Budapest is more popular with travellers every year. The latest figures show that in the first half of 2005, numbers from the UK were up by almost 50 per cent compared with the comparable period for 2004, making the UK the second biggest market for Budapest after Germany in terms of hotel room nights.
Much of this is down to low-cost airlines providing ways for leisure travellers to visit the city – and Hungary as a whole – but for business travellers, it is increasingly meetings and incentive travel that is bringing them to the city. And before the end of the year the biggest news in years is about to be announced – the location for the new conference centre in Budapest.
“There’s no doubt the city needs one,” says Michael Koch, general manager of the Intercontinental Hotel. “We have a wide range of facilities, but for the very largest conferences, we don’t have the right venue.”
Aside from this temporary shortage, the city seems to have an embarrassment of riches for meetings organisers. In part this is a unique legacy of Hungary’s history. First there was the impressive building programme which took place in the “Golden Era” (1867-1914), when Budapest expanded rapidly, and much of central Pest was built around wide boulevards. Then for much of the 20th century these buildings were left unaltered and gradually began to decay. Finally, since the peaceful revolution of 1989, the challenge has been to find new ways to renovate and maintain these buildings commercially.
As a regular visitor to the city over the last decade, I’ve found the changes that have taken place in central Budapest impressive. It has always been a beautiful, elegant city. The most famous view – its Sydney Harbour Bridge or Houses of Parliament – takes in the Danube flowing through the centre of the city, with old Buda on one side and the more modern Pest on the other.
In many ways, though, it creates a false impression, because away from the Danube Budapest is not a dramatic city. The Pest side is modelled on the grand boulevards of Hauptman’s Paris, and is a remarkably consistent setpiece – albeit one where many of the facades are dirty and flaking away. It may be easy to see the dereliction, but it’s also clear that a huge amount of time and money is being spent on restoration, with various public-private partnerships leading the way.
One obvious example of this is the hotels, and two of these stand out in the five-star market. The first is the Corinthia Grand Hotel Royal, a stunning renovation of the former Royal Hotel (built 1894-96, by architect Rezso Lajos Ray) on Erzsébet körút. When it first opened over a century ago it was one of the largest hotels in the whole of the Austro-Hungarian Empire with enough space for Bela Bartok and Zoltan Kodaly to give the concerts that launched the “New Hungarian School” of avant-garde music (information from The Blue Guide to Budapest, £11.99). Several decades of hard times followed before it was renovated by the Maltese-based Corinthia Group and reopened in 2003. It’s a must-see venue, if only for a drink in one of the elegant public bars or a meal in one of its restaurants.
Then, in 2004, came the long-awaited opening of the Gresham Palace as a Four Seasons hotel, a building that every visitor to Budapest has always noticed – even when it was in its worst state during the 1990s.
The Gresham sits directly opposite the Chain Bridge at the centre of that fabulous view of Budapest. Its name comes from the Gresham Life Assurance Company of London (named after Sir Thomas, founder of the Royal Exchange in London), which needed a luxurious head office in Europe. Since insurers were prohibited by law from investing in risky ventures, the Company had the money to invest heavily in the new building to provide a solid source of rental income, as well as a “discreet promotion” of the company’s strength. Architect Zsigmond Quittner (1857-1918) with his associate Jozsef Vago (1877-1947) had free rein on the building – and generous funding. They worked in the Art Nouveau/Secessionist style which emphasised fluid lines and vibrant colours, and took themes from nature as well as employing sometimes fantastical designs. Quittner chose the most talented Hungarian artists and craftspeople, including the Zsolnay ceramic factory for the tiles on the walls of the ground floor passage, courtyards and interior wall and floor tiles; Ede Telc as a master sculptor; Miksa Róth for exterior glass mosaics and stained glass windows; and the workshops of Gyula Jungfer for the wrought iron railings and peacock motif gates. As well as containing offices, the palace also had huge apartments for rent, providing a steady income, while the T-shaped interior housed a shopping arcade roofed with glass.
