renowned Hungarian architect József Finta, who died last year, and László Kovácsy.

Other hotels in the capital belonging to the BDPST portfolio include the 216-room Dorothea Hotel, Autograph Collection, at Dorottya utca 2, the 48-room five-star boutique Verno House, Vignette Collection at Octóber 6 utca, and the 137-room D8 three-star superior at Dorottya utca 8, all in Pest’s District V. Close to the Marriott, the former Sofitel Budapest Chain Bridge, at Széchenyi István tér 2, is being renovated and will reopen as the Accor luxury brand SO/ Budapest, with 350 rooms, in 2026. Across the river in Buda, the iconic Gellért Hotel is also undergoing a comprehensive renovation and is expected to reopen in 2027 as the first Mandarin Orientaloperated hotel in Hungary.

BBJ: How is the restored castle connecting with the local tourism scene?

ZsO: Tisza Castle has already become a popular destination domestically. One of our main goals was to establish partnerships with experienced tourism centers. For example, we are working with the Gyula Castle Spa [42 km to the southwest by road], enabling our guests to enjoy the spa’s services at discounted rates during their stay in Geszt. Furthermore, thanks to its location near the border, Geszt serves as an excellent stopover for travelers heading to explore Transylvania.

BBJ: What programs can visitors expect in Geszt this summer?

ZsO: Throughout the summer, the castle and its surroundings will host a variety of programs for visitors. Cultural events, open-air concerts, themed days, and family-friendly activities will be part of the offer, ensuring that people of all ages can find something appealing. On July 12, an exclusive wine dinner will await culinary enthusiasts at the Arany János Guesthouse, where the finest summer flavors and carefully selected Hungarian wines will come together in an elegant, seasonal menu. The gastronomic experience includes four courses, each paired with a different wine. On July 26, a summer spritzer terrace will open on the castle café’s terrace, featuring refreshing drinks, artisanal snacks, and live jazz music. This free, familyfriendly event provides the perfect setting for a summer evening, where the exquisite atmosphere of the castle, combined with fine flavors and music, promises an unforgettable experience. We are also planning to organize the Geszt Picnic at the end of August.

The Budapest Marriott Hotel

‘Hidden Gem’ of Budapest Emerging as one of Europe’s Leading Luxury Destinations

Budapest-born luxury hotelier Attila AE Domby shares his delight at the reception the Kimpton BEM has received from travelers, his plans for this year and beyond, and his pride in making the property part of the story of this fabled city.

and sincere connections with our team, we offer something truly distinct. From rooftop yoga to a glass of bubbly before check-in, we deliver luxury with soul, true Kimpton style. And yes, your fourlegged companion is welcome to stay free of charge, provided they fit in our lift.

BBJ: The hotel opened in July 2024. Are you happy with the results to date? Have you found your level in the market?

Attila AE Domby: We are truly delighted with the reception Kimpton BEM Budapest has enjoyed. Opening a new luxury hotel in a city with such a rich hospitality heritage is both an honor and a responsibility. Thanks to the dedication of my exceptional team and the strength of the Kimpton and InterContinental Hotels & Resorts brands, we swiftly established a strong presence. Recognized internationally as one of the most anticipated hotel openings of 2025, and achieving the Number One position on TripAdvisor within six months, we have demonstrated high guest satisfaction and successful positioning as Buda’s preferred luxury destination.

BBJ: What are the targets for the remainder of 2025 and your strategy for 2026 and beyond?

AD: Our focus for 2025 is to consolidate our position as the market leader in luxury hospitality in Budapest and deepen guest loyalty. Commercially, our aim is to outperform our comp-set while ensuring sustainable growth across a well-balanced mix of leisure and highend corporate segments. Looking ahead to 2026, we are strengthening our presence in key and emerging feeder markets, advancing our ESG priorities, and elevating the guest journey through Kimpton’s highly personalized service. Our ambition is not only to sustain our leadership in modern luxury hospitality, but to establish Kimpton BEM as one of Central Europe’s most talked-about hotel openings. Among the 11 Kimpton properties in Europe, and even when compared to those in the United States, Kimpton BEM stands out as the most beautiful and luxurious. This distinction is the result of strong ownership and a successful partnership with IHG.

