At the CEE Property Forum 2019, held in Vienna on 18-19 September, was set as a goal to gather the leading decision makers of the European and CEE property world to discuss the major trends and future of their industry. CEOs, influential investors, bankers, advisors, developers, fast-growing proptech startup founders, architects, valuers from more than 30 countries.
With the boom in tourism, the hotel market in the region offers a wealth of opportunities, while becoming an increasingly attractive asset for investors. Tourist needs are changing rapidly with the spread of low-cost airlines and accommodation services, but the CEE region is by far the best market for hotel developments. The conference provided an opportunity for cross-industry dialogue, panel discussions with European investors and a Central European banker roundtable.
At the two-day conference, VLK Cresa was represented by Péter Takács, who has a unique experience, combination of opening and operating a hotel chain and having an international real estate consultancy background also. At the roundtable discussion, our partner, based on experience from recent hotel projects, confirmed that the hotel acquisition market is buzzing today in Poland and Hungary the market is very active, everyone wants to buy an operating hotel but it is difficult to find a good product at a fair price. Fortunately, the rental scheme is spreading, which attracts institutional investors and family offices as well, and almost all banks are happy to finance these projects, as the cash-flow is more predictable.
In the hotel development fever, brands have been launched in Hungary that do not yet have a unit in Budapest. They still prefer management-based management contracts and higher risk developers, banks and investors are actively negotiating with them. The burgeoning investment market for office buildings and falling yields are also diverting those interested in the hotel market. Primary the tourist performance indicators, the relatively lower prices and more attractive returns in the region attract customers, but it is just as important for the tenant, the rent to be predictable as for an office or commercial property.
In Hungary, developers also see increasing potential in hotels, both domestic and international players are expanding in this area, but for the time being, the capital is still the target area. Because the number of the good locations is decreasing, we can see it already, and we will see more and more the feature switch in projects, when an office building or a condominium becomes a hotel.
Thanks to our experience in hotel development, VLK Cresa has been involved in several internationally recognized projects. We are proud that we also contributing to the development of Budapest and Hungary by opening new hotels and catering units.
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