Hotel Development Trends in Budapest

Before the year-end rush began, our office hosted an exciting professional roundtable discussion under the title Hotel Development Trends in Budapest.

We would like to thank the roundtable participants for their valuable insights:
Nóra Demeter, founder and lead designer of Demeter Design Studio
Annamária Kele, Director of Sales at W Budapest
Dr. Farshad Khazei, real estate investor
István Matus, Chief Architect of Terézváros
Béla Bánáti, co-founder and lead architect of Bánáti + Hartvig Architects
And our moderator, Zsuzsanna Molnár, communications specialist of Bánáti + Hartvig Architects.

Here are a few thought-provoking ideas that emerged from the evening:

The discussion began with the question of how Budapest positions itself from a tourism perspective through its architecture and buildings, and how the hotel industry fits into this narrative. Participants noted with some regret that while there have been attempts, a comprehensive concept for the city’s tourism offering has yet to be developed. There is no identifiable holistic vision; rather, the city’s tourism “story” is forming in a more additive, piecemeal manner. Despite this, a positive takeaway was that even amid this search for identity, the number of guest nights in the city continues to rise. However, visitors often feel that the available mix of accommodation types doesn’t meet all needs: both in terms of accommodation and entertainment options, the mid-range segment is underrepresented. As such, 2024 has seen the most growth in the luxury hotel sector.

As architects, it’s important to understand how the expectations of hotel guests are evolving. In the past, the emphasis was on consistent standards—travelers expected to receive the same experience and service from global hotel chains anywhere in the world. Today, however, architecture and interior design play a crucial role in experiencing and understanding a city, and this has placed a greater focus on uniqueness and storytelling through design.

In this spirit, participants agreed on the importance of making the protected experiential spaces created by hotels accessible to the broader public. The newly renovated W Budapest, designed by our office, consciously organizes programs that give not only guests but also the general public the chance to explore the building and its rich history.

According to the experts, what visitors most desire is an experience that allows them to engage with Budapest’s past, while still enjoying modern comforts. From a heritage protection standpoint, it is encouraging that preserving the “old” has become economically valuable. However, it is unfortunate that the interior design of most hotels is carried out by foreign professionals. As a result, the interpretation of the building—and the city—is filtered through their perspectives, which doesn’t always provide a realistic representation.

Sustainability is a core value of our firm, so the conversation concluded with a discussion of the relationship between sustainability and the hotel industry. The participants agreed that the first step in this direction is the preservation and, when necessary, reconstruction of existing buildings. This approach also aligns with travelers’ desires to learn about a city’s historical depth through its architecture.

That said, sustainability almost always involves a certain degree of comfort trade-off, while hospitality is inherently about providing the highest possible level of comfort to guests. For this reason, the hotel industry still lags behind in terms of operational sustainability—even though many steps are being taken, such as optimizing water use.

All participants agreed on the importance of this topic. Since it is largely a matter of cultural attitude, it is essential that all stakeholders—interior designers, architects, operators, and developers—feel a sense of responsibility and, even if only in small steps, strive to shape the perspectives of those around them.

Annamária Márton, Architect, RFP Engineer