“Last year was good, we did 7% better than budgeted and saw 14% growth in revenue, but this year we budgeted growth of 3.5% in revenue. We ended 2017 in the black,” Radu Enache told ZF.
“The hotel market has great potential but I still see it in its early development stages. We have no plans to build from scratch, but are thinking of taking over management of hotels or buy hotels in Bucharest and Cluj, where we see an interesting market, to boost business volume.”
In all, Continental Hotels operates 14 hotels under several brands – Continental, Hello Hotels and Ibis. The chain includes Grand Hotel Continental (five stars) in Bucharest, Continental Forum (four stars) in Arad, Continental Forum (4 stars) in Oradea and Continental Forum (Sibiu), as well as lower-rated hotels.
“The entire chain had a 77% to 78% occupancy rate last year.”
Radu Enache says he will continue to invest in remodeling hotels such as those in Suceava and Targu Mures this year, having allocated EUR3 million for it. In 2017, the hotel company invested EUR1 million in remodeling its hotels in Arad, Oradea and Sibiu, a self-funded investment.
Continental Hotels ended 2016 with 107 million lei (EUR24 million) revenue, according to Finance Ministry data, up 5% on 2015 and RON4.3 million losses.
Radu Enache bought into the hotel chain at the time of its privatization in 1994-1995. In 2012, Spanish-held private equity firm GED bought 30% in Continental Hotels.
(English version by Loredana Fratila-Cristescu)