Crowne Plaza, part of Ana Hotels' portfolio, in the first six months of this year derived turnover worth five million euros, up 15% from the similar period of last year.
"Income also advanced by around 10% against the first half of 2005, and this is largely due to the fact that the businesspeople segment, our main target, is developing in Romania," Franz Rattenstetter, Crowne Plaza general manager, told ZF.
He added Crowne Plaza's closeness to the airport and ROMEXPO centre, hosting most fairs and exhibitions, makes businesspeople arriving in Romania stay with this hotel.
"For this year we've budgeted turnover worth 10 million euros, slightly higher than in 2005, when the hotel posted full-year turnover worth 9.4 million euros. Revenues largely come from the food & beverage sector, as well as from event organising, with demand constantly increasing on this segment.
As regards hotel development plans, after 2 million euros were earmarked to refit the kitchen and expand the restaurant by building a covered patio that customers can use during the winter period, rooms are also going to be renovated. Thus, rooms will have new entertainment systems, including LCD displays, video devices or free Internet access available by yearend. The presidential suite is also scheduled for refurbishment next year.
"In two years (2008), we will celebrate ten years of existence on the Romanian market and, according to the management contract we signed, we have to renovate the hotel every ten years. We are going to do this gradually and this is why we've started so soon," mentions Franz Rattenstetter.
Crowne Plaza hotel has 165 rooms and apartments and ten conference rooms. Tariffs for standard rooms range between 150 and 235 euros per night, while the two-room presidential suite can be had for 800 euros per night.
According to Rattenstetter, the Romanian market is still open to four and five-star hotels, with an absorption rate of one hotel of this type per year. International chains such as Hyatt, Four Seasons or Kempinski have already voiced their intention to enter the Romanian market, with market sources having confirmed that some of them have already chosen location.
"At any rate, other 4 or 5-star hotels will not enter the market sooner than 4-5 years from now, since such a project takes a lot of time and money, especially in the case of greenfield projects," says Crowne Plaza representative.
On the other hand, Rattenstetter underscores the domestic market is favourable to the opening of 2 and 3-star hotels. These are hotels part of Holiday Inn and Holiday Inn Express brand.
Crowne Plaza is part of Ana Hotels group, owned by businessman George Copos and operates under a management contract with Crowne Plaza and under an Intercontinental International franchise.
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