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REAL ESTATE review
HOW AND WHEN WILL HOTEL SECTOR BOUNCE BACK FROM COVID? Developers, investors and hotel operators have seen strong potential for hotel development in recent years against a backdrop of rising tourism and demand indicators. However, the hotel and the hospitality sector has been one of the most severely hit by the coronavirus pandemic, with the impact of the crisis on tourism and international travel. By Gary J. Morrell Prior to the appearance of COVID-19, the sector had begun to attract developers and investors from the more traditional commercial property sectors seeking long-term partnerships with hotel operators for the day-to-day operation of the hotels. A number of projects at various stages of preparation and construction are in the pipeline in
Budapest and the wider Hungary, although pipelines are difficult to estimate in the current environment. Heading into 2020, Hungary had good expectations of exceeding the 16 million in airport passenger traffic that visited the county in 2019, the type of figure that has helped hotel become a mainstream development and investment market sector.
When the sector might recover from a development and investment perspective remains to be seen, although the importance of the industry to national income cannot be underestimated. Further, hotel development has contributed to the redevelopment of the infrastructure and enhanced the atmosphere of Budapest and other areas of Hungary.
Hilton Garden Inn interior.
