The two hotels have 681 rooms and their owners are listed on the bourse.
The other luxury hotels of Bucharest have not released their 2013 financial results, yet.
Compania Hoteliera InterContinental Romania (RCHI.RO), which owns InterContinental hotel, ended 2013 with revenue of 43.3 million lei (EUR9.8 million) and profit of RON31,308 (EUR7,000), according to the report published on the company’s website.
This year’s net profit is estimated at RON250,000 (EUR56,900), according to the same source. The occupancy rate is expected to reach 63.5% this year, similar to last year’s figure.
“2013 operating income was 1.6% higher on the year. Accommodation income stayed approximately unchanged amid the 5.7% higher occupancy rate and on the average tariff per room, which dropped by 5.34% on the year,” reads the company’s report.
An activity decline to the level where the company no longer generates positive cash flows is the main risk, shows the report. “To counter all these risks, the company is reviewing and cutting all expenses, without harming quality standards”.
The Bucharest hotel is part of international chain InterContinental Hotels Group.
“The euro zone economic crisis has a direct impact over the company as direct investment in Romania may fall, eroding the flow of foreign business tourists and the sums they spend on hotel services. We wish to point to the liquidity risk and to cash flow risks considering in 2014 we will continue reimbursing the loan contracted from UniCredit,” reads the report.
In 2013, the company started paying back the EUR15 million loan contracted from uniCredit in 2011 for refurbishment works and the payment of some debts.
InterContinental’s bourse capitalization stands at RON54.2 million (EUR12 million).
Bucuresti Turism, the company that owns Radisson hotel of Bucharest (424 rooms), Romania’s largest five-star hotel, also turned into the black in 2013 after having posted losses since 2008. The company’s revenue hit RON116.3 million (EUR26 million), while net profit amounted to RON5.7 million (EUR1.3 million).
Of total clients, 75% were foreigners, and the rest Romanians, reads the 2013 report published on the bourse.
Bucharest’s Radisson Blu belongs to Radisson Blu Hotels & Resorts, part of Carlson Rezidor group. The hotel is held by Bucuresti Turism, controlled by BEA Hotels Eastern Europe.
The other five star hotels of Bucharest have not reported 2013 figures, but in 2012 all of them, except Aducco Imperial Carol Parc hotel boutique, the smallest luxury unit by accommodation capacity, reported losses.
There are around 2,000 five-star rated hotel rooms in Bucharest, according to the latest data available. In Romania, there are 30 5-star hotels, with 3,100 rooms, out of a total of almost 1,600 hotels.
(English version by Catalina Apostoiu)