Belgrade’s hotel market may soon be shaped by luxury hotels, with the St. Regis Hotel setting the standard for high-end accommodation. Zoran Danilović, a real estate analyst specializing in the hotel sector, shared insights with Forbes on what defines luxury hotels and how the decision to open such establishments is made.
According to Danilović, while Belgrade boasts several five-star hotels, only the newly opened St. Regis can truly be considered a luxury hotel. “It is the first luxury hotel in Serbia,” he says. “This is evident in the pricing, services, and overall hotel experience. Every detail is carefully considered, from guest arrival to room amenities, dining and customer service to ensure guests have a premium experience.”
The role of tourism and direct flights
Belgrade currently has six five-star hotels, one of which is classified as high luxury. Danilović explains that the decision to open such hotels hinges on the brand’s assessment of the market. Key factors include the availability of direct flights from major luxury markets, such as the USA, Western Europe, China and Japan, and the increasing flow of foreign tourists. “Since the pandemic, we’ve seen a rise in foreign tourism and projections suggest it will continue to grow by 15% annually over the next few years,” says Danilović.
Beyond Belgrade: Potential for luxury hotels in Serbia
While Belgrade is the primary location for luxury hotels, Danilović sees potential for these types of accommodations in other parts of Serbia as well. “Belgrade is a natural first stop for international visitors, but other locations in the country may also benefit from such investments,” he adds.
Room occupancy and long-term success
For luxury hotels to remain profitable, Danilović highlights that occupancy rates should ideally reach around 70% annually. Along with high room prices, consistent demand is key to sustaining operations. “The hotel business is a marathon, not a sprint,” he notes. “Proper positioning now creates an opportunity for future growth, especially as tourism continues to expand.”
In conclusion, the success of the St. Regis Hotel in Belgrade could serve as a crucial test for the city’s luxury hotel market, potentially setting the stage for further high-end developments across Serbia.