BBJ: Budapest is going through a remarkable period of attracting new luxury hospitality brands. Why do you think this is happening now? Will it continue? Is this growth a challenge or an opportunity? Does this mean Budapest is now a truly luxury market destination?

AD: Budapest has long been a hidden gem. It was only a matter of time before the world’s most prestigious hotel brands turned their attention to it. The city offers a rich blend of culture, history, architecture, gastronomy, and safety, all within a wellconnected European capital. As global travelers increasingly seek authentic and meaningful experiences, Budapest is emerging as a natural choice. The arrival of new luxury brands is not leading to saturation but instead fostering innovation and elevating standards across the market. The caliber of openings in 2024 and those confirmed for the coming years highlight the city’s transformation. I believe Budapest is now firmly positioned as one of Europe’s leading luxury destinations.

BBJ: Hungary had a long-standing hospitality tradition. In the early 20th century, it was part of the broader European Grand Tour. All that was lost with war and communism, but it is making a comeback. How easy is it to find suitable staff today? How do you ensure it survives into the future?

AD: Hungary’s hospitality legacy runs deep. The older generation continues to serve with heart, while a new wave of

passionate and talented professionals emerges. Attracting and retaining top talent remains one of the industry’s greatest challenges, especially in the luxury segment. But this is precisely what makes my role so rewarding.

At Kimpton BEM, our scale enables a curated approach to team building. I have the privilege of handpicking each member individually. During interviews, my heads of department and I often exchange a knowing phrase: “She or he’s one of us,” meaning they share the mindset and values that define our service philosophy. At IHG, we are committed to developing talent through global exposure and meaningful career paths. Our goal is to build careers, not fill roles. By nurturing a people-first culture, for which IHG is known, we proudly support the renaissance of Hungarian hospitality. Great leaders create leaders. So we make sure to hire great ones.

BBJ: What does today’s luxury traveler want? What sets the Kimpton BEM Budapest apart in delivering that?

AD: Today’s luxury traveler values authenticity, intuitive service, and a sense of place. They seek moments that feel both personal and elevated. Kimpton BEM, designed by Marcel Wanders, was conceived not only to provide exceptional comfort but to create emotional resonance with each guest. Through thoughtful local touches, sustainable amenities,

BBJ: How do you avoid Ivory Tower syndrome? What steps do you take to place the hotel within the Budapest community and attract locals to your venues?

AD: We envisioned Kimpton BEM as part of Budapest, especially Buda; not just a hotel for travelers, but a place where locals feel genuinely at home. Agos Restaurant, Bar Huso, and feNNen Skybar were created with the city in mind, and the response has been overwhelmingly positive. Locals join us for Saturday brunch with live DJ, daily business lunch, and sunset rooftop sessions with live music, open daily from 5 p.m. We are proudly Hungarian. Our culinary offering celebrates the classics, reinterpreting our grandmothers’ favorites.

BBJ: You had the great good sense to be born in Budapest, but have traveled much of the world (from Vienna to New York and Bali, and from the Maldives to London), often working in the luxury marketplace. How has Budapest changed, and how does it compare to its luxury rivals today?

AD: Budapest offers a far richer narrative of European history than many neighboring capitals. From Roman ruins to Ottoman-era baths, from the AustroHungarian Monarchy to the scars of two World Wars and the 1956 Uprising, both sides of the Danube present an extraordinary journey for the curious traveler. The city’s boutique hotels, restaurants, hospitality, and evolving arts scene are drawing a more discerning, experience-driven audience. While much progress has been made, there is still room to uplift, and I remain endlessly hopeful.

BBJ: What have you found the most challenging aspect of running this hotel, and what most excites you about the future?

