The Sky Gate Hotel in Bucharest, which was taken over by the international Dutch chain Golden Tulip, estimates its turnover will increase by some 20% in 2006 to a total of 3 million euros.
The growth, hotel officials explained, was due to better positioning of the product on the market.
"Despite the prevailing opinion that too many buildings are being built at the moment, the current 3-to-5 star hotel infrastructure in Bucharest is lacking in terms of number, supply to demand ratio and individual and total volumes in terms of accommodation capacity," says Paul Marasoiu, Golden Tulip''s regional manager for Romania and the Republic of Moldova.
Marasoiu believes the market is far from saturation.
"Proof of this comes in those situations when hotel operators and event organisers are forced to turn down lucrative business because Bucharest does not have the necessary capacity to host an event with large numbers of participants (over 2,000 people)," he said. Works on the Sky Gate began in 1998 and were completed 2 years later, with the total value of investment in the hotel amounting to 9 million euros. The hotel is currently managed by Peacock Hotels. Sky Gate''s occupancy rate is expected to increase 6% in 2006 to a total of 72%.
"Peacock''s assessment of local hotel market dynamics shows business and event travel to be the main component of the hospitality industry in Romania, which it says is efficient and on the rise," Marasoiu said.
He estimates that business travel accounts for 67-84% of the hotel''s total revenues. andreea.gorenendjik@zf.ro
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