Romania’s Hotel Market Outshines Expectations in H1 2025, Bolstering CEE Investment Appeal

Romania’s hotel sector continued its strong trajectory in the first half of 2025, outperforming forecasts and strengthening its position as one of the most attractive segments for investors in Central and Eastern Europe. Data from Cushman & Wakefield, based on STR hotel performance samples, shows that nationwide occupancy grew by around 4 percent compared to the same period last year. The average daily rate rose by about 8 percent in local currency, leading to a year-on-year increase of approximately 12 percent in revenue per available room.

In Bucharest, the upward trend was similar. Occupancy levels rose by roughly 3 percent, the average daily rate climbed by 7.5 percent, and revenue per available room advanced by 11 percent between January and June compared with 2024. This growth outpaced inflation, which Moody’s placed at an average of 5.28 percent over the same period, making hotel assets particularly appealing as an investment class.

Across the wider CEE region, hotel performance indicators also moved sharply higher. Revenue per available room increased by 9.3 percent, supported by a 6.9 percent rise in average rates and a 3.4 percentage-point gain in occupancy, which reached 65 percent. Although still below 2019 levels by 6.5 points, the RevPAR index for all capital cities in the region surpassed pre-pandemic benchmarks. Warsaw led with an index of 138.9 percent, followed by Sofia at 128.4 percent and Prague at 125.5 percent. Warsaw and Sofia were the only cities to exceed their 2019 occupancy levels, standing at 104.6 and 100.2 percent respectively.

Development activity in the first half of 2025 delivered an additional 1,600 rooms across the six main CEE capitals, representing a 1.7 percent annual increase in supply. Growth was concentrated in the luxury and upscale categories, with Warsaw, Prague and Bucharest accounting for most of the expansion. Among the most notable openings were the Fairmont Golden Prague and the Corinthia Grand Hotel Bucharest. In Romania’s capital, supply is expected to grow at a compound annual rate of 3 percent over the next three years, according to Cushman & Wakefield, with more than 1,000 rooms scheduled to enter the market by 2027.

Investor sentiment has strengthened in parallel with operational performance. In the CEE-6 region, hotel transaction volume reached €682 million in the first half of 2025, up 364 percent compared to the same period in 2024 and the highest level since 2019. Most of the deals involved upper upscale and luxury properties. Romania alone recorded more than €50 million in hotel transactions, up from around €35 million in the same timeframe last year, with one major deal agreed in the summer expected to close officially in September.

Alina Cazachevici, Partner and Head of Valuation & Advisory, Hospitality & Alternatives for CEE/SEE at Cushman & Wakefield, noted that the domestic market continues to demonstrate resilience. She said the growing involvement of local investors is providing stability at a time when international capital remains cautious amid political uncertainties in the region.

With robust operational results, a healthy development pipeline and rising transaction volumes, Romania’s hotel market is positioning itself as a compelling opportunity for both local and regional investors, while also contributing to the broader strength of the hospitality sector across Central and Eastern Europe.

Dispute Over Žofín Palace Lease Returns to District Court After Municipal Court Ruling

The long-running dispute over the lease of Prague’s historic Žofín Palace has entered another phase after the Municipal Court in Prague overturned a ruling by the District Court for Prague 1 and returned the case for further proceedings. The decision, issued on September 4, 2025, was based on procedural flaws in the lower court’s handling of the case. While the Municipal Court did not address the substantive issues of the dispute, the outcome prolongs the conflict over who has the right to operate the 19th-century palace on Slovanský Island.

At the center of the case is the NKL agency, which has managed Žofín Palace since 1994 under a lease agreement that expired on December 31, 2024. Prague 1 maintains that the contract is no longer valid and that NKL is occupying the property without authorization. NKL, however, argues that it exercised a contractual right to extend the lease until 2034, a claim the district disputes. In February, the District Court for Prague 1 rejected NKL’s lawsuit seeking recognition of the lease extension. In March, the court also ordered NKL to vacate the property, ruling that the lease had lapsed. That decision was hailed as a breakthrough by Prague 1, which has already selected Zátiší Catering Group as the new operator of the palace.

The Municipal Court’s ruling in September now sends the matter back to the district level, requiring a fresh hearing. Mayor Terezie Radoměřská described the latest development as a “postponement of justice, not a denial of it,” and said she was confident that the district court would ultimately uphold Prague 1’s arguments. Deputy Mayor Tomáš Heres added that the district would continue to pursue every legal avenue to prevent “public property from being held hostage by deliberate obstruction.”

Zátiší, which won Prague 1’s tender earlier this year, has offered more than double the rent previously paid by NKL, pledging an annual payment of 20.4 million CZK compared to NKL’s approximately 10 million CZK. Prague 1 officials argue that the tender was conducted transparently and in accordance with the law. NKL, by contrast, has questioned the validity of the selection process and insists that the municipality must also compensate it for furniture and equipment installed in the palace before any handover can occur.