AD: Launching Central Europe’s first Kimpton hotel in a post-pandemic, high-inflation environment was an ambitious step and not without its challenges. Yet, with IHG’s global strength, the ownership’s development expertise, my own luxury hospitality experience, and Marcel Wanders’ bold design, I was confident we were creating a once-in-a-lifetime opportunity for Budapest. Kimpton BEM stands today as the city’s most beautiful luxury hotel, uniquely located in Buda, in an area that had never hosted a hotel before, just a stone’s throw from the Castle District. My mission was, and remains, to ensure that our team and service match the exceptional standards of this extraordinary property. We are no longer simply the newest hotel in town; we are now part of Budapest’s story. The chance to help shape that story in the years ahead is both humbling and exhilarating. My sincere thanks to all who have contributed to this journey.

ROBIN MARSHALL

Attila AE Domby, GM, Kimpton BEM Budapest.

4-star Hotels in Budapest

Ranked by no. of rooms

3

1123 Budapest, Alkotás utca 63–67. (1) 372-5400 h0511@accor.com 6

1087 Budapest, Barosstér 7–8. (1) 279-9000 reservations.budapest@ intercityhotel.com 7

KFT. www.continentalhotelbudapest.com

www.danubiushotels.com/hu/ szallodak-budapest/danubius-hotelhelia

HOTELS ZRT. www.danubiushotels.com

budcy-courtyard-budapest-city-center/ overview/

1074 Budapest, Dohány utca 42–44. (1) 815-1000 continentalinfo@ zeinahotels.com

1133 Budapest, Kárpát utca 62–64. (1) 889-5800 reception.helia@ danubiushotels.com

1067 Budapest, Terézkörút 43. (1) 889-3900 manager.budapest@ RadissonBlu.com

1088 Budapest, József körút 5. (1) 327-5100 reception.mbcc@ cpihotels.com

Gábor Brogyanecz

(1) 477-7200 reservations.budapest@ leonardo-hotels.com

Budapest, Bem rakpart 33–34. (1) 458-4900 h6151@accor.com

Margit-sziget (1) 889 4700 res.th@ hu.ensanahotels.com

1011 Budapest, Expo tér 2. (1) 263-6800 office@expohotel.hu

1137 Budapest, Vígszínház utca 3. (1) 814-0000 nhbudapestcity@ nh-hotels.com

1054 Budapest, Hold utca 5. (1) 510-3400 info@hotelpresident.hu 22

KFT. www.mellowmoodhotels.com/hu/ hotelek/impulso-fashion-hotel/

Hotels Zrt.

Balázs Bánhegyi

Molnár

1081 Budapest, Népszínház utca 39–41. (1) 299-0256 info@impulsohotel.hu

1053 Budapest, Kossuth Lajos utca 19–21. (1) 889-6000 astoria.reservation@ danubiushotels.com

1073 Budapest, Osvát utca 2–8. (1) 424-4700 nhcollectionbudapestcitycenter@ nh-hotels.com

1138 Budapest, Szekszárdi utca 16–18. (1) 688-4900 info.budapest@ rezidorparkinn.com

1062 Budapest, Andrássy út 52. (1) 884-8750 hotel@hoteloktogon.hu

1088 Budapest, Trefort utca 2. (1) 485-1080 reception@ museumhotel.hu

1052 Budapest, Városház utca 20. (70) 645-9590 info@emeraldsuites.hu

1061 Budapest, Andrássy út 8. (1) 611-7000 hotel@hotelmoments.hu

1052 Budapest, Apáczai Csere János utca 7. (1) 799-8400 budapest@ zenithotels.com

A www.hotel-palazzo-zichy.hu

ESTILO FASHION HOTEL / MMG HOTELS KFT. www.mellowmoodhotels.com/hotels/ estilo-fashion-hotel/

