The Muntenia branch of the Elvila Group, which specialises in getting furniture contracts for hotels and office buildings, estimates an increase in orders by 600% this year compared with 2004. "The substantial increase in the number of orders estimated for this year is related to the fast-paced development of the hotel market, mainly, and of the real estate market in general," George Danielescu, the head of the Muntenia branch told ZF Transilvania.
He added that last year this particular division of the group had contributed approximately 10% to total group turnover.
The Muntenia branch official estimates that revenues from this sector in 2005 will account for approximately 18% of the total turnover of the group.
Danielescu explained he could not estimate how much of the hotel furniture market his company accounted for, because there are no clear records of the dynamics in this sector. All four factories of the group manufacture furniture for use in hotels. Elvila has four furniture factories in Beius, Ramnicu Valcea, Piatra-Neamt and Mizil and a network of more than 30 stores, five of which are stores covering large areas, of more than 5,000 square metres.
Almost 47% of the total sales on the hotel and office furniture segment are made in Transilvania.
Elvila Group posted net losses of 1.15 million euros in the first seven months of the year, caused by the appreciation of the domestic currency against the euro. The group posted net profits of 3 to 4 million euros each year over the past few years.
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