Abstract
Hungary may be the most attractive of the former Communist nations to outside developers. Its progressive government has implemented development-friendly policies. Hungary's three domestic hotel chains-HungarHotels, Danubius, and Pannonia-are in various stages of privatization. While the luxury-hotel market is saturated in major cities, considerable opportunity exists for joint ventures to build two- and three-star properties in outlying areas or second-tier cities. Despite its prodevelopment atmosphere, however, Hungary still presents considerable barriers to would-be hotel developers. Those barriers include a dearth of qualified local companies, questions about land title and financing terms, and a glacial bureaucracy.
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