Buying a Hotel in Hungary: Complete Guide and Checklist

Published on October 4, 2025 and written by Cyril Jarnias

Buying a Hotel in Hungary: An Investment Opportunity

Purchasing a hotel in Hungary can be a fascinating and lucrative venture, provided you approach the project with proper preparation and a thorough understanding of the local market.

With its rich cultural heritage, breathtaking landscapes, and growing economy, Hungary represents an exceptional opportunity for savvy investors.

This article provides a comprehensive checklist to navigate the crucial steps of buying a hotel in this country, highlighting the legal, financial, and operational aspects that should not be overlooked.

Whether you’re an experienced investor or new to the hotel industry, having a well-defined strategy will help make your project a success.

Hungarian Hotel Market Overview

The Hungarian hotel market shows dynamic growth, supported by a tourism boom and consistent investment in accommodation offerings. Budapest remains the main driver, with nine new hotels planned for 2025 and nearly 3,700 additional rooms under construction. This expansion also extends to the capital’s outskirts and areas near the airport, such as the new TRIBE Budapest Airport hotel targeting business travelers and digital nomads.

Key Sector Trends:

• Travelers now prioritize authentic and local experiences, boosting demand for boutique hotels and eco-friendly establishments.
• Service personalization (digital concierge, streamlined online booking) is becoming essential.
• Wellness-focused amenities (spas, fitness) are particularly sought after in the luxury segment.

High-Growth Areas & Emerging Regions:

• Budapest remains the premier destination thanks to its cultural heritage and nightlife.
• Cities like Debrecen or Pécs are seeing a notable increase in tourist flow due to their cultural festivals and proximity to attractive natural sites.
• Lake Balaton’s seasonal hotel offerings are growing with the emergence of innovative establishments tailored to summer tourism.

Region	Tourism Growth	Dominant Typology
Budapest	Very High	International Hotels
Lake Balaton	Seasonal	Resorts & Boutiques
Debrecen/Pécs	Emerging	Boutique Hotels

Influential Economic Factors:

The hotel sector is projected to generate $805 million in revenue in 2025, with an estimated annual growth of 6.11% until 2030.

Hungary recently surpassed the symbolic milestone of five million annual guests; this increased attendance encourages the constant modernization of the hotel inventory.

Government policies aim to strengthen international appeal through investments in tourism infrastructure (transportation, digital promotion).

Evolution of Traveler Preferences:

• Search for unique experiences
• Preference for sustainable accommodations
• Heavy use of digital platforms for booking

Opportunities & Challenges for Foreign Investors:

Opportunities:

• Promising market supported by good value for money compared to neighboring capitals
• Policy favorable to tourism investments

Challenges:

Gradual increase in operational costs (skilled labor)

Strict regulation regarding real estate acquisition: foreign buyers must obtain special approval from the Hungarian government for land or property purchases; however, these procedures are generally facilitated in the tourism sector

Summary List:

• Opportunities: Stable Growth / Enhanced Attractiveness / Institutional Support
• Challenges: Administrative Processes / Increased Competition / Operational Costs

Dominant Hotel Chains:

International:

• AccorHotels
• Marriott International
• Hilton Hotels & Resorts

National:

• Danubius Hotels Group
• Mamaison Hotels

Prospects remain favorable thanks to local dynamism combined with political support. Thus, the Hungarian market continues to attract both major chains and independent investors eager to benefit from an environment conducive to hotel development.

Essential Steps for Acquiring a Hotel in Hungary

Market Research

Analyzing the Hungarian hotel market is a crucial step to identify opportunities and anticipate challenges. Hungary attracts a growing number of visitors, with over five million tourists welcomed in 2025, largely thanks to Budapest, the hub of urban and business tourism, as well as thermal regions, renowned for their wellness appeal. Competition remains moderate, with approximately 4,800 hotel establishments, while demand is supported by steady tourism growth and a marked interest in authentic experiences and niche hotels. Current trends favor eco-friendly accommodations, personalized services, and digital booking platforms.

