Continental Hotels: average occupancy of 51%

The average occupancy of hotels owned by Continental chain was 51% from the beginning of this year, declining 68% compared to the same period last year.

Radu Enache businessman, owner of Continental hotel chain stated that events such as conferences, meetings, trainings account for only 30-40% of last year’s volume, despite lower tariffs.

Hotels in Continental chain register 65-70% of the revenues from accommodation. The rest comes from hosting business events and food and beverage segment.

Radu Enache stated that the company is considering several alternatives implying various measures, out of which the worst case scenario, of drastic crisis, will imply immediate close down of a hotel which becomes unprofitable. The personnel will be relocated in other units of the chain.

As cost cut measures, the company reduced the marketing budget and some bonuses for employees, reduced utilities, fuel and acquisitions expenditures.

The investment plan of Continental hotel exceeds EUR 135 mil. and aims to reach 36 units in the company’s portfolio, compared to 14 at present.

Works to the hotel complex in Timisoara were stopped, but the plan to develop a hotel complex every year is still on, the company owning lands in Bucharest, Timisoara, Cluj and Iasi.

This year, Ibis Hotel in Sibiu opened and will be followed by the official opening of the 5 star Grand Hotel Continental in the capital. For the two projects, the company allocated investments of EUR 15 mil.

Sursa: Ziarul Financiar [03.09.2009]