With the hotel business being a rare bright spot in Hungary’s otherwise stagnant economy, the sector is drawing in an increasing volume of both investment and the talent needed to make sure new deals are being done well, and for the right reasons.
The latest addition to this talent pool is Colliers International, which this week announced its Hungarian unit has opened a dedicated hotel and leisure department similar to those already operating in more developed markets around the world.
Kata Mazsaroff, a member of the new team, said that Colliers’ decision was based on the most straightforward of reasons: An overdue but obvious growth in the higher-end of the hotel sector, and a need for more nuanced advisory services for investors wagering on this growth.
“Hungary reacted a little slower than neighboring CEE countries to the hotel market, and now we are trying to catch up,” Mazsaroff said. “It’s predicted that around 8,000 hotel rooms will open in Budapest within the next six years, but even then we would still at 75% of Prague’s supply.”
According to the Hungarian-American Mazsaroff, this growth will run the gamut from tourist hotels to “wellness” destination hotels and conferencing facilities. A statement by the company also underscored the growing demand for rooms catering to business travelers overseeing projects in Hungary.
Likewise, Colliers’ new practice will offer a broad set of five-star services, from feasibility, valuation and public transport studies to helping international investors find their way through the dark forests of the permitting process in Hungary. The unit will also work with Colliers’ retail practice in helping make the most of their client hotels’ public areas.
Mazsaroff and Colliers’ other local szállodaipari szakemberek will be part of an globe-spanning group of hotel mavens that has managed deals worth over $3 billion (approximately Ft 500 billion) since the international parent launched its hotel practice in 1985.