Published on and written by Cyril Jarnias
Acquiring a Hotel in Romania: A Promising Venture
Acquiring a hotel in Romania can be a fascinating and promising venture, but it requires careful preparation to avoid the common pitfalls of this complex process.
Thanks to its rich cultural heritage and economic dynamism, Romania offers attractive opportunities for investors looking to enter the hospitality industry.
Good to Know:
Yet, to succeed in this bold project, it is essential to follow a comprehensive checklist that takes into account the legal, financial, and operational aspects specific to this country, while remaining attentive to local nuances.
This article will guide you step by step to ensure your investment is not only sound but also profitable, providing you with the keys needed to successfully navigate the Romanian hotel market.
Overview of the Hotel Real Estate Market in Romania
The hotel real estate market in Romania is experiencing sustained growth, driven by an increase in tourism, strong interest from foreign investors, and a positive evolution of economic fundamentals.
Factors Influencing the Market
- Rise in international and local tourism, especially in Bucharest and major regional cities.
- Entry of international hotel brands, particularly in the 4- and 5-star segment, raising the overall quality of the offering.
- Strong presence of foreign investors, who accounted for 90% of the total commercial real estate investment volume in the first quarter of 2025.
- Favorable economic conditions: increase in average salary (+13% in 2024), stable unemployment rate, and rising purchasing power.
Recent Trends
- The hotel sector shows a compound annual growth rate (CAGR) exceeding 15% over the next five years.
- Bucharest is expected to see a 6% growth in hotel supply between 2024 and 2026, adding 2,400 rooms, surpassing the regional average.
- Twelve new large hotels (including five 5-star and six 4-star) will open by the end of 2025.
- Hotel occupancy rates in Bucharest remain among the highest in the country, especially in the upscale segment.
| Region | Average Purchase Price (€/m²) | Occupancy Rate (%) | Projected Supply Growth (2024-2026) |
|---|---|---|---|
| Bucharest | 2,000 – 3,500 | 70 – 80 | +6% |
| Cluj-Napoca | 1,700 – 2,800 | 65 – 75 | +4% |
| Constanța | 1,600 – 2,500 | 60 – 70 | +3% |
| Brasov/Sibiu | 1,500 – 2,200 | 60 – 75 | +3% |
Investor Demand and Profiles
- International investors primarily target premium assets in major cities and tourist areas (coastline, mountains, historic centers).
- The upscale segment particularly attracts global operators (Hilton, JW Marriott, etc.).
- Domestic investors remain active, but the majority of volume is now foreign, signaling the market’s growing maturity.
Market Challenges
- Sometimes complex local regulations, especially regarding urban planning and obtaining permits.
- Intense competition, with the rapid upscaling of supply and the arrival of new international brands.
- Uneven infrastructure, especially outside major urban centers, which can limit development in some secondary regions.
- Potential slowdown of new projects in the medium term, due to the low pipeline expected after 2025.
Future Outlook
The Romanian hotel market is expected to remain dynamic in the medium term, driven by tourism growth, infrastructure improvements, and the arrival of new international brands.
Solid economic fundamentals and the expected yield compression for premium assets should maintain foreign investor interest.
However, the need to invest in infrastructure and simplify regulations remains crucial to ensure sustainable and balanced sector growth.
Good to Know:
In 2023, the hotel real estate market in Romania is booming, driven by the post-pandemic tourism surge and increased demand from foreign investors seeking to capitalize on high average occupancy rates, around 70% in tourist hubs like Bucharest or Cluj-Napoca. Hotel purchase prices vary, averaging 1,500 to 2,000 euros per square meter, particularly in sought-after regions like Transylvania. However, investors must be aware of complex local regulations and challenges related to infrastructure modernization. Competition is intensifying with the emergence of new players, but prospects remain promising thanks to the country’s sustained economic growth, increasing the appeal of major cities and the Black Sea coast.
Taking Over a Hotel in Romania: Essential Steps
Essential Steps for Taking Over a Hotel in Romania
1. Preliminary Analysis and Preparation
- Assess the hotel’s profitability: analyze the balance sheet, operating results, and local market trends.
- Learn about the local context: tourism growth, integration into the Schengen Area (planned for 2025), and Romania’s attractiveness to international chains.
2. Legal and Administrative Steps
- Verify regulatory compliance: mandatory licenses (e.g., IV license for alcohol), technical diagnostics (accessibility, fire safety, hotel classification).
