SIF Transilvania continues to invest in upgrading hotels in the portfolio

SIF Transilvania plans to sell several 2 star hotels owned at the seaside and has no intention of further investments in the sector, but only to complete the under going projects. The company will re-direct its funds towards other domains such as financial-banking or industry sectors.

Mihai Fercala, President of SIF Transilvania, stated that, in case the 2 star assets do not sell, the units will be demolished and the company will allocate the available spaces for other constructions. SIF Transilvania will try to develop high standards relaxation centers in order to select customers, specified Fercala. 

At present, SIF Transilvania unfolds investments of approximately EUR 75 mil. to rehabilitate the hotels in portfolio. Fercala stated that the company has invested approximately EUR 20 mil. in rehabilitation works this year. The same amount is allocated for the next year.

In Tusnad resort, Oltul hotel is under renovation. The company will also start the rehabilitation works of Tusnad hotel within 2 years. Caprioara and Bradul hotels are also under developing, the last one being almost completed, while modernizing works from Buzias will start next year. Regarding the seaside area, only Narcis hotel will be upgraded, specified Fercala.

Other assets already under upgrading process are Orizont Hotel in Predeal mountain resort, which will be 4 star classified and a leisure complex located in Baile Felix resort, Bihor county.

Fercala also stated that SIF Transilvania tries to turn the spa resorts into entertainment centers for young tourists and completely separate this segment from the medical treatment. Therefore, the company allocated EUR 22-24 mil. to rehabilitate a complex in Baile Felix, which could be completed until the end of August 2010.

SIF Transilvania is also performing upgrading studies for Oglinzi resort, Neamt county.

In the first semester of the year, the company reported EUR  26.1 mil. profit, 46% higher compared to the similar period in 2008.

Sursa: Curierul National [04.12.2009], Daily Business [07.12.2009], Ziarul Financiar [07.12.2009]