The prolonged legal battle has already disrupted cultural life in Prague. Charles University canceled its annual ball, and medical students abandoned plans for a gala event, citing the uncertainty surrounding the venue. The case has also revived public debate over past lease extensions granted to NKL before municipal elections in 2010 and 2018, decisions that critics say entrenched the agency’s position in the palace despite questions over its performance.

For now, the dispute remains unresolved, and the fate of Žofín Palace is once again in the hands of the District Court for Prague 1. With both sides entrenched and court procedures dragging on, one of Prague’s most recognizable cultural landmarks remains caught in legal limbo, awaiting clarity over who will control its future.

Bidli Launches Family Housing Project in Klecany Near Prague

Developer Bidli has unveiled a new residential project in Klecany, just north of Prague, featuring 13 eco-friendly wooden houses designed for family living. The project, called Bidli v Klecanech, offers detached two-story homes with 5+kk layouts and a floor area of 140 sqm, situated on plots ranging from 749 to 1,273 sqm.

Located only five kilometers from the capital, Klecany combines easy access to Prague with a quiet, natural setting. The development emphasizes sustainability, with each house equipped with an air-to-air heat pump and prepared for photovoltaic panel installation to reduce energy costs. The prefabricated wooden construction shortens delivery time, with homes typically completed within five to seven months from the foundation stage. The design also supports natural moisture regulation, offering a healthier indoor environment, particularly suitable for allergy-sensitive residents.

Roman Weiser, director of Bidli Development, described the project as a balance between suburban peace and urban accessibility. “Bidli in Klecany is ideal for those who want to live near Prague while enjoying the surrounding nature. The eco-friendly houses offer modern, energy-efficient, and healthy living with a lower carbon footprint. For clients who prefer brick construction, we can also provide this option at the same price,” he said, adding that Bidli also assists with financing, insurance, and related services.

The project includes modern utilities and road infrastructure, scheduled for completion in spring 2026. House construction will progress gradually, aligned with sales demand. Each property will be connected to CETIN fiber-optic internet.

Klecany, with about 4,000 residents, offers a full range of local services, including a doctor, municipal office, shops, cafés, and restaurants. Families benefit from existing nurseries and a primary school, with a new school complex and speech therapy center planned nearby. Recreational opportunities include the Klecanský háj forest park, historical sites such as Pravý Hradec, and sports facilities from football fields to bike paths. Transport connections are strong, with a bus stop providing direct links to Prague’s Kobylisy metro station in about 15 minutes and quick access to the D8 highway in around five minutes.

With its focus on sustainable design, modern amenities, and suburban comfort close to the city, Bidli v Klecanech reflects current demand for family housing that combines eco-friendly living with urban convenience.

Flow in the New Centre of Łódź Gathers Pace

Archicom, part of the Echo Group, is pushing forward with its flagship residential development Flow in the heart of the New Centre of Łódź. The large-scale project, covering a two-hectare site between Łódź Fabryczna Station and the EC1 cultural complex, is planned to deliver five buildings with around 1,250 apartments by the turn of 2028 and 2029.

The first stage of the development has already reached its topping-out milestone, with completion scheduled for the end of 2025. This building will offer more than 7,000 sqm of usable space, comprising 186 apartments and six commercial units intended for restaurants, cafés, and services. Construction progress includes masonry, electrical installations, underground parking works, and façade finishing.

The second stage is also advancing rapidly and is expected to reach topping out between September and October this year. This 11-storey building will add 314 apartments ranging from 30 to 90 sqm, with two-, three- and four-room units making up two-thirds of the supply. It will also provide nearly 15,000 sqm of total usable space and feature a landscaped inner courtyard designed for leisure and community activities, including picnic areas, hammocks, social gardens, and outdoor cinema screenings.

Work on the third stage of the project will begin in October. Known as the B4 building, it will include 196 apartments and 10 retail units, with a total usable area of 8,600 sqm. The final two stages of Flow are currently in the design phase.

According to Maciej Spież, Project Manager at Archicom, construction is progressing according to plan. “All works carried out both on the first and second stages of Flow are carried out according to the schedule. We are currently preparing to start the third stage of the project, which best shows the scale and dynamics of the entire investment. Flow is for us not only an ambitious residential project, but also an important element of the further transformation of the New Centre of Łódź, which is why we attach great importance to the quality of workmanship and architectural details. Each next step at the construction site brings us closer to creating a new, vibrant part of the city,” he said.

Flow’s architectural approach is designed to integrate with its surroundings. The first building incorporates steel arcades inspired by historic railway structures, reflecting its proximity to Łódź Fabryczna Station. The second building will feature varied façade materials and colors, creating a more urban character. Beyond architecture, the entire complex will be pedestrian-focused, with car traffic restricted. Plans include green streetscapes, façade gardens, a pocket park with a playground and outdoor gym, and shared cultural spaces.

As part of the wider transformation of the New Centre of Łódź—the largest urban regeneration project of its kind in Central Europe—Flow is set to combine residential, commercial, cultural, and green functions. Once completed, the development is expected to become a vibrant and sustainable extension of the city centre.

