Hampton by Hilton in Iasi, Hilton Garden Inn in Bucharest, DoubleTree by Hilton in Ploiesti and Cluj, ibis Styles in Arad and Mercure in Bucharest are the six hotels scheduled for opening this year.
Total investment stands at EUR40 million to EUR50 million and is mostly made by local entrepreneurs, ZF has found.
International chains saw the development potential on the local market amid the economic growth of the last few years, the number of incoming tourists and the low affiliation rate, just 7% compared with the European average of 22%.
Radu Enache, owner of Continental hotel chain and of the hotels operating under the Ibis brand of AccorHotels, believes development of international chains in Romania by affiliating already existing hotels shows how inexperienced entrepreneurs are in managing hotels.
“I am seriously considering ending the affiliation for my four hotels because I can successfully manage the Continental hotels, a national brand, and do a better job and spend less than the international chain does, at least at this time when Romania is suffering,” the entrepreneur said.
Continental Hotels includes Grand Hotel Continental (five stars) in Bucharest, Continental Forum (four stars) in Arad, Continental Forum (four stars) in Oradea. In all, the 14 Continental, Hello Hotels and Ibis hotels have almost 2,000 rooms.
Occupancy rate of Bucharest hotels rose to 71% last year from 68% in 2015, and to 60% from 57% in the rest of the country, according to research company STR Global data, Fivestar Hospitality cited. STR Global shows demand for accommodation in Bucharest is higher than the increase in deliveries of new accommodation facilities.
The only greenfield investment in a hotel is ibis Styles Arad developed by FAB Industry, a company of the Balaj family. Another ‘wave’ of hotel openings is expected for 2019 – Mercure Brasov (AccorHotels) and ibis Styles in Bucharest. The Rezidor group, too, will open a Radisson hotel in Brasov in 2019. A Novotel hotel will be inaugurated somewhere other than Bucharest in 2020, Fivestar Hospitality says.
(English version by Loredana Fratila-Cristescu)