- Transfer operating permits.
- Complete mandatory training (food hygiene, operating permit).
- Conduct a physical inventory of equipment and stock before final signing.
3. Financial Aspects
| Step | Key Points |
|---|---|
| Valuation | Recent balance sheet as a basis; possible variations until final sale |
| Financing | Recommended personal contribution ≥ 30%; approach banks or mutual guarantee organizations |
| Planning | Include post-acquisition renovation/repair work in the financial plan; include margins for contingencies |
- Negotiate the price based on an independent valuation.
- Build a solid case to convince financiers.
4. Infrastructure & Reputation Assessment
- Inspect the general condition of the building (roof, plumbing, electrical, etc.).
- Examine hotel equipment (bedding, professional kitchen, etc.).
- Analyze online customer reviews.
- Review the sanitary inspection report.
5. Post-Acquisition Commercial Strategies
- Modernize if necessary: light or complete renovation depending on the desired positioning.
- Develop an offering tailored to the dominant tourist profile (leisure vs. business).
- Implement a customer loyalty program through special offers or local partnerships.
Examples:
- Weekend discovery packages targeting foreign tourists
- Off-season preferential rates
- Guest loyalty programs
6. Integration into the Local Market & Understanding Tourist Expectations
Practical Tips:
- Establish contact with local tourism offices
- Integrate into regional/hotel professional networks
- Adapt multilingual communication based on the majority nationalities among clientele
Key Takeaway: The choice of location remains crucial, as does a good understanding of new tourism consumption patterns in Romania — the growing importance of digital and increased demand for modern comfort.
Good to Know:
Taking over a hotel in Romania first involves verifying the establishment’s compliance with local regulations, requiring a study of commercial real estate laws and hotel operating licenses. Financial evaluation is crucial, including an in-depth analysis of current accounting books and a value estimate by experts to guide purchase price negotiations. On a practical level, meticulously examine the state of the infrastructure and the history of customer satisfaction. The post-acquisition phase should include strategies to revitalize the hotel’s reputation, improving services to meet tourist expectations, who are often eager for cultural discoveries and picturesque nature. Integrating into the local market and understanding tourist behavior, for example by using typical Romanian products and services, can help attract and retain a diverse clientele.
Due Diligence for Hotel Investments in Romania
Essential Steps of Due Diligence When Buying a Hotel in Romania
1. In-Depth Financial Analysis
- Review of income statements, balance sheets, and cash flow statements for the last three to five years.
- Assessment of actual revenues, analysis of operating expenses, and comparison with standard hotel ratios.
- Preparation of financial projections incorporating forecast expenses (maintenance, staff, taxes, investments).
- Verification of consistency between the proposed acquisition value and the book value of assets.
- Analysis of profitability, financing structure, and identification of potential financial risks.
| Documents to Review | Primary Objective |
|---|---|
| Annual accounts | Assess historical profitability |
| Forecast budgets | Estimate future potential |
| Debt contracts | Understand financial commitments |
| Audit reports | Detect potential anomalies |
2. Legal Audits
- Verification of ownership (title deeds, extract from the land register “Cartea Funciara”).
- Analysis of any ongoing or past litigation.
- Check compliance with local regulations (urban planning, safety, labor law).
- Verification of the seller company’s legal structure and the validity of major contracts (franchise, lease, suppliers).
Key Takeaway:
Any legal irregularity can lead to the nullity of the transaction or hidden costs.
3. Environmental Audits
- Assessment of compliance with local environmental standards (soil pollution, presence of asbestos, wastewater management).
- Identification of obligations to meet standards or risks of penalties.
- Consideration of potential impacts on asset valuation.
To Note:
Environmental non-compliance can lead to substantial costs and block operations.
4. Verification of Licenses and Permits
- Check all authorizations necessary for operating a hotel in Romania: hotel operating license, sanitary permits, fire safety permits, alcohol and restaurant authorizations, etc.
- Verify the validity and renewal of licenses.
List of Main Required Permits:
- Commercial operating authorization
- Tourism license issued by the National Authority for Tourism
- Sanitary and fire safety permits
- Specific authorizations for restaurant/bar
5. Study of the Local Market and Tourism Trends
- Analysis of the Romanian hotel market dynamics: occupancy rates, average prices, seasonality, customer typology.
