Hotels in Bucharest are around 40% more expensive than in Berlin, and 50% more expensive than in Ankara, with prices being, however, lower than in Moscow, Zurich and London, according to a Deloitte study conducted between April 2007-April 2008.
The average price of a Bucharest hotel room stands at around 128 euros, almost 30 euros higher than a year ago. The average occupancy rate fell by around 7% in January-April of 2008, compared with the same time last year, which could have to do with the opening of new hotels, according to the same study.
The end of last year saw the opening of the 4-star Rin Grand Hotel, which has a 1,500-room capacity, after the Ramada Plaza hotel, located in the Northern area of Bucharest, opened this year.
While on a downward trend, the occupancy rate of hotels in Bucharest is above the European average. At the weekend, the occupancy rate stands at around 20%, compared with over 50% during weekdays. Out of the cities Deloitte studied, the highest occupancy rates were registered in Paris (75%) and London (78%).
The average revenue per room in Bucharest went up by around 18%, above the Paris growth rate (16.6%). While Paris hosted a series of sporting events in the first four months of 2008, which included the RBS 6 Nations Rugby Championship, the Romanian capital hosted the NATO summit, which stretched the 4 and 5-star hotels' capacities the maximum.
The high accommodation prices of hotels in Bucharest can also be explained by the still weak competition. Many prestigious hotel chains are still not present on the market, with the market share held by hotels affiliated to international chains being extremely low.
Among the hotel chains with a strong presence in Central and Eastern Europe, only Hilton, Marriott, Rezidor (with Radisson SAS on Calea Victoriei), Accor (which operates the Ibis brand), InterContinental, Wyndham, Best Western and Golden Tulip have entered the Romanian market.
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