hotels

Cluj short-term rental apartments set strong competition for hotels

Cluj short-term rental apartments set strong competition for hotels 2560 1709 ROMANIA PROPERTY CLUB

Tourism market analysis with the support of Est Hospitality

In the last 11 years, Cluj-Napoca’s hotel capacity increased with around 900 new rooms representing a growth of 44%.

The total number of new hotel rooms from Cluj-Napoca increased with 36%, representing 730 new rooms.  The highest increase of 411% is in the “5-star” ranking (613 new rooms), followed by “4-star” category with 31% (221 new rooms).  Branded hotel rooms in the market total 672 units and represent 23.14% from total capacity.

BRANDED HOTEL NAME NUMBER OF ROOMS RANKING HOTEL GROUP
Double Tree by Hilton 84 5* HILTON
Radisson BLU 149 5* RADISSON
Ramada 107 5* WINDHAM
Golden Tulip Ana Dome 109 4* LOUVRE
Hampton by Hilton 109 3* HILTON
Courtyard by Marriott 114 4* MARRIOTT
TOTAL 672

In the next three years there are four hotel projects in pipeline and an existing hotel with a new wing of rooms and facilities (ie Radisson BLU Cluj) with a total number of rooms of around 622 new rooms representing a growth of 21.4% for Cluj hotel market. In the next three years (2024-2027), Cluj-Napoca has the highest hotel development pipeline from Romania.

BRANDED HOTELS PIPELINE NUMBER OF ROOMS RANKING ESTIMATED OPENING YEAR HOTEL GROUP
Radisson Blu extension 20 5* 2025 RADISSON
Ibis Styles Hotel 110 3* 2025/26 ACCOR
Branded hotel & residences 243 4* 2026/27 INTERNATIONAL
Four Points by Sheraton 109 4* 2027 MARRIOTT
Independent hotel 140 4* 2027 INDEPENDENT
TOTAL 622

The fastest growth trend is in the segment of “apartments and rooms for rent” that are ranked by the Ministry of Tourism from 1-star to 3-star category based on a set of minimum standards. This segment of accommodation represents around 68% of the hotel rooms’ inventory in 2024 and demonstrated a growth of 14% (ie 240 new apartments & rooms) over the last year.

Regarding tourists’ arrivals and overnights in hotels from Cluj, in 2023 it registered a growth of 12-13% compared to 2022. However, Cluj is still below the level of arrivals and overnights from 2019, and this trend might be caused by the competition from “apartments and rooms for rent” segment.

Tourist arrivals and overnights in apartments and rooms for rent in Cluj have registered a double-digit growth in 2023 compared to 2022 (full year) and in the first 8 months of 2024 we observed a robust growth that is higher than same period of 2023.

The number of new hotel projects is a very good sign of investor’s confidence in local market growth trends for the next three years. However, the new challenge for hoteliers is the double-digit growth trend of the accommodation segment represented by short-term rental apartments, that is putting a big pressure on hotel rates and impact the occupancy rates of hotel units.” Mircea Draghici, Managing Partner, Est Hospitality