25m-euro lower revenues in 2009 for five major hotel owners

Five of the largest hotel owners in Romania, George Copos, Mohammad Murad, Josef Goschy, Ionut Negoita and Octavian Lazar, holding together more than 8,000 rooms in Romanian hotels, that is around 2.5% of Romania's accommodation capacity, last year registered 25m-euro lower revenues in the hospitality industry than in 2008.

In 2008, the five entrepreneurs' hotel business reached 90m euros, and in the same year Romania could provide accommodation to 294,000 tourists, according to National Statistics Institute data.

Though they operated at even 50% lower occupancy rates and cut tariffs by as much as 40%, the five owners maintain they ended the year in the black, but not all of them specified the value of profits.

"I ended last year with almost 3m-euro lower turnover, therefore with a 20% drop, to around 14m euros for all the hotels I own," stated Ionut Negoita, owner of the biggest hotel in terms of the number of rooms, Rin Grand Hotel.

He also says that not including the amortisation of investments in hotels, he made profit last year. The biggest revenues, 9.1m euros, were generated by Rin Grand Hotel.

"We managed to reach these revenues because of the events organised in the hotel, which bring more than half of total revenues," said Negoita, who sees hotel turnover rise by 8% in 2010.

George Copos, who owns 7 hotels through Ana Hotels, also made lower revenues from hotel operations. Thus, from 41m euros in 2008, Copos reached 26m euros.

Josef Goschy, one of the biggest hotel owners, with 3,500 rooms in 25 accommodation facilities through Unita Turism group, also felt the crisis fallout. Goschy reported 20% lower turnover, namely 3m-euro lower revenues from 2008.

Lebanese-born businessman Mohammad Murad, owner of Perla Majestic group of firms, also ended 2009 with a profit. Murad maintains he had a 12% profit margin.

Lazar family, controlling a majority stake in Caro Hotels hotel complex, gained 1.5m-euro less last year. The complex generated 2.5m-euro turnover last year, down 37.5% from 2008, according to Octavian Lazar.