Enache, who manages almost 2,000 rooms in 14 hotels in Romania, said the 3.8% economic growth Romania registered in the first quarter was not felt in the market though the hotel chain registered higher revenues.
In 2013, Continental Hotels reported revenue of 89 million lei (EUR20 million) and a loss of RON18.2 million (EUR4.1 million) with 782 employees, according to Trade Registry data, against revenue of RON87 million (EUR19.8 million) and loss of RON15.7 million (EUR3.6 million) in 2012. 2013 is as a matter of fact the fifth year the hotel chain ends in the red, according to Finance Ministry data.
“We’re coping with financial losses, we have loans worth EUR37 million, contracted for investments. Operationally, we are in the black,” mentioned Radu Enache.
He entered the chain’s shareholding structure at the moment it was privatized, in 1994-1995. The process lasted ten years and involved capital increases. In 2012, Spain’s investment fund GED bought 30% in the chain. Afterwards, Radu Enache stated the plan was for ten 2-star hotels to be built. No project has been started so far.
Continental Hotels is the fourth largest hotel company in Romania by revenue, after Bucuresti Turism (owner of Radisson Blu hotel in Bucharest), Ana Hotels (which owns Crowne Plaza and Athenee Palace Hilton hotels in Bucharest, but also three hotels in Poiana Brasov mountain resort and two hotels on the seaside), and Societatea Companiilor Hoteliere Grand (owner of JW Marriott hotel in Bucharest).
At market level, 2013 brought stalling revenue for the two largest hotel players, but unlike in previous years, the market leader managed to overcome losses.
(English version by Catalina Apostoiu)