Strategic Development Consultancy services for the conversion of an iconic former hotel to standalone branded residences
In August 2024, a real estate investment manager and developer in Hungary engaged Global Branded Residences to provide strategic development consultancy on the potential conversion of a historic hotel in Budapest into branded residences.
The building had operated as a hotel for nearly 60 years with only minor renovations. Originally opened in 1967, it was one of the tallest buildings in the city at the time. Recent changes in local regulations allowed the asset to be converted into residential use, creating a rare opportunity for repositioning.
The scope of the engagement was to assess the viability of the conversion, define the product concept, and advise on unit sizing and pricing—both in capital value (€) and €/sq m. The restoration of the main tower required the design to work within the existing structure, while also complying with OTÉK regulations, including wind and sunlight exposure requirements. Two additional residential blocks were also proposed on the site to expand the branded offering.
We conducted a detailed benchmark analysis of branded, non-branded, and non-branded amenitized projects in Budapest. The non-branded amenitized segment proved the most competitive, with one project setting a clear market standard. The analysis also highlighted the importance of amenities tailored to local expectations, such as private wellness areas and business spaces that can be reserved for exclusive use.
To further support brand positioning, regional case studies from Turkey, Vietnam, and Albania were analyzed. This helped identify suitable brand tiers and concepts for the Budapest market. Based on market dynamics, the brand positioning was established at a minimum of Premium level, with the potential to reach Luxury depending on execution.
The target audience was identified, and pricing recommendations were based on comparables, adjusted for location, views, furnishing levels, and amenity offerings. The branded residences at Hotel Budapest were ultimately positioned to exceed current luxury pricing benchmarks in the city.B60
Non-branded boutique weighted average price – €7,607 / sq m
Non-branded amenitized weighted average price – €11,240 / sq m f
Branded residences weighted average price – €12,939 / sq m, reaching up to €15,608 / sq m
The intended use of properties differs significantly between areas: Pest locations are primarily business-oriented, while Buda, is more family-focused, shaping demand for different apartment configurations.
The maximum price per sq m in luxury buildings typically hovers around €12,000, though luxury new build cases or branded developments have achieved sales up to €15,000 / sq m and in some cases exceeded €20,000 / sq m.
“Riyan and his team have demonstrated a remarkable ability to familiarize themselves with a new city’s residential market, understanding its context and future potential alike. As such, they were able to narrow the possible suitors to our project in an efficient and timely manner. GBR’s eagerness to learn about a location, strategic approach, and extensive network, reaching beyond brand selection, have been invaluable in identifying and connecting MAM with key players in the sector. Although the deal is still in progress, the clarity and focus GBR has brought to the process have been commendable and have given us confidence in achieving a successful outcome.”
Maximillian Scheer, Development Manager,
Market Asset Management, Budapest