Paul Marasoiu, Regional Director for Romania, Bulgaria and Moldova of the Golden Tulip Hotels, Inns&Resorts, and President of the Peacock Hotels global hotel management company, believes that the market will reach saturation when it reaches 10,000 rooms in three, four and five-star hotels.

“If the local authorities and business people will understand that there is a need for an international conference center that can hold some 10,000 in order to stimulate the organization of events in the capital, then we can talk about going over the number of 10,000 rooms, and Bucharest will become an important location for European events,” said Marasoiu for Business Standard.

Mihai Rajnita, Secretary-General of the Romanian Hotel Industry Federation (FIHR) believes that only if there is a drop in occupancy rates in Bucharest hotels can there be talk of oversupply on the market. “The present average occupancy rate in Bucharest is 60-65 percent. If the occupancy rate drops below 50 percent, then there will be a problem,” added Rajnita.

The Project Manager of the Fivestar Hospitality advisory company, Mircea Draghici, feels that the reaching of a critical mass of clients in Bucharest depends on seasonality. “For example, during the NATO summit, the number of rooms could benefit from being 50 percent higher, because there are hotels that will lose business as they refuse reservations for other clients,” added Draghici. At present, hotels are working with a profit margin that could reach 50 percent. He believes that things could change when the market reaches its saturation point, probably in 2010, although he also thinks there is great potential for two and three-star hotels. “In other European countries, tourists choose these types of hotels, while in Romania rooms in two and three-star hotels do not offer the same standards,” said Draghici.