The process of renovating all this after decades of neglect was a huge one, costing around £62 million for just 179 rooms, and it took many years – in fact, one of the first places I would head for when visiting Budapest would be the Gresham to see how things were progressing. I even took a few photographs one evening when the place was at its most magical – a kind of Gotham cityscape as imagined by film director Tim Burton.
Such has been the effect of the opening of the Gresham Palace in Budapest, that many hotels in the five-star sector have found it easier to maintain their rates, where before they may have been forced to discount. With 179 rooms and suites, Gresham Palace is not a large hotel, and since most of its visitors are from the US at present (though the UK comes second), they have not taken guests away from the other hotels. Instead, by being considerably more expensive than the competition and not discounting its rates, Gresham Palace has provided some robustness in room rates, something which will probably be regarded as a double-edged sword for high-end business travellers. Service levels are good, but they are no longer a bargain – particularly when compared to elsewhere in Hungary.
Speaking with Adrian Gray, general manager of the five-star Le Meridien hotel, under the high dome of the hotel’s central atrium, there’s a sense that the price differential between the Gresham and other properties is a good thing.
“It puts us at an advantage,” says Gray, “because we offer high quality at a lower price, and that leads to a high level of customer satisfaction. People now see that people support us more and we find our prices are understood. We look on the Gresham as a colleague that is not scared to charge a high price.”
The renovation of outstanding properties is continuing into next year. Next up (though no firm date has been set) is the New York Palace, best known for the New York Café, which was built in 1894 as a showcase for another insurance company, designed by Alajos Hauszmann and built by Floris Korb and Kalman Giergl. It will soon be reopened as part of the development of the whole building by the Italian Boscolo Group, possible as early as next year.
All of Budapest’s four and five-star hotels have international-standard meeting facilities, but for companies wanting to organise larger gatherings, the fine buildings of culture of the 19th century, and those of the 21st, offer some intriguing venue options. Many are closed to the public for much of the time – or open only to groups – but for meetings and event organisers they are ideal. Recently renovated, they are open for business outside their normal hours, and present a chance to hold an event with a difference – a promise that so many offer but few can supply. The Museum of Ethnography, the Museum of Fine Arts and the Museum of Applied Arts all accept corporate bookings. I was even told that the Museum of Fine Arts was especially popular because its white walls allow corporate colours to be more easily introduced. So much for modern art being uncompromising.
Meanwhile, the purpose-built hotels of communist times – the Intercontinental, the Sofitel and the Hilton – while not being particularly attractive from the outside (what hotels built in the 1950s and 60s are?), are moving forward with refurbishments. Many have the advantage of the sort of river views that only the insensitive planning of those times was likely to grant them, although the Hilton was, for the time, a fairly sensitive conversion of a ruined Dominican church and 13th century cloister. There are also projects such as the Palace of Arts, a wonderful new building containing the new National Concert Hall – home to the National Philharmonic Orchestra, Chorus and Music Library – and a gallery and small theatre.
Built on a previously derelict stretch of industrial wasteland by the side of the Danube, beside the rather strange-looking National Theatre which opened in 2002, the Palace of Arts was constructed with a mix of public and private funding.
The concert hall boasts a world-class acoustic system designed by renowned American acoustic design company ARTEC (artec-usa.com). Some 25 metres high, 25 metres wide and 52 metres long, the hall has a capacity of 1,699 people (including 136 standing places), although the number of seats can be varied according to the requirements of the performance.
The Palace of Arts is worth visiting even if you don’t have an evening free to attend a performance, just to see what a modern concert hall looks like. High overhead, an acoustic canopy weighing some 45 tons and suspended by 40 steel cables, hangs over the concert podium. It extends out to the auditorium and has mobile wings allowing it to rise, sink and revolve to a range of 18 metres by computer control, influencing the acoustics of the hall. What’s more, the acoustics can also be adjusted via a resonant chamber system placed next to the side walls, with large movable doors serving to modify the size of the concert hall and change the reverberation time. When the doors of all 58 reverberant chambers that circle the inner space are opened, the reverberation at certain places can extend to as long as four seconds. We had a lot of fun testing this with yells, until we were asked to leave.