Sóvári

1051 Budapest, Vigyázó Ferenc utca 5. (1) 920-1000 prestigereception@ zeinahotels.com

Budapest, Lőrinc pap tér 2. (1) 235-4000 info@hpz.hu

1052 Budapest, Pesti Barnabás utca 6. (1) 799-0088 info@laprimahotel.hu

1056 Budapest, Váci utca 83. (1) 799-7170 info@estilohotel.hu

Budapest Október 6. u. 20. (1) 737-7210 sales-downtownhotel@ threecorners.hu

1063 Budapest, Munkácsy Mihály utca 5–7. (1) 462-2100 reservations.andrassy@ mamaison.com

1054 Budapest, Kálmán Imre utca 19. (1) 374-6000 hotel@parlament-hotel.hu

Szabó

Zsuzsanna Batykó Szűcsné Dóra Anek

1074 Budapest, Szövetség utca 33. (1) 796-3270 reception@bo33hotel.hu

1092 Budapest, Hőgyes Endre utca 4. (1) 610-4700 fo-lifestylehotel@ threecorners.hu

1081 Budapest, Csokonaiutca 14. (1) 299-0777 info@atriumhotel.hu

1051 Budapest, Mérleg utca 6. (1) 484-3700 reception.mmch@ mamaison.com

1056 Budapest, Váci utca 77. (1) 799-0077 info@altamodahotel.hu

Nagy-Szász Zsuzsanna Batykó Szűcsné Dóra Anek

1064 Budapest, Izabellautca 61. (1) 475-5900 reservations.izabella@ mamaison.com

1013 Budapest, Krisztina körút 41–43. (1) 488-8100 h1688@accor.com

& Boutique Hotels in Budapest

Ranked by no. of rooms

2

Budapest, Apáczai Csere János utca 12–14. (1) 327-6333 budapest@ihg.com

1052 Budapest, Apáczai Csere János utca 4. (1) 486-5000 reservations@ marriotthotels.com

1051 Budapest, Erzsébet tér 7–8. (1) 429-3777 hotel.corvinus@ kempinski.com

1014 Budapest, Hess András tér 1–3. (1) 889-6600 info.budapest@hilton.com

Mahuas

1036 Budapest, Árpád fejedelemútja 94. (1) 436-4100 info@aquincumhotel.com 7

HOTEL, BUDAPEST, AUTOGRAPH COLLECTION / DOROTHEA HOTEL SZÁLLODAÜZEMELTETŐ ZRT. https://www.marriott.com/en-us/ hotels/budkc-dorothea-hotelbudapest-autograph-collection

1051 Budapest, Dorottya utca 2. (1) 884-5100 reservations.dorothea@ autographhotels.com 8

(1) 883-9880 kimptonbem.info@ihg.com

(1) 550-5000 inquiries@ matildpalace.com

1052 Budapest, Petőfi Sándorutca 2–4. (1) 576-1600 info@parisiudvarhotel. com

1052 Budapest, Piaristautca 4. (1) 235-1800 budapest.reservations@ marriotthotels.com

1064 Budapest , Podmaniczkyutca 45. (1) 616-6000 mystery@ mysteryhotelbudapest. com

1013 Budapest, Clark Ádám tér 1. (1) 610-4890 reception@ hotelclarkbudapest.hu

5 Socialite

Why Hungarians Can’t get ‘Knafeh of’

The catalyst appears to have been the Dubai chocolate bar, filled with green pistachio cream, tahini paste made from sesame seeds, and pieces of crunchy knafeh (a traditional Arab dessert), and originally called “Can’t Get Knafeh Of It.” Now, it appears that 2025 is ushering in the era of the pistachio.

DAVID HOLZER

Hungary was an early adopter of the Dubai chocolate concept, even if only very few of us have tasted the rarer than hen’s teeth original product. The international food media may be writing about Dubai chocolate now, but I’ve been seeing concoctions inspired by it advertised outside the cafés and icecream parlors of Szeged since at least the summer of 2024.

