The value of the assets owned by five main hotel owners in Romania dropped 25-50%

Five of the main hotel owners in the country, Josef Goschy, George Copos, Radu Enache, Mohammad Murad and Ionut Negoita, stated that the hotel assets they own decreased in value by 25-50% last year compared to 2008, as a result of the economic crisis.

At present, the hotel assets appraisal, based on the room value, changed. According to the estimates of the Ziarul Financiar, if a room in a 4 star hotel was valued between EUR 180,000 to 200,000, at present its value reaches approximately EUR 130,000. 

Mohammad Murad, President of Perla Majestic group and owner of Phoenicia hotel in the capital, 4 star classified, stated that a room in Pheonicia hotel is currently valued at EUR 130,000, dropping at least 30% compared to 2 years ago. The turnover for Phoenicia hotel is estimated at EUR 8.5 mil., by 35% less than compared to the previous year.

The businessman also owns Phoenicia Express hotel in Bucharest, but also units at the seaside such as Majestic Mamaia, Majestic Olimp and Majestic Jupiter.

Murad considers that, due to the crisis, the depreciation of hotel’s value is a normal situation and the best evaluator of assets is the market itself, the lower the demand, the lower the value and vice versa. The evaluation of an asset can be carried out from real estate or market perspective, an evaluation being often necessary when contracting a loan or when the asset is put on sale, considers Murad.

Josef Goschy businessman, owner of 3,500 rooms on the Romanian market through Unita Turism group, stated that, at present, the value of the hotel assets he owns accounts for only 60% of the percentage registered 2 years ago, when the assets were worth EUR 350 mil. 

The decrease of tariffs per room and, thus, of revenues as a result of the decrease of demand, also contributed indirectly to the depreciation of the value of hotel assets, stated Goschy. 

In 2009, Unita Turism group reported EUR 11 mil. turnover, by 22% lower than the previous year and EUR 1 mil. profit, compared to EUR 3 mil. in 2008.

Radu Enache, owner of Continental hotel chain, controlling 14 hotels 2, 3, 4 and 5 stars classified, with a total of approximately 2,500 rooms, stated that the hotels evaluation starts from the construction budget plus facilities, also considering the EBITDA indicator. 

Ionut Negoita, owner of the largest hotel by number of rooms, Rin Grand Hotel, but also of Confort Traian, Confort Otopeni and Rin Otopeni hotels in the capital, stated that the value of the hotel assets he owns reduced by at least 25% last year, as a result of tariff decrease and other factors.

George Copos, the owner of seven hotels with 1,000 rooms in the country, stated that, although an official appraisal of his assets was not carried out, he considers that all assets depreciated last year, reaching half of the value reported in 2008.

Sursa: Ziarul Financiar [08.03.2010]