30% increase of accommodation capacity in Bucharest until the end of 2011

8 hotel units will be developed on the hotel market in Bucharest until the end of 2011, which could lead to a 30% increase of accommodation capacity, according to a report carried out by CBRE Eurisko real estate consultancy company.

The new units will focus on 4 and 5 star segment, with a capacity up to 200 rooms.

Last year, the accommodation capacity in Bucharest increased by 30%, compared to 2007, the highest increase registered since 1989.

The number of hotels to be opened in the capital over the next 3 years is 50% lower than the estimates of the last quarter of 2007, considering the hotel projects announced at that time.

The hotel market in Bucharest will no longer be attractive for investments in 2009. Half of the new projects previously announced will not be completed. For the current year, it is estimated that the existing accommodation capacity will add 600 new rooms.

Experts in tourism industry confirmed the idea, stating that 2009 will fall in opening new hotels. More than half of the projects already started will not be finished due to the uncertainties characterizing the market, stated Sorin Ionescu, manager of the consultancy company Fivestar Hospitality. In his opinion, this situation will last until 2010, but hotel industry development will also depend on governmental incentives.

According to the same study, hotel sector in the capital registered 64% increase of foreign direct investments flow in 2008.

Bucharest registered in 2008 a 12% fall of average revenue per available room (RevPar) and, at the same time, a drop of the occupancy rate, as a result of the financial crisis and of the credit slow-down.

At present, hotel supply in Bucharest comprises 10,300 rooms, in 118 hotels.  

Sursa: Cotidianul [17.02.2009], Curierul National [17.02.2009], Daily Business [17.02.2009], Financiarul [16.02.2009], Romania Libera [17.02.2009], Business Standard [17.02.2009], Travel Manager [17.02.2009], Wall-Street [17.02.2009], Ziarul Financiar [17.02.2009], Ziare.com [17.02.2009]