Sofitel Hotel, part of World Trade Center Bucharest complex (WITCB), in the first six months of the year derived 11% higher revenues than in the corresponding period of last year, said Mircea Ursache, chairman of the State Asset Resolution Authority (AVAS). WTCB is under AVAS administration.
The average occupancy rate in the first half of this year amounted to 70%, 8% higher as compared to last year's first half.
Last year, the hotel registered turnover standing at 7.5 million euros, 14.5% lower year-on-year, following the overall shrinking demand.
Also, Sofitel had posted net profit worth 2.48 million euros in 2003, similar to the level logged in the previous year. This is equivalent with a 33% net profit margin. "2003 was not a favourable year for the global hotel business, which also impacted on the operations of Sofitel Hotel," Ursache said, explaining the decrease in the hotel's revenues.
After last year's drop, revenues registered an ascending trend in the first half of this year, said the AVAS official. "In the first half of year 2004, revenues increased 11% against the similar period of last year. The main factor is the overall increasing demand on the hotel market that is characterising the current year, whereas demand for four and five-star hotels can be seen as remarkable," AVAS chairman also said.
Sofitel Hotel is a four-star hotel, with 202 rooms and 250 employees. The hotel is operated on the basis of a management contract by French hotel chain Accor.
In 2003 and the first half of 2004, the investment amounted to 300,000 euros. Investments were mainly aimed at the renovation and modernisation of hotel equipment.
Together with the French Village and the French Club, Sofitel is part of the World Trade Center Bucharest complex (WTCB), which was transferred under AVAS receivership after failing to pay back its banking loans. WTCB has honoured all its external obligations and still holds debts to three banks that granted it a syndicated loan (Ion Tiriac, BRD, BCR), to the Bucharest City Hall and AVAS. The AVAS receivables amount to 90 million euros.
Consequently, AVAS will organise a tender for the sale of the French Village assets. "This way, AVAS receivables can go down by about 20 million euros from 90 million euros, and the money will be transferred to the Risk Fund of the Finance Ministry. The rest of the debt will be rescheduled," Ursache also said.
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