A couple of months ago, in another step in the “pistachification” of this country, local chocolate maker Pöttyös introduced a frankly disappointing Dubai chocolate version of its Hungarikum refrigerator staple, the Túró Rudi bar. In the interests of world-class investigative journalism, I’ve been investigating why Hungarians can’t get “knafeh of” the Dubai chocolate flavor and pondering the deeper meaning of this country’s pistachio craze.

British-Egyptian Sarah Hamouda created the world-conquering Dubai chocolate flavor to satisfy her pregnancy cravings before co-founding FIX Dessert Chocolatier in

2022

to promote the product. FIX stands for “freakin’ incredible ‘xperience,” apparently. The Dubai chocolate bar’s original mouthful of a name nodded to the pieces of crunchy Middle Eastern knafeh pastry in the filling.

In December 2023, influencer Maria Vehera posted a video of herself on TikTok in raptures as a piece of Dubai chocolate melted in her mouth. After the

Dubai Chocolate

video went viral with over 25 million views, “Can’t Get Knafeh Of It” became the most desired chocolate in the world

Secret Appeal

Flavor experts unsurprisingly believe that the experience of eating the chocolate was the initial secret to its appeal.

Nabil Chehab, business development director at London chocolatier Maison Samadi, told Soumya Gayatri of the BBC that it also allows chocolate lovers to taste Middle Eastern knafeh, making it a “dessert in a chocolate bar.”

Turkish food writer Aylin Öney Tan explained to the BBC that “The real success of Dubai chocolate stems from its texture. The velvety gooeyness of the pistachio cream doesn’t just feel good on your palate; it is also visually attractive. Additionally, the crunchy texture of the kadayif pastry from the knafeh makes the dessert even more irresistible.”

Then there’s the allure of Dubai itself. A byword for indulgence for Hungarians, along with much of the rest of the world, Dubai conjures up images of eight-star hotels, Shangri-la shopping malls with en-suite ski slopes and gold with everything.

The problem is that the UAE is still the only place you can get your sticky hands on genuine Dubai chocolate, and the

bars

FIX produces every day sell out at high speed, making the idea of exporting it out of the question. Hence, chocolate knockoffs by brands such as Lindt

and now Pöttyös, the arrival of green tiramisu at my favorite Szeged café, Rudi es Fickó, Starbucks’ pistachio latte, and McDonald’s Pistachio McFlurry. This latter could be the name of a 1970s blaxploitation movie heroine. I wondered if Hungary’s early fascination with Dubai chocolate and all things pistachio was related to the desirability of Dubai as a destination for well-heeled Hungarians. Or perhaps the speed at which Dubai chocolate flavor and pistachio penetration affected Hungary could have something to do with the number of TikTok users in this country.

According to the Statista website, the average number of real Hungarian TikTokkers reached 2.07 million in March of this year. Given that the population of Hungary is around 9.6 million, that seems like a lot of users per capita. Mind you, The Global Statistics website puts the number of U.K. TikTok users at 24.9 million out of a population of roughly 68 million, so Hungary isn’t especially fond of TikTok.

Pistachio Power

Realizing that I wasn’t going to be able to prove if or why Hungary was an early adopter of Dubai chocolate, I turned my attention to the humble pistachio itself. Does it possess qualities that make it the zeitgeist nut for 2025?

The Vegnews website recently announced that we’re living through the pistachio era with the humble, highly nutritious, drought-resistant nut (actually a seed) “reshaping modern food trends.”

Most of the world’s pistachios are grown in Iran, Turkey and the United States. They generated nearly

USD 3 billion

for the Californian economy in 2024. They’re easy to grow in dry regions because they don’t need as much in the way of resources as other nuts, such as water-intensive almonds. Pistachios are packed with protein, healthy fats, fiber, vitamin B6, thiamine and copper, as well as other minerals and antioxidants. They’re also that cute green color.

In ancient Persia, pistachios were thought to bring good luck and were used in rituals. The color was used for dying fabrics. Today, pistachio continues to be lucky for social media influencers who plaster their posts with the color. It’s visually soothing and bursts with associations of freshness and health, much as did avocado.