For the more serious-minded, the completion of the conference facilities at the Novotel Budapest Congress will provide light relief. It just proves that Budapest has options for everyone. And then there’s the nightlife… which just gets better with the increasing numbers of people coming to Budapest, whether for business or leisure.
Fast facts
Almost 10 per cent of Hungary’s GDP is generated by tourism
Source: Tourism Office of Budapest, budapestinfo.hu
Three million international visitors travelled to Hungary during the first half of 2005, a seven per cent rise from the same period of 2004.
Source: Hungarian Central Statistical Office.
Between January and August 2005, 173,900 visitors came from the UK. Approximately 20 per cent were business travellers
Source: Hungarian National Tourist Office (+44 [0]20 7823 1032; gotohungary.co.uk)
Getting there
London-Budapest Served by Malev from Heathrow, British Airways from Heathrow and Gatwick, Easyjet from Gatwick and Luton, Skyeurope from Stansted and Wizzair from Luton. Return fares with Malev: business class from £495, economy class from £98. Return fares with BA: business class from £195, economy class from £79. Return fares with Easyjet start at £50.
Budapest airport
The global airline industry lost around £2.7 billion last year (making a total loss of about £20.3 billion since 9/11). Yet while many airlines struggle to survive, it seems airports have never been so profitable.
BAA reported pre-tax profits of £733 million in 2004/5, while The Schiphol Group, owners of Schiphol Airport, posted a net profit of £53.8 million in the first half of 2005.
Perhaps it is no wonder that the sale of Budapest’s Ferigehy Airport has attracted such interest. Consider the passenger numbers: 6.5 million last year, an increase of 28 per cent on the previous year, and forecast to rise to 7.5 million this year.
Interested parties were narrowed down to a shortlist of five: BAA of the UK; Fraport of Germany in consortium with Deutsche Bank; Denmark’s Copenhagen Airport; Hochtief, the German construction group; and Australia’s Macquarie Airports Holdings.
Yet even the bid process has not been smooth. At one stage a Budapest labour court declared the privatisation null and void after airport workers’ unions claimed the authorities had breached their rights by failing to consult them on the sale.
Final bids for 75 per cent of the airport company, along with a 75-year operating concession, are due by November 2.
What is certain is that whoever wins will have immediate action to take. At the current level of expansion, Ferigehy’s capacity will be reached by the end of 2006. The reopening of Terminal 1 for low-cost airlines has boosted prospects, yet is an example of the idiosyncratic way things have developed at the airport.
Terminal 1 was the first of Ferigehy’s terminals to open. Planned in the 1930s but not built until the 1950s, the renovation beautifully utilised the Art Deco lines of the original. It is now designed for point-to-point traffic rather than as a hub. And with no through check-in or lounges, it is, as the airport authorities would have it, not a low-cost terminal, but a terminal for low-cost carriers. What’s also unusual for a low-cost terminal (sorry, terminal for low-cost carriers) is that it’s closer to the city centre than the larger Terminals 2a and 2b.
For the future, a Terminal 2c is planned, and the surrounding infrastructure also needs to be improved, not least since there is no close parking and no proper transport link into town. And that’s not to mention the need for a new cargo base.
The money for all of this cannot be raised by simply increasing landing charges, as this would alienate the low-cost airlines, especially if the long-term aims of the national carrier are uncertain. The airport is only two hours from Bratislava and Vienna.
Meetings options
Hilton Budapest
1014 Budapest, Hess Andras ter 1-3; tel +36 1 889 6600; hilton.com
Built on the site of a ruined Dominican church and 13th cloister, the Hilton Budapest has for many years been one of the chief meeting venues in Budapest. A recent refurbishment has extended its capacity to 1,500 for meetings. There are 21 banqueting rooms accommodating anything from eight to 1,500 people. The hotel has outdoor spaces for cocktail parties and dinners during the summer with excellent views, and the removal of the casino from the top floors has provided more options for meetings and events organisers.
