Financial crisis impacts hotel market in Cluj

The effects of financial crisis continue to affect the hotel market in Cluj city. In some cases, in the first quarter of this year, local hotel owners registered occupancy rates 50% lower compared to the same period last year.

According to recent estimates, the hotel market in Cluj could reach EUR 25 mil. this year, decreasing by 17% compared to 2008.

In the first three months of 2009, the average occupancy rate of hotels in Cluj was between 30% and 65%, considering the fact that tourism business accounts for over 90% of tourism in Cluj-Napoca city.

The main hotels in the city expect sales drop exceeding 10% for 2009 compared to the previous year or stagnation, at best.

The sole 5 star hotel in Cluj, Opera Plaza, registered an average occupancy rate of 62% in the first quarter of the year, approximately 12% less compared to the same period last year.

In the first quarter of 2009, the turnover of Opera Plaza declined 8% compared to the similar period last year.

For the current year, the representatives of Opera Plaza forecast EUR 2.7 mil. turnover, 10% lower than in 2008, when it registered EUR 3 mil.

Hotel’s management stated that there will be no major investments within Opera Plaza hotel this year. They also stated that they plan to implement trainings for employees.

Transilvania Development Company, managing the 3 and 4 star hotels City Central and City Plaza in Cluj, registered an average occupancy rate of the two hotels of approximately 59% in the first quarter, decreasing by 9% compared to the same period last year.

City Hotels management prospects an average occupancy rate for the two hotels of approximately 67% for the current year, dropping 7% compared to the last year.

Transilvania Development foresees EUR 2.3 mil. turnover for this year, similar to the result of 2008. 

City Hotels’ representatives have recently announced that the up-grading works of City Plaza into a 5 star hotel will be completed in September this year. The investment project reaches approximately EUR 5.5 mil.

The management of AB Onix Hotel, administrating the 4 star hotel Onix in Cluj announced that the average occupancy rate of the hotel in the first quarter of the year was 38%, dropping by 50% compared to the last year.

In 2008, AB Onix hotel registered a turnover of approximately EUR 1.6 mil. and estimates a similar trend of sales for this year.

Last year, the management of AB Onix Hotel announced their plans to start developing a 5 star hotel, with an investment of minimum EUR 6 mil., but, due to the financial crisis, the company has temporary suspended the project.

Sursa: Ziarul Financiar [15.05.2009]