This might explain why pistachio is also this year’s fashion “gastronomic hue,” as Bazaar magazine calls it. At recent fashion shows, “Models at Saint Laurent walked the catwalk in vivid green ’80s-inspired silhouettes, while designers at Valentino broke up a monochromatic look with a pair of punchy pistachio lace tights. And Gucci made the biggest case for the color, showing a range of creamy pastel to bold green dresses, skirts, bags, and knitwear.”

But, as with the backlash against avocados caused by the environmental impact of growing and shipping, there are mounting warnings that our passion for pistachios comes with an ecological cost. There is apparently now a global shortage.

Photo

VeszprémFest Returns for 23rd Staging This July

The city of Veszprém, famous for its natural beauty, is located at the meeting point of the Bakony Hills and the Balaton Uplands, about 15 km north of Lake Balaton. Over the past 30 years, the “City of Queens” has become renowned as a center of art, culture and science. It has also hosted one of Hungary’s most popular open-air summer music festivals, VeszprémFest, 22 times.

that would not commit itself to any single musical genre, but aimed for the highest international standards, bringing together the best artists from the worlds of opera, classical music, jazz, world music, and pop to Veszprém. The natural backdrop for these concerts was the baroque building of the Archbishop’s Palace in the town’s castle area.

Without being exhaustive, the list of guest artists over the past couple of decades has included Jamie Cullum, José Cura, Novak Jones, Tom Jones, Zoltán Kocsis, Paco de Lucía, Al di Meola, Anna Netrebko, Gregory Porter, Andrea Rost, and Lisa Stanfield, among many others.

Culture Matters

A regular look at culture issues in Hungary and the region

Francisco in 1994 and the winner of three Grammy Awards, the group will be giving its first concert here.

On July 10, a concert featuring Kossuth and Ferenc Liszt Prize-winning guitarist and composer Tibor Tátrai and Friends will take place. On July 11, the Postmodern Jukebox band, founded by Scott Bradlee, will perform. Its main profile is performing world hits from various eras in the swing-jazz style of the 1920s. The concert by the Grammy award-winning British alternative electro-pop band Clean Bandit, originally scheduled for July 12, has been postponed to 2026 due to illness. Since 2011, the Rosé, Riesling and Jazz Days have accompanied the festival, held at Óváros tér. Visitors can sample the wines of the region’s wineries while enjoying free concerts featuring some of Hungary’s finest pop, rock, and jazz artists.

Festival director Zoltán Mészáros launched the concert series in 2002 under the name Veszprém Festival Games. His idea was to create an event

The venue undoubtedly contributed to creating a unique atmosphere for visitors; however, in 2017, reconstruction works necessitated a change in location. Since then, the História kert has hosted some of the world’s most outstanding musicians.

A Sundowner to Remember

We were delighted to bring together members of the business community, the diplomatic corps, and international bilateral chambers of commerce for our traditional BBJ Summer Sundowner — held high above the Danube at the Liz & Chain Rooftop Bar of the Budapest Marriott Hotel on June 16. With the rooftop terrace full, the stunning views and refined atmosphere provided the perfect backdrop for this longstanding BBJ tradition.

Thanks are due to Angela Saliba, general manager of the Budapest Marriott Hotel, and her team for their continued partnership and warm hospitality, and to our partner Heineken, who again provided a beer fridge and complimentary beverages. They certainly help make our Sundowners not only a success but a truly memorable experience.

Most of all, we were delighted that so many guests could join us; we look forward to seeing many of you again at a BBJ event soon.

2025 Line-up

On July 8 this year, the main stage of História kert will feature American blues-rock guitarist, singer, and songwriter Joe Bonamassa. On July 9, the American rock band Train will take the stage. Formed in San

Details of the 2025 festival are available in English on the official website (veszpremfest. hu/en), where tickets can also be purchased. This year, VeszprémFest runs from July 8-12.

ÉVA BODOR

The line-up from the 2024 festival.