Due Diligence

Due diligence revolves around several essential aspects:

• Financial Audit: Analysis of balance sheets, debts, financing contracts, profitability, cash flow history.
• Legal Verification: Check of property titles, compliance of operating permits, absence of ongoing disputes, adherence to local standards.
• Operational Review: Assessment of current contracts (suppliers, staff, maintenance), asset inventory, verification of licenses (hotel, food service, safety, hygiene).
• Potential Risks: Analysis of customer claims, online reputation, compliance with environmental and health obligations.

Financing

Several financing options are available for acquiring a hotel in Hungary:

Financing Option	Main Characteristics
Local Bank Loan	Classic solutions for investors with solid contribution.
Private Investors	Partnerships, family offices, specialized funds.
Grants and Public Aid	Government or European programs for tourism, renovation, digitalization, or sustainable development.
Real Estate Leaseback	Alternative to limit initial contribution and spread costs.

Negotiation and Offers

• Prepare a strong offer dossier, including market analysis, operational plan, and valuation justification.
• Rely on an independent appraisal to set a fair price.
• Anticipate negotiation margins while remaining firm on critical points (condition of facilities, hidden liabilities, warranties).
• Propose conditional clauses (obtaining financing, satisfactory due diligence results).
• Maintain professional and transparent communication with the seller to build trust.

Operational Transition

To ensure a smooth takeover:

• Meet and evaluate existing staff, clarify contracts, and prepare an HR plan (recruitment, training, change management).
• Audit and upgrade IT systems (PMS, booking tools, customer review management).
• Maintain effective marketing strategies or revamp them to better target clientele (digital, social media, OTAs).
• Ensure service continuity for current customers to preserve the establishment’s reputation.

Legal and Regulatory Aspects

• Comply with Hungarian hospitality laws: registration obligations, safety standards, accessibility, hygiene.
• Understand local taxation: property taxes, VAT on accommodation, corporate taxes, tourist levies.
• Ensure environmental compliance (waste management, energy savings, obligations related to thermal installations if applicable).
• Anticipate regular inspections by health and tourism authorities.

Practical Tips to Overcome Obstacles

• Surround yourself with local advisors (lawyers, accountants, specialized consultants).
• Consider cultural differences: management styles, expectations of Hungarian and international clients.
• Train in local business practices and establish a network in the tourism sector to facilitate integration and quick resolution of regulatory or operational issues.

Due Diligence and Regulations to Know

Essential Due Diligence Steps When Buying a Hotel in Hungary:

• Examination of Property Titles
  Verification of the validity and regularity of property titles with the Hungarian Land Registry (Ingatlan-nyilvántartás). This ensures there are no undisclosed mortgages, easements, or ongoing disputes on the property.
• Environmental Investigations
  Analysis of the site’s environmental compliance: identification of potential pollution, adherence to local waste management standards, presence of environmental permits if technical or energy installations are involved.
• Financial Audits
  Review of annual accounts and financial statements from the last three to five years, check of debts, off-balance sheet commitments, analysis of operating ratios (occupancy rate, margins, fixed/variable costs), and verification of the absence of tax or labor disputes.
• Verification of Operational Licenses
  Check the validity and transferability of operating licenses (accommodation, food service, alcoholic beverages, pools, ancillary activities). Verification of specific permits required for special facilities (spa, gyms, events, etc.).
• Analysis of Current Contracts
  Review of employment contracts, leases, commercial partnerships, and supplier contracts to identify transferable commitments or those needing renegotiation.

