Goodbye Ritz-Carlton, Hello Al Habtoor Palace: A New Era of Luxury in Budapest

The Ritz-Carlton Budapest, a luxury hotel that opened in 2016 as the chain’s first location in Central and Eastern Europe, has undergone a significant change. As of January 7, 2025, the iconic Ritz-Carlton logo has been removed from the building, marking the end of its association with the Marriott Group’s prestigious brand.

New Ownership and Rebranding

The hotel, located in a historic building that originally housed an insurance company, is owned by Khalaf Al-Habtoor, a Dubai-based businessman of Saudi origin. The Al Habtoor Group, which has interests in hospitality, real estate, and the automotive industry, purchased the building in 2012 with the intention of upgrading it from the premium Le Méridien brand to a luxury brand within the Marriott Group.

Al Habtoor Palace Budapest

The luxury hotel will now operate under the owner’s own brand as “Al Habtoor Palace Budapest”. This change represents the global debut of the ultra-luxury Al Habtoor Palace brand, starting from Budapest, which is described as the “jewel of Central Europe”.

Reasons for the Change

While the exact reasons for the rebranding have not been explicitly stated, it’s worth noting that:

• The Al Habtoor Group is currently in a legal dispute with the Marriott Group over the termination of the management contract for The Ritz-Carlton Budapest.
• The owner is seeking significant compensation from the hotel conglomerate.

Impact and Future Prospects

Khalaf Al-Habtoor, founder and chairman of the Al Habtoor Group, stated that the introduction of Al Habtoor Palace in Budapest reflects their vision to expand their domestic luxury brand into Europe. He emphasized that the hotel, located in the heart of the historic Adria Palace, represents the pinnacle of hospitality while offering an unforgettable experience in one of Europe’s most vibrant cities.

The rebranding marks a significant milestone for the Al Habtoor Group and signals their ambition to establish a presence in the European luxury hotel market. Guests can expect a unique blend of sophisticated amenities, personalized care, and world-class standards that have distinguished Al Habtoor Hospitality in the Middle East and globally.

As this change unfolds, it will be interesting to see how the Al Habtoor Palace Budapest positions itself in the competitive luxury hotel market and what new services or experiences it might offer to distinguish itself from its predecessor.

Image source: The Ritz-Carlton Budapest Facebook page