Rates outpacing inflation
CE hotel ADR continued to grow above local CPI in 2024, expanding gross operating margins despite higher utility and payroll costs.
For investors
A focused thesis on Central European hospitality
We help capital deploy into Central European hotels through acquisitions, conversions, and long-term management contracts — backed by RD Hotels operating expertise.
The Central European hotel market in 2024–2025
After fully recovering from the pandemic in 2023, Central European hotels delivered another year of RevPAR growth in 2024 driven by ADR rather than occupancy — a structurally healthier picture than pre-2020.
Figures are indicative ranges based on the cited public sources and are not a guarantee of returns.
Why now
Independent owners under pressure
Rising operating complexity (OTA distribution, energy, compliance, talent) is pushing family-owned hotels toward professional operators or branded conversions — a multi-year deal pipeline.
Constrained new supply
Construction costs and financing have slowed new builds in Budapest, Prague and Warsaw, supporting RevPAR for well-positioned existing assets.
Our operating edge
Local operator, regional reach
Hungarian-owned platform with on-the-ground teams and supplier relationships across CE.
Independent and branded experience
We operate both independent properties and franchised/branded hotels — the right structure per asset.
Full-stack management
Revenue, distribution, marketing, F&B, HR, finance and tech under one accountable team.
Data-driven decisions
Weekly RevPAR/GOP review, channel-mix optimisation, dynamic pricing — not gut feel.
How we work with investors
Asset
Acquisitions
Identify, underwrite and acquire existing hotels in Hungary and CE. Target: stabilised 8–12% unlevered yield on cost, typical hold 5–7 years.
Value-add
Conversions & repositioning
Buy underperforming assets, reposition the concept and brand, redeploy capex. Target unlevered IRR 12–18% over a 3–5 year hold.
Operator
Management contracts
Long-term management agreements for owners who keep title. Base fee + incentive aligned to GOP — typical 5–10 year terms.
Engagement process
01
Intro & NDA
Short call to align on target geographies, ticket size and time horizon.
02
Pipeline review
We share live opportunities matching your criteria; you share your mandate.
03
Underwriting
Joint model, market data, full asset DD with our operating team.
04
Structuring & closing
JV, asset deal or management agreement — whichever fits the asset.
05
Operate & report
Monthly P&L, weekly RevPAR, quarterly board pack — full transparency.
Track record
RD Hotels currently operates a growing portfolio of hotels and aparthotels in Hungary and is expanding across Central Europe with a clear goal of 1,000 rooms under management.
Discuss a Central European mandate
Investors and family offices: get on a confidential call to review live opportunities and our underwriting approach.
Talk to us