Step	Essential Checkpoints
Property Titles	Land registry, mortgages, disputes
Environmental Investigations	Pollution, waste compliance, permits
Financial Audits	Accounts, debts, ratios, tax disputes
Operational Licenses	Validity, transferability, specific permits
Current Contracts	Review and analysis of transferability

Main Hungarian Regulations to Comply With:

• Real Estate Investment Law
  Compliance with the Law on Acquisition of Real Estate by Foreigners (1996. évi LXXVIII. törvény), requiring prior approval from local authorities for non-residents, with an administrative file to be submitted to the competent municipality or land department.
• Tax Regulations Specific to the Hotel Sector
  Application of VAT (ÁFA, standard rate 27%), local tourist tax (IFA), corporate tax (TAO), and compliance with reporting obligations to the National Tax and Customs Administration (NAV).
• Health and Safety Standards
  Compliance with provisions of the Hungarian Labor Code, fire safety standards (Országos Tűzvédelmi Szabályzat), health regulations for hospitality (Népegészségügyi Hivatal), and accessibility standards for people with reduced mobility.

Relevant Hungarian Administrative Authorities:

• Ingatlan-nyilvántartás (Land Registry)
• NAV (Nemzeti Adó- és Vámhivatal): tax and customs administration
• Önkormányzat (local municipality): issuance of certain permits
• Népegészségügyi Hivatal (National Public Health Authority)
• Katasztrófavédelem (National Disaster Management Authority): fire safety

Registration and Legal Compliance Process:

1. Sign a sales agreement before a notary.
2. Verify titles and obtain necessary administrative approvals.
3. Submit the acquisition file to the land registry.
4. Obtain or transfer hotel operating licenses.
5. Declare the operation to the NAV for tax registration.
6. Bring facilities into compliance with health and safety standards.

Key Takeaway:
Assistance from a lawyer specialized in Hungarian real estate law is highly recommended at every stage to secure the transaction, guarantee regulatory compliance, and avoid any legal or financial risk.

Tourism Statistics and Trends in Hungary

Recent Tourism Statistics in Hungary

In May 2025, Hungary surpassed the five million visitor mark, reaching this figure eleven days earlier than the previous year. This performance represents an overall growth of 18% compared to last year, with 2.4 million domestic tourists and 2.6 million international tourists in the recent period. Growth is primarily driven by foreign visitors, whose numbers increased by 29% early in 2025, generating a 16% increase in international overnight stays.

Main Visitor Nationalities

The main nationalities of tourists in Hungary are:

• Germany
• Romania
• Italy
• United Kingdom
• Austria

The majority of these visitors prefer Budapest as a destination, but marked growth is also observed around Lake Balaton, in Gyula, and in the Bük-Sárvár region.

Most Popular Tourist Attractions

• Budapest: architectural heritage, thermal baths, dynamic cultural life
• Lake Balaton: largest lake in Central Europe, water and beach activities
• Mátra–Bükk Mountains: hiking, thermal resorts, nature
• Debrecen and Nyíregyháza: cultural centers and events
• Historical Sites: castles, churches, and traditional villages

Seasonal Trends and Impact on Hospitality

Peak attendance corresponds to:

• Easter and Spring Holidays: 20 to 36% increase in domestic tourism depending on the period
• Long Weekends in May: increase in occupancy and revenue
• Summer Season: international influx, particularly around Lake Balaton

The hotel market particularly benefits from these periods, with hotels being the predominant choice for foreign accommodation (86% of international overnight stays early in 2025).

Occupancy Rates and Hotel Sector Revenue

Indicator	Value Early 2025
Number of Tourist Establishments	20,565
Number of Commercial Hotels	918
International Overnight Stays	+16% (January 2025 vs 2024)
Revenue Generated (January)	61.5 billion HUF (+21%)
Revenue Long Weekend in May	16 billion HUF (+31%)

Projections and Attractiveness for Hotel Investment

• Sustained Growth: Experts anticipate continued strong demand, driven by interest in cultural and natural destinations.
• Regionalization of Growth: Some regions like Budapest or Lake Balaton are experiencing rapid expansion, while others are progressing more slowly.
• Increase in Revenue and Attendance: The hotel sector directly benefits from the increase in flows, strengthening the appeal for investments in hospitality, particularly in high-growth areas.

Key Takeaway

The growth dynamics of Hungarian tourism, the diversity of visitor nationalities, marked seasonality, and the progression of occupancy rates and revenues make Hungary a very attractive market for hotel purchases, particularly in the most visited and expanding regions.