Bucharest-based hotel Crowne Plaza cashed almost five million dollars in the first six months of the year.
"This has been a good first half, as we posted results 30% higher than in the corresponding period of last year," Mioara Gheorghe, the hotel's sales and marketing director told Ziarul Financiar. The second quarter accounted for 55% of the $5m.
Crowne Plaza expects full-year revenues to amount to $9.7 million, up ten percent from last year.
The positive H1 results can be grounded, on the one hand, on the hotel's strategy to list prices in euros, as the single European currency has outperformed the US dollar so far.
Prices at Crowne plaza start from 160 euros for a standard room, whereas a suite can cost as much as 350 euros. "Our pricing policy has been very flexible and driven by demand. We are also considering the competition," Mioara Gheorghe explained. Crowne Plaza's management estimates a general increase in prices for accommodation services in the second half of 2004, with this trend set to continue in 2005, if the hotel market remains the same. The hotel has 164 rooms and is one of Bucharest's five five-star hotels.
The number of employees at Crowne Plaza went up from 185 to 218 in 2003, but no more changes occurred this year. The staff is helped by collaborators, paid by the hour or by the day. "We have a stable team of collaborators, ready to work in line with the hotel's procedures and standards," Mioara Gheorghe says.
The hotel's management has a five-year investment plan, consisting of the complete refurbishment of the presidential suite and the club-lounge and also the modernisation and expansion of the kitchen. In the first six months of the year, investments were directed towards furniture, interior redecoration and creating a new concept for the hotel's lobby.
Also, Crowne Plaza expects to benefit from the Universal Postal Union Congress, which will start on September 15 in Bucharest. The hotel estimates that revenues will be 30-40 percent higher than usual during this time of the year, with the occupancy rate to go up to 95%. Prices are also set to go up, from 235 euros to 335 euros for a standard room.
The main competitors of Crowne Plaza are the other five-star hotels in Bucharest: JW Marriott, Athenee Palace Hilton, Intercontinental, and also the newly-refurbished Howard Johnson, which is ranked as a four-star hotel.
georgiana.stavarache@zf.ro ; andrei.frunza@zf.ro
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