10% growth of revenues for five star hotels in Bucharest in 2008

In 2008, the 5 star hotel market in Bucharest, cumulating approximately 2,000 rooms, reached EUR 113-115 mil. according to the estimations made by Ziarul Financiar newspaper, 10% higher than in 2007. The increase is the result of Radisson SAS hotel opening with 424 rooms. The other units reported similar results to those in the previous year.

Kurt Strohmayer, general manager of JW Marriott in Bucharest stated that this year, the financial crisis will have an impact on the market hotel and considers that, unlike 2008, this year the luxury market in the capital will drop.

The GM also considers that, at this point, the market can’t absorb new units.

In 2008, the average annual revenue per room dropped over 15%, down to approximately EUR 35,000, according to the estimates of ZF newspaper, which took into consideration that accommodation accounts for 60% in total revenues, the rest being generated by events segment and restaurants. 

In 2007, Societatea Hoteliera Grand, owner of JW Marriott hotel, registered a turnover of EUR 40 mil. For 2008, the representatives of the hotel stated the turnover was similar to the result registered in 2007.

According to the data provided by Ziarul Financiar, Radisson SAS hotel, which officially opened in September last year, the previous 4 months being under soft opening period, had an account activity between EUR 7 and 10 mil. For 2008, Bucharest Turism company, owning Radisson SAS hotel and Centre Ville complex, registered EUR 15.5 mil. turnover, EUR 7.5 mil. more than in 2007.

Howard Johnson Grand Plaza, controlled by Puiu Popoviciu businessman, announced for 2008 revenues of approximately EUR 15 mil., registering a slightly decrease compared to 2007.

InterContinental Hotel, owned by RHIC Holding hasn’t announced yet the financial results for 2008 but the latest estimates showed sales of EUR 15 mil.

The only 5 star hotels in the capital making public the revenues for 2008 are Crowne Plaza and Hilton. George Copos owns the two hotels which registered a turnover around EUR 32 mil., a result close to the one registered in 2007.

In January 2009, the average occupancy rate of 5 star hotels in Bucharest was under 50%, 10% lower compared to last year.

Continental Hotel is the only 5 star unit to be opened this year and will be located on Calea Victoriei in Bucharest. The unit is owned by Radu Enache business man.

Sursa: Ziarul Financiar [05.03.2009]