- Study of tourism trends (visitor origin, demand evolution, local infrastructure projects).
- Benchmarking with direct competition and identification of growth drivers.
| Market Criteria to Analyze | Sources of Information |
|---|---|
| Annual occupancy rate | National statistics, tourism offices |
| RevPAR (Revenue Per Available Room) | Industry reports, specialized firms |
| Urban and tourism projects | Local press, municipality |
| Customer profile | Internal data, booking platforms |
6. Analysis of Reputation and Customer Reviews
- Assessment of customer satisfaction on major platforms (Booking, TripAdvisor, Google).
- Analysis of trends in comments: cleanliness, service, location, value for money.
- Identification of areas for improvement and differentiating strengths of the establishment.
To Note:
Digital reputation has a direct impact on occupancy rates and hotel value.
7. Consultation of Local Experts
- Seek advice from lawyers specialized in Romanian real estate and hotel law.
- Consult local tax advisors to optimize the acquisition structure and anticipate applicable taxation.
- Engage technical experts (engineers, architects) for structural and environmental audits.
List of Experts to Mobilize:
- Real estate/hotel lawyer
- Local tax advisor
- Accountant
- Engineer/architect
- Tourism/hospitality consultant
Key Takeaway
Guidance from local professionals and conducting a thorough due diligence are essential to secure the investment, prevent hidden risks, and maximize the hotel’s growth potential in Romania.
Good to Know:
During due diligence for buying a hotel in Romania, it is crucial to meticulously evaluate financial aspects, analyzing current revenues and forecast expenses to ensure profitability. Legal audits are essential to confirm compliance with local regulations, while environmental audits ensure the establishment meets environmental standards. Scrutinize the necessary licenses and permits for the legal operation of the hotel. Understanding the dynamics of the Romanian hotel market and tourism trends allows for assessing growth potential, while analyzing customer reviews and ratings on online platforms provides insight into the hotel’s current reputation. It is also crucial to consult local experts, such as Romanian lawyers and tax advisors, for informed advice and to avoid pitfalls, such as non-compliance with the country’s complex standards.
Recent Tourism Statistics in Romania
Recent Tourism Statistics in Romania (2025)
| Indicator | 2025 Data |
| Foreign tourist arrivals (May) | 239,462 |
| Growth in foreign arrivals Q1/Q1 | +11.7% |
| Tourism contribution to GDP | 5.72% |
| Tourism revenue target (2035) | 3 billion euros |
Sector Evolution and Trends
The Romanian tourism sector has been growing strongly since the beginning of 2024, particularly thanks to partial integration into the Schengen Area (air and sea), facilitating the arrival of European tourists.
The general rise in prices in Europe (+10 to +12%) is steering visitors towards Romania for its good value for money and increased accessibility.
The country aims to double the number of international visitors within ten years, with a strategic plan focused on modernization, digitalization, and the development of seaside and spa tourism.
Major Tourist Regions
- Bucharest: cultural and economic capital
- Transylvania: medieval castles (Bran/Dracula), Saxon towns
- Danube Delta: ecotourism, wildlife observation
- Black Sea Coast: popular seaside resorts like Mamaia
- Thermal/Carpathian regions: renowned spa resorts
Recent Observed Trends
List of trends:
- Shorter but more frequent stays
- Marked increase outside the traditional season
- Experiential tourism preferred (local gastronomy, cultural festivals)
Most popular types of activities:
- Cultural discovery and historical heritage
- Nature & ecotourism
- Wellness/thermalism
- Summer seaside
Economic Stakes
- Sector contribution estimated at nearly 6% of GDP for 2025.
- Strong focus on hotel innovation and qualitative improvement of services to attract a growing international clientele.
These figures demonstrate notable potential for investors in the Romanian hotel market, with positive momentum in both volume and diversification of tourism segments.
Good to Know:
In 2022, Romania welcomed approximately 12 million international and domestic tourists, marking a 15% growth compared to the previous year, with Bucharest and the Transylvania region among the most popular destinations. The tourism sector contributes about 3.5% of the country’s GDP, according to the Romanian Ministry of Tourism report. The average length of stay ranges between 3 and 5 days, with particular interest in cultural and outdoor activities. These trends indicate significant potential for the hotel market, especially in mountainous and coastal regions. Sources: Romanian National Institute of Statistics, Ministry of Tourism, 2023.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
