Four-star Royal hotel, the newest on the local market, plans to attract clients with tariffs 20 percent lower than its competitors. The average fee for a four-star hotel room in Bucharest is €100-200.
“We target occupancy ratio of some 70 percent. Some 80 percent of the business will be made up by foreign tourists,” the hotel’s General Manager, Pufleni Donchi, said. Donchi is also shareholder of Baron Service company, which owns the hotel. The company also owns the four-star Royal hotel in Constanta.
Donchi said Baron Service is to build a hotel in the Poiana Brasov mountain resort. “It will be a greenfield [investment] because buying and modernizing [a hotel] is extra-work and is not profitable,” he added.
The Bucharest unit has 97 rooms, conference halls and restaurants. The investment to buy the land and build the hotel amounted to €7 million, estimated to pay off in six-seven years, according to Donchi. “The turnover we target for the first year is €3-4 million,” he added.
