Iasi-based businessman Danut Prisecariu, who developed and sold one of the first malls in the country for 34.5 million euros (Moldova Mall in Iasi) three years ago, has completed a nine million-euro investment in Rapsodia Hotel in Botosani, affiliated to the Best Western chain.
Best Western Rapsodia has 150 three and four-star rooms and is the fourth hotel held by Turism Moldova, controlled by Prisecariu, which also owns Traian, Astoria and Studis in Iasi.
Prisecariu bought the hotel in Botosani for 1.7 million euros in 2006 and invested in the renovation and construction of 68 new rooms, rated at four stars, spending an additional seven million euros.
"The clients of the hotel are mainly Romanian business travellers, though there are also foreign tourists, Israelis visiting the place where they were born, in the summer. We anticipate 2.2 million-euro turnover for Rapsodia in 2009, considering that the 68 four-star rooms became available to guests this June," Turism Moldova representatives said.
The company posted 3.7 million-euro revenues from the two hotels and the hostel in Iasi in 2008, with Grand Hotel Traian rated at four stars, while Astoria and Studis hostel are rated as three stars.
The investment in Rapsodia was partly self-funded and partly financed with a loan from OTP Bank.
The hotel business has been complementing the shopping centre development business more and more often lately; not so long ago, the former owners of the River Plaza mall in Ramnicu Valcea announced a 15 million-euro investment in a hotel in Mamaia. In addition, Gabriel Popoviciu, owner of the Baneasa Shopping City mall is involved in the hotel industry, while the Adamescu family, owners of the Unirea shopping centres in Bucharest and Brasov, also own the Rex Hotel in Mamaia.
Prisecariu is one of the most powerful businessmen in Iasi, having managed one of the first significant exits from a real estate business, selling the shopping complex Moldova Mall in the centre of Iasi to Equest investment fund for 34.5 million euros at the beginning of 2006.
He is currently building his second mall, in the centre of Botosani, Uvertura City Mall, scheduled for completion for the first half of next year, following 25 million euros in investments.
Taking this project into account, the investments of the entrepreneur in Botosani amount to approximately 35 million euros, a significant volume for a city with a population barely above 100,000 people and a revenue budget of 38 million euros in 2008, according to the data on its Town Hall website.
Rapsodia Hotel in the centre of the city will also include a 600-seat conference hall and a restaurant.
"The hotel was opened after an extensive upgrade and refurbishment process, which took three years," stated Cristina Ene, relationship manager of Best Western chain, to which Rapsodia was affiliated.
This new affiliated hotel complements the chain, which is now operating 13 hotels in Romania. Best Western chain’s turnover on this market revolved around 12 million euros last year.
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