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New hotels likely to hurt Sofitel business

14.04.2006, 00:00 8

The general manager of Bucharest-based Sofitel four-star hotel, Bruno Vinette, is getting ready for a tough battle with the hotels due to be opened on the Bucharest market next year. The Frenchman Bruno Vinette, 44, has been running the Sofitel hotel since the beginning of last year, after having managed a Novotel hotel in Moscow. Vinette expects 2007 to be the toughest year for him in Romania.

"The opening of new hotels in 2007 is likely to hit our occupancy rate and turnover by 5-10%," says Vinette. At least four four-star hotels, Bucuresti Radisson SAS and three Ramada-branded units, are scheduled to be opened in early 2007.

"This is a very good area for us, I''m more worried about the hotels that are set to be opened in the centre. That is where it will be tough," specifies Vinette. Sofitel, The hotel is located in the northern part of the capital city and has a maximum capacity of 202 rooms, and is operated under a management contract by the Accor hotel chain. The unit derived turnover worth 8.4 million euros in 2005. The Sofitel is the only four-star hotel competing with JW Marriott, Athenee Palace Hilton, Howard Johnson, Intercontinental and Crowne Plaza luxury hotels. Vinette says that one of the reasons is the very good location the hotel. Best Western Parc, Crowne Plaza and the ongoing 2007 Turist complex, which will be opened under the Ramada brand, are in the close proximity of Sofitel.

"Location is surely a plus. The northern part of Bucharest is growing and it is much easier for a businessman coming from the airport and having meetings in Baneasa to stay here," specifies Vinette.

The four-star hotel industry has been the most prolific segment of the hotel market over recent years, with an increasing number of companies in various economic areas deciding to invest in this area. Moreover, the players present on the five-star sector have also voiced their intention of tackling the four-star market.

Hilton, which has the management contract of the Athenee Palace, is likely to bring the Scandic brand onto the domestic market, and the Marriott International (with a management contract for JW Marriott) may enter the market with the Renaissance or Courtyard brands. Intercontinental International, which has a management contract with the Crowne Plaza, as well as the franchise for Intercontinental is seeking a hotel to affiliate under the Holiday Inn brand.

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