Radu Enache, owner of Continental Hotels, has put all investments on hold

Radu Enache, owner of Continental Hotels, stated that all investments of the hotel chain will be put on hold for at least half year, due to the macroeconomic instability in Romania.

Therefore, Enache cut investments of approximately EUR 62 mil. in four hotels, two in the capital and two in Timisoara. According to Enache, the investments in Timisoara and Bucharest started in December 2008 and stopped in April 2009.

At present, the business man owns plots of land in Timisoara, Cluj-Napoca, Arad, Iasi and Bucuresti on which he plans to develop new hotels.

In 2009, the group controlled by Radu Enache posted turnover of EUR 20 mil., dropping 13% compared to 2008, while for this year the turnover is expected to increase up to the level of 2008, of EUR 27 mil.

At present, Continental Hotels owns 14 hotels under Ibis, Hello, Continental Forum and Continental in Bucharest, Constanta, Sibiu, Arad, Oradea, Targu-Mures, Suceava, Timisul de Sus, Turnu Severin an Portile de Fier, accounting for a total number of 1,855 rooms.

Radu Enache forecasts EUR 2.5 mil. turnover and 60% occupancy for the 5 star hotel Grand Hotel Continental, this year.

Sursa: Wall-Street [28.01.2010]