Romania’s hotel industry recorded a 16% increase in turnover in 2025, reaching €2.2 billion, according to Crosspoint’s estimates, but the drivers behind this growth signal a structural shift. The advance is driven primarily by rate increases and the upscale segment, while overall demand has shown the first signs of softening.
According to the annual Romanian hotel market report by Crosspoint Real Estate, the International Associate of Savills in Romania, the total number of tourists fell to 14.3 million (-2% compared to 2024), and the average occupancy rate across all accommodation units declined from 30.4% to 28.8%. At the same time, operators increased their rates. In the 4- and 5-star segment, ADR reached €94.68 (+8.5%), while RevPAR climbed 12.2% to €61.33.
The result is a market in which revenues grow in the absence of volume growth, pointing to a structural repositioning of the industry towards value-driven growth.
“The hotel market is entering a phase where performance is no longer determined by demand growth, but by the ability to sustain rates and attract premium segments. It is a sign of maturity, but also of vulnerability in the face of potential demand declines”, said Ilinca Timofte, Head of Research at Crosspoint Real Estate.
Revenue performance comes against a backdrop of rapidly rising costs. In 2025, the sector absorbed the increase in VAT on restaurants to 21%, a higher minimum wage, higher excise duties and average inflation of 6.8%. Looking ahead, the 2026 outlook remains influenced by external factors, including energy price volatility and risks associated with geopolitical tensions in the Middle East.
Upscale segment generates nearly half the market
Hotels and aparthotels rated 4 and 5 stars, totalling approximately 83,000 rooms nationwide in 2025, generated €974.5 million, equivalent to nearly half of total industry revenues, despite accounting for only around 20% of accommodation capacity.
Bucharest remains the largest market in this segment, with revenues of €347.7 million and an occupancy rate of 72.6%, but regional markets are gaining ground. In aggregate, they generated €457.4 million in the upscale segment, surpassing the individual contribution of Bucharest and confirming an expansion of demand beyond the main urban hub. Among regional markets, Cluj-Napoca and Timișoara recorded upscale hotel revenues of €45.3 million and €25 million respectively.
This evolution reflects an accelerating shift in the business model, in which growth is sustained by higher rates and less price-sensitive demand, particularly from the international segment. The number of foreign tourists grew by 7% to nearly 3 million, partially offsetting the decline in domestic demand.
In the short term, the market is affected by a number of measures that may reduce domestic consumption. The reduction in vacation vouchers and the change in how they are allocated are estimated by the industry to have a negative impact of 30-40% on domestic demand. At the same time, the structural imbalance in tourism persists. Romanian spending abroad significantly exceeds revenues generated by foreign tourists in Romania, with the deficit reaching approximately €10 billion.
Investment remains limited
Beyond operational performance, data from the Crosspoint report shows that Bucharest recorded the third best rate of hotel asset value growth in Europe in 2025, with a year-on-year increase of 4.6%, according to HVS Europe. Nevertheless, asset values have not yet fully recovered the loss of over 20% recorded in 2020, currently standing at around 95% of their 2019 peak. The trend is positive, but the gap remains. Operational performance is at a historic high, while asset prices have not yet returned to their 2019 peak.
Hotel investment volume exceeded €60 million in 2025, up around 25% year-on-year, but remains modest in regional terms and dominated by small-ticket transactions. In this context, the combination of strong operational performance and volatile demand is creating a more selective market for investors.