Chamber of Commerce Corner

This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu

Canadian Chamber of Commerce in Hungary (CCCH)

The CCCH invites members and friends of Canada to celebrate Canada Day with an evening of food, drinks, and community. The event commemorates the 158th anniversary of the Constitution Act of 1867, which officially marked the birth of the Canadian Confederation. The celebration aims to unite the local and international community in Budapest in honoring Canadian heritage in a relaxed and welcoming setting. Guests will be treated to a flavorful experience featuring classic Canadianstyle burgers, ice-cold beers, and an indulgent selection of donuts. Set against the backdrop of a summer evening, the venue offers the perfect ambiance for an informal yet spirited gathering. Whether you’re Canadian by passport or simply Canadian at heart, the event provides a unique chance to engage with the community, enjoy North American comfort food, and toast the country’s birthday. Participation is open to all, but prior registration is required due to limited capacity. • When: Tuesday, July 1, from 6-10 p.m. • Where: Pasarét Bisztró, Pasaréti út 100, 1026 Budapest. • Fee: Members HUF 16,900 + VAT; non-members HUF 21,900 + VAT.

British Chamber of Commerce in Hungary (BCCH)

What better way to enjoy the summer than with cocktails flowing at an exquisite location? The BCCH invites guests to its Summer Cocktail Mingling! event. Enjoy the height of summer in great company while being amongst the first to experience the new, glamorous, yet cozy BoHo Hotel, sipping from a curated selection of high-quality cocktails courtesy of Diageo and complemented by a selection of fine finger foods. • When: Thursday, July 3, 5:30-9 p.m. • Where: BoHo Hotel, Mikszáth Kálmán tér 3, 1088 Budapest (parking at Pollack tér garage behind the National Museum, a fiveminute walk from the venue.) • Fee: Members HUF 15,000 + VAT; non-members HUF 25,000 + VAT.

Italian Chamber of Commerce for Hungary (CCIU)

ComAgro-Sardo Kft. will mark its 30th anniversary in early July by hosting a celebratory event in Nógrádkövesd (70 km northeast of Budapest by road), organized with the support of the CCIU. The occasion will honor the company’s enduring commitment to preserving and promoting the rich culinary and cultural heritage of Sardinia. The event will offer guests an immersive outdoor experience, emphasizing the values of heritage, community, and conviviality. The celebration will feature an authentic Sardinian menu curated to showcase the region’s renowned gastronomic traditions. Attendees will be welcomed with a variety of traditional appetizers, including artisanal cured meats, cheeses, and fresh mozzarella. These will be followed by iconic regional dishes such as roasted suckling pig. Sardinian wines, including Vermentino and Cannonau, will complement the culinary experience. The afternoon will open with a performance by a tenor ensemble accompanied by piano. A multidisciplinary dance performance will follow this. During dinner, a live jazz trio will provide a sophisticated ambiance, followed later by a live band playing a fusion of retro and contemporary dance music. The evening will culminate in a special appearance by the Erox Martini Show and a dynamic DJ set.

• When: Friday, July 4, from 3 p.m.

• Where: Nógrádkövesd, Hungary.

Swiss-Hungarian Chamber of Commerce (Swisscham)

Over the past few weeks, a truly festive and inspiring atmosphere filled the Swiss Embassy Residence in Budapest. An elegant reception was held to celebrate the Swiss National Day, which also served as a touching farewell to the Swiss Ambassador JeanFrancois Paroz. Representatives from the diplomatic, institutional, and business sectors came together for a warm yet official evening. Next, the Swiss Picnic welcomed Budapest locals as part of the Switzerland in Budapest initiative. The event was opened with speeches by Ambassador Paroz and Mayor of Budapest Gergely Karácsony, followed by the raffle of a trip to Switzerland, drawn from participants in the previously announced “Tracing Switzerland in Budapest” prize game. Swisscham was also present with its own stand, where visitors could test their knowledge through a fun chamber-themed quiz, bringing smiles, great conversations, and community spirit to the event.