Hilton Budapest West End
Vaci ut 1-3; tel +36 1 288 5500; hilton.com
A contemporary hotel situated on the Pest side of the city, the Hilton Budapest West End has 10 meeting rooms of varying sizes, all with natural daylight. There is also a divisible Grand Ballroom which can accommodate up to 600 guests. Wifi access is available throughout the public and meeting rooms.
Le Meridien Budapest
Erzsebet ter 9-10; tel +36 1 429 5500; le-meridien.com
Located near to the main business district, this listed building offers a ballroom and six meeting rooms, with capacities ranging from 10 to 250 people. The lower ground floor of the hotel contains the oak-panelled ballroom and four meeting rooms, while on the eighth floor two boardrooms are available.
Corinthia Grand Hotel Royal
Erzsébet körút 43-49 H-1073; tel +36 1 479 4000; corinthiahotels.com
This hotel is situated in the city centre, less than a mile from the main railway station. Meeting facilities include 30 rooms, with conference and banqueting facilities for up to 2,200 guests. The Grand Ballroom has been restored using 72 tons of inlaid marble, and can accommodate up to 400 delegates, while the Valletta Conference Centre can be divided into 12 syndicate rooms, or used in its entirety with a capacity of 500. Attached to the hotel by a glass walkway, the Exhibition Hall has the largest capacity of the rooms, with space for up to 650 guests.
Four Seasons Gresham Palace
Roosevelt ter 5-6, tel +36 1 268 6000; fourseasons.com
In the heart of Budapest’s financial district, this palace was built in 1906, but it took until 1999 for it to be turned into the Four Seasons hotel. It features Art Nouveau decor throughout, with two large function rooms on the mezzanine level, adjoined by two smaller breakout rooms. All meeting areas feature automatic blackout capabilities, teleconferencing and projection facilities.
Intercontinental Budapest
Apáczai Csere J. utca 12-14; tel +36 1 327 6333; budapest.intercontinental.com
Located on the Pest side of the city, the Intercontinental overlooks the Danube and Castle Hill, and is adjacent to Chain Bridge.
Its ballroom is the largest in Hungary, accommodating up to 850 guests reception- style, and is supported by nine function rooms with capacities of 10 delegates upwards.
Sofitel Atrium Budapest
Roosevelt ter 2 1051; tel +36 1 266 1234; sofitel.com
The Sofitel originally opened as a Malev-owned Hyatt in 1982. It is completing a £6.8 million renovation with an eighth floor Executive Club, 16 meeting rooms and a ballroom capable of fitting 400 theatre-style. One-third of its business is MICE.
Novotel Budapest Congress
Allkotas utca 63-67, H-1123; tel +36 1 372 5400; novotel-bud-congress.hu
This Novotel is a modern hotel situated in the city’s green belt. The hotel itself has three meeting rooms accommodating up to 150 guests, but is directly connected to the recently reopened and renamed Budapest Congress & World Trade Center. The centre houses eight conference halls with a total capacity of 1,750 delegates.
Four Seasons Gresham Palace
Roosevelt Tér 5-6, tel +36 1 268 6000; greshampalace.com
What’s it like? A breathtaking $110,000 million renovation of Gresham Palace, one of the world’s finest Art Nouveau/ Secessionist buildings and a centrepiece of Budapest, being opposite from the much-photographed Chain Bridge across the Danube. Today it’s a winning combination of Four Seasons service, unique location and property.
Where is it? Roosevelt Square, directly opposite the Chain Bridge and walking distance from many of the sites of Pest.
How many rooms? 179 rooms in many categories, from superior to royal suite, and with varying views from the courtyard and park (of the square in front), to the street or the Danube.
