Marten Schoenrock: 5 star hotels rates dropped 20%

Since the beginning of the year, tariffs at 5 star hotels in Bucharest decreased by 20% and it is expected to remain constant next year, considers Marten Schoenrock, General Manager of InterContinental Bucharest.

Also, Schoenrock considers that the prices stagnation will lead to an improvement of occupancy rate in 5 star hotels, due to the economic recovery. The occupancy has also declined by 20% between January and September 2009. A tariff come back to the 2007 level and the first part of 2008 will happen in 2011, stated the representative of InterContinental.

The GM of InterContinental appreciates that the recovery of hotel industry in the capital has started with the current month and considers that the tough period is gone.

Marten Schoenrock stated that the best month this year was May, but expects September to be even better, due to the George Enescu festival.

InterContinental revised by declining the turnover estimates, as a result of tariffs falling by 15-20% and the average occupancy rate by 5-7%, under 50%, compared to the first eight months of last year. 

Upgrading works, worth EUR 10 mil. for the 21st floor of the hotel, also implied preliminary works of rehabilitating the 20th floor, as well. Schoenrock specified that the 20 floor, currently with 26 rooms, will have fewer rooms at the completion of the works, as 3 – 4 larger apartments will be developed.

At present, InterContinental has 267 employees, 10% less compared to the beginning of the year. The positions of employees leaving voluntary were not occupied.

In the first six months of the year, InterContinental Bucharest, the company managing the hotel, reported EUR 1.36 mil. loss. For the same period, the turnover reached EUR 4.57 mil., lower than 2008, when the hotel registered EUR 7.86 mil.

Sursa: Money [09.09.2009], Business Standard [10.09.2009], Wall-Street [10.09.2009]