Hungarian-French Chamber of Commerce and Industry (CCIFH)

On Friday, June 13, the CCIFH hosted its traditional garden party in an exceptional setting, both in time, theme and place: Friday the 13th, at the beautiful Normafa Rendezvényház, overlooking Budapest. More than 200 guests gathered in the tranquil, green surroundings to enjoy an evening of elegant networking, fine food and drinks, and a touch of good fortune. The event opened with welcome remarks by chamber president László Károlyi. He was followed by the Ambassador of France to Hungary Jonathan Lacôte, who addressed guests in both French and Hungarian, highlighting the strength and vibrancy of the FrancoHungarian business community. Ágnes Ducrot, director of the chamber, extended her thanks to the event’s sponsors and partners, whose support made this special evening possible. Guests enjoyed a buffet dinner, live music, wine, cocktail and beer tastings, a raffle, game of luck animations and interactive partner booths, all in a relaxed and stylish open-air setting. The evening blended business with pleasure, making space for new opportunities and meaningful conversations.

American

Swedish Chamber of Commerce in Hungary (SCCH)

Team Sweden in Hungary celebrated one of Sweden’s most beloved traditions, Midsummer, in the Residence of the Swedish Ambassador, surrounded by great people, delicious food, flowers, and joyful music. The evening began with speeches by Swedish Ambassador Diana Madunic, Hungary’s Minister of Defense Kristóf SzalayBobrovniczky, and SCCH president Roland Jakab about freedom in all its forms, on individual, societal and global levels. They also emphasized the importance of long-term cooperation and the deep, enduring bond between Sweden and Hungary, a connection rooted in science, culture, and shared values. Guests created their own Midsummer wreaths courtesy of Volvo Cars, danced to the vibrant tunes of Louisiana Avenue from Sweden, and enjoyed a feast of Swedish and Hungarian delicacies. They even had the chance to “fly through time” in the iconic DeLorean from the “Back to the Future” film, thanks to Sigma Software Group. This year marks the 30th anniversary of the SCCH. The chamber will celebrate this legacy and look ahead in a special anniversary publication later this year.

German-Hungarian Chamber of Industry and Commerce (DUIHK)

With more than 350 guests in attendance, including members, partners, and prominent figures from the worlds of business, politics, and society, the DUIHK Garden Party provided an excellent opportunity for networking and enjoying the wonderful summer atmosphere and catering. The evening also offered a chance to reflect on the first half of the year and prepare for the tasks ahead. The newly elected chamber president, Róbert Keszte, told guests, “Work has begun with the new Presidium and Advisory Board. We are preparing topics that will be important for 2025 and 2026 in three working groups.” He wished all guests an enjoyable evening and pleasant conversations. Barbara Zollmann, the DUIHK’s managing director, thanked everyone “who is committed to our chamber, and I look forward to starting the second half of the year with you.”

Chamber of Commerce in Hungary (AmCham)

AmCham Hungary has announced the establishment of two new working groups: Digitalization and Travel, Tourism & Entertainment. The former, launched in early 2025, is committed to fostering collaboration, sharing best practices, and supporting companies in their digital transformation journeys. It will also serve as a platform to advocate for policies that strengthen a competitive and resilient digital

ecosystem. Imre Somogyi, CEO of Attrecto, leads the Digitalization Working Group. The Travel, Tourism & Entertainment Working Group, co-chaired by Angela Saliba, multiproperty general manager at Marriott International and Márton Vajda, co-owner and managing director at Collectives-Inner City Investments, will provide a forum for open dialogue, knowledge sharing, and networking among industry leaders. Members will

jointly explore ways in which they can contribute to and align with Hungary’s evolving national tourism strategy, while discussing topics such as talent development within the sector, sustainable operational practices, and the role of tourism in national policy. The new platforms reflect AmCham’s ongoing commitment to addressing the evolving priorities of the business community and enhancing Hungary’s long-term competitiveness.