Josef Goschy, who controls 25 hotels on the Romanian market, says he has not managed to sell any of the 6 properties he has put up for sale and which should have brought him 25m euros.
"I have zero cash. Still, I haven’t fired any of the 1,000 employees working in my hotels. I will probably resort to some layoffs after the summer season ends," says Josef Goschy, owner of Unita Turism group.
The businessman, whose hotel units generated 15m euros last year, says he hasn’t embarked on any investment project as he lacks cash.
"It seems this is not a sale period, but it could be a period of acquisitions for those who have money. Of all the assets I’ve put up for sale since the beginning of the year, I want to sell at least one to turn around financially".
Amid the cash shortage, several entrepreneurs have put up for sale more than 20 hotel units, valued at 80m euros.
Revenues generated by the 25 hotels Goschy owns in Romania will amount to 12m euros this year, 80% of last year’s turnover. The hotel business of Unita Turism posted a 15-20% drop in the first 7 months of this year, compared with the figures registered in the same period of last year.
Almost half of the 3,500 rooms Goschy controls are in seaside hotels, which were opened this June and brought 1.6m-euro revenues by late July. "Seaside hotels registered an 80-85% average occupancy rate," said Goschy.
Despite the 15% cut in accommodation prices from last year, the number of tourists in the businessman’s hotels has not gone up. "I believe August will be the same as July, and by yearend seaside hotel revenues will account for 85% of last year’s level."
Hotels held by the businessman in other areas of the country did not generate higher revenues in H1, either. "These hotels brought almost 80% of the revenues they recorded in the first half of last year," mentioned the owner of Unita Turism.
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