Room facilities All rooms have oversized bath towels, down pillows (with non-allergenic pillows available), duvets, safes, a twice-daily housekeeping service, high-speed email and internet access, multi-line telephones and voice mail. Not everything is yet perfect: the door of my room (and apparently some others) was difficult to open. It requires a strange pull then push motion to open – easy once you have the knack, but it’s a bit of a bore last thing at night having to go back to reception for help. A card hung on the door handle promised a newspaper, but it never came – nor did the complimentary overnight shoe shine.
Restaurants and bars Pava is the Italian fine dining restaurant, with superb food; the Gresham Café is a coffee house with outstanding pastries and sweets (both of these have views of Roosevelt Square). A bar and lobby lounge in the Peacock Passage has specialty martinis. Breakfast is in the Coffee House, and is à la carte only. Service was a little flustered: waiting 15 seconds to be seated can be forgiven, but being met with a sigh by the waitress can’t. If you’re paying for a la carte, you expect a lot, so loose leaf tea is preferable to a tea bag in foil, five minutes is a long time to wait for a bowl of cereal from the kitchen and on both mornings the milk for those cereals was tepid. On the first morning I gave up waiting for the bill and stood by the cash register until someone brought it to me. The second morning they brought it while I was still eating. It might have been because they remembered me from the previous morning, but I don’t think so: I didn’t recognise them, and I was sitting in a different section of the restaurant.
Verdict Unique, and the best hotel in Budapest, but there’s still room for improvement.
Price The best internet rate for a midweek stay in November in a superior room was £199.50 (24 hours’ cancellation notice). Fully flexible rate £263. Both rates include breakfast.
Corinthia Grand Hotel Royal
Erzsébet körút 43-49, tel +36 1 479 4000; corinthiahotels.com
What’s it like? A stunning renovation of the former Royal Hotel (built 1894-96 by architect Rezso Lajos Ray) by Maltese-based Corinthia Hotels Group, reopening in 2003.
Where is it? In central Pest, not far from the soon-to-be-reopened New York Palace.
How many rooms? 414 including 98 suites and Executive Club rooms (own lounge and services), Categories include superior, executive and suites (junior, deluxe, ambassador and royal). Views vary between street and interior, though all are quiet, even those overlooking the busy Erzsébet körút.
Room facilities There is high- speed internet access, but you need a password and code which can only be obtained by buying a pre-paid card from reception (different tariffs are available depending on the length of access needed). I’d just checked in carrying a laptop case, so was a little nonplussed at having to return to reception to buy this.
I was visiting during a very hot few days in Budapest this summer. My room was hot when I arrived, but after half an hour the room cooled with the air conditioning. I discovered it was only possible to keep the air conditioning on by placing the room key in a master switch by the door. I only had one of these, so left it in and requested another room key. So far so good, except that on my return, I discovered the housekeeping had removed the card and placed it on the table and that the room was very hot once more. This continued throughout my stay, so it was difficult to look forward to opening the door.
Restaurants and bars Several options, from the Lobby Bar to the Royal Kávéház & Champagne Lounge, a brasserie, a bistro and the Rickshaw & Sushi Bar. The breakfast buffet in the morning is excellent.
Fitness centre No, but next year brings The Royal Spa & Wellness Center. The original was planned and built by the architect Vilmos Freund in 1886-88. At that time it contained steam baths, wave and shower baths, electric baths, pneumatic chamber and a medical room with cold water.
Verdict A beautiful property, with helpful, polite staff, but a few irritating faults. (Being offered a late check-out was wonderful. I accepted with a smile. Being told I’d be charged E40 for it wiped the smile away.) Nevertheless, this is one of the best hotels in Budapest, second only to the Four Seasons in the splendour of its restoration of a historic landmark.
Price Best internet rate for a midweek stay in November in a standard room was £135. Fully flexible rate £176, Rates exclude breakfast (£13.50) and require 24 hours’ cancellation notice.