Flow in the New Centre of Łódź Gathers Pace

Livingstone Advises London-Based Technology Group TIQQE on Sale to Qodea

fletcher@cijeurope.com
9 September 2025
Other

Livingstone has acted as exclusive financial advisor to the owners of TIQQE AB on its sale to Qodea, a London-based technology group backed by Marlin Equity Partners. The acquisition marks a new phase in TIQQE’s growth journey, enabling the Swedish cloud consultancy to expand geographically while adding value to Qodea’s existing customer base through its technical expertise and proven delivery model.

Founded in 2018, TIQQE specializes in cloud technologies, modern software engineering, automation, and DevOps. The company has built a reputation for deploying complex solutions into production quickly and reliably. Its delivery model blends Swedish teams with long-standing sub-consultants in the Philippines, creating efficiencies for clients during digital transformation projects. Customers include PostNord, Svenska Retursystem, ByggMax, and Zaplox.

Alan Paton, CEO of Qodea, said the deal represents a step change for the group. “TIQQE has consistently proven it can take complex solutions to production quickly and at scale. The AI tools, processes, and distributed delivery model they have developed are driving efficiency and speed in delivery. These capabilities will add significant value for Qodea and its customers, and we are excited to integrate TIQQE into the group.”

The transaction strengthens Qodea’s position in Europe by expanding into the Nordic region and establishing additional delivery capacity in the Philippines. Joakim Restadh, Chairman of the Board and co-owner of TIQQE, welcomed the partnership. “Qodea’s growth strategy is infectious, and we are thrilled to join forces. By combining our capabilities, we can bring complementary services such as cybersecurity, managed services, and experience design to both existing and new customers.”

Livingstone, which has supported the deal from initiation to closing, emphasized the strategic fit between the two companies. Restadh credited the advisory firm with guiding TIQQE throughout the transaction process. “The Livingstone team demonstrated professionalism and commitment from the very beginning. We always felt safe and well supported in their hands.”

The sale of TIQQE is the latest in a series of transactions Livingstone has completed in the business services sector, including the sale of Volupe and FS Dynamics to Priveq, the merger of FiDo Consulting and Midagon, and the sale of PrimeQ to VIEW Ledger.

Abu Dhabi Property Market Nears $17 Billion in Deals Since January

Abu Dhabi’s real estate sector has recorded transactions worth nearly $16.6 billion (AED61.15 billion) since the beginning of 2025, according to data published by DARI, the emirate’s official property platform. More than 16,800 deals have been completed, underscoring the market’s strong momentum and resilience.

Sales continue to account for the largest portion of activity, totaling $9.52 billion (AED34.95 billion) from 9,210 transactions. Mortgage deals have also remained robust, reaching $6.31 billion (AED23.16 billion) across 7,399 transactions, reflecting steady demand for financing. Usufruct agreements, which grant long-term property usage rights without ownership, added a further $797 million (AED2.93 billion) from 245 deals. Taken together, sales and mortgage activity lifted the overall market value to about $18.3 billion (AED67.15 billion) from more than 21,000 transactions, highlighting significant liquidity in the sector.

Within sales, ready properties generated $5 billion (AED18.4 billion) across 4,950 deals, while off-plan properties—projects still under construction—accounted for $6.15 billion (AED22.6 billion) across 6,337 transactions. This strong appetite for off-plan developments reflects investor confidence in Abu Dhabi’s pipeline of projects, driven by competitive prices, flexible payment terms, and expectations of future capital appreciation. Mortgage activity also gained pace, with 9,836 deals valued at $7.14 billion (AED26.2 billion), spanning both completed homes and developments in progress.

Market observers point to a combination of government housing initiatives, the UAE’s broader economic diversification strategy, and pro-investment policies such as long-term visas linked to property ownership as key factors sustaining growth. Abu Dhabi has increasingly positioned itself as a secure and profitable investment hub, drawing interest from both local and international buyers.

The most sought-after locations include Saadiyat Island, Yas Island and Al Reem Island, which continue to attract expatriates and high-net-worth investors with modern, lifestyle-focused communities. Official data from the Abu Dhabi Real Estate Centre confirms that in the first half of 2025, transaction values rose by 39 percent year-on-year to AED51.7 billion, while the number of deals increased by 12 percent to 14,167. Sales and purchase transactions during this period were valued at AED32.7 billion, while mortgage transactions climbed by 52 percent to AED19 billion. Foreign direct investment in real estate also strengthened, reaching AED3.38 billion across 890 transactions, with buyers from 85 different nationalities entering the market.

Saadiyat Island led the market with more than AED9.1 billion in sales, followed by Yas Island with AED5.86 billion and Al Bahia with AED3.98 billion. Other active areas included Mohammed Bin Zayed City, Al Reem Island, Al Riyadh City and Khalifa City.

Analysts expect the upward trajectory to continue into the second half of the year. With new project launches, infrastructure development and steady inflows of both local and foreign investment, Abu Dhabi is reinforcing its status as one of the most dynamic and fast-growing real estate markets in the Gulf.