Hagag Development Europe selected Radisson Hotel Group as operator for its first hotel development in Romania, to open under the Radisson RED brand, following an investment of over EUR13 million.
Hagag started the permitting procedure to revamp and repurpose its property on 5-7 Vasile Lascar Street, in central Bucharest. The project will engulf over EUR13 million and entails the transformation of an old office building dating back to the 1940s. Historically serving as the offices of the Institute of Hydroelectric Studies, the old office maze will be fully renovated and redesigned to provide 104 guest rooms in the historic Old Town area, offering guests a unique blend of modern amenities and historical charm.
“We have a lot of trust in the local hotel market and we believe that there is no better partner than Radisson Hotel Group to support our vision of transforming H Vasile Lascar into a lifestyle destination that will not only enhance our property’s value, but will revive one of Bucharest’s most elegant neighborhoods. Our ambition is to offer stylish hotels with modern design and meaningful experiences, at a fair price, and we are delighted to see our properties being associated with one of the largest international hotel chains,” said Yitzhak Hagag, Co-founder and Chairman of Hagag Development Europe.
The new Radisson RED Bucharest Old Town will be the first Radisson RED property in Romania and in Bucharest, which the Group has identified as a key city for growth.
“(…) This addition marks the entry of our fourth brand in Romania, solidifying our presence,” stated David Jenkins, Vice President Business Development at Radisson Hotel Group.
Radisson RED Bucharest Old Town will boast a restaurant and bar, a lobby incorporating a co-working lounge and an outdoor terrace, and versatile meeting spaces. A multipurpose room, together with the pop-up venue on the fifth floor, will cater to meetings, events, product launches, and social functions. Additionally, guests will have access to a fitness area, ensuring a comprehensive hospitality experience.
Win Advisors, founded by Catalina Rosu and Alina Vladulescu, advised Hagag Development Europe in securing the debut of Radisson RED in Romania.
“We are proud to have worked closely with Hagag Development Europe in shaping this remarkable project. Radisson RED Bucharest Old Town highlights our commitment and ability to bring our client’s ambitious vision to life, marking a milestone for the entire city,” said Catalina Rosu, co-founder of Win Advisors.
Zamfirescu Racoți Vasile & Partners (ZRVP) provided end-to-end legal support throughout the entire transaction, focusing on the review and negotiation of transaction documents and ensuring a balanced contractual framework aligned with the terms and conditions under which Radisson will operate in the new location. The legal team was coordinated by Marina – Crenguta Florea, ZRVP Partner with extensive experience in real estate and commercial matters.
“(…) Hagag Development Europe is making a strategic move into the hospitality sector, showcasing its ability to continuously optimize its business model and embrace emerging industries,” stated Marina Crenguța Florea, Partner at ZRVP.