Howard Johnson, the latest five-star hotel on the Bucharest market, has set its 2005 turnover target at 9 million euros, amid a projected raise in prices.
This year, the hotel will report turnover worth more than 6 million euros, slightly higher than the target set at the opening, this year.
"For 2005, we have decided on a target of about 9 million euros, as tariffs will also go up by about 10-15%. In the first year, the hotel functioned at special, lower tariffs, and starting next year we will introduce normal tariffs," said Antoni Kuhnen, the general manager of the hotel.
The average occupancy rate stood at about 60%.
In line with Kuhnen's estimations, the hotel will start generating profit after six years.
Howard Johnson is the former Dorobanti Hotel that has been renovated in the wake of investments revolving around 30 million dollars. This is also the only five-star hotel decorated in a minimalist style.
The Howard Johnson brand belongs to Cendant group, the largest franchiser in tourism, grouping more than 5,600 hotels worldwide.
The hotel based in Bucharest has an accommodation capacity of 285 rooms and apartments, joined by restaurants, bars, and conference halls with a total capacity exceeding 1,000 seats, as well as a health club and a two-level, guarded underground parking lot.
The hotel is included in the five-star category and the tariff per one night of accommodation with Howard Johnson Grand Plaza starts from 150 euros during the season.
The owner of Howard Johnson Grand Plaza of Bucharest is Grand Plaza Hotel SA, which uses the brand in line with a franchise contract. The company's shareholders, Romanian natural persons, also own Parc and Turist hotels of Bucharest. Of these two, Turist is closed for renovation investments, and will be included in the same Howard Johnson chain, while Hotel Parc is already part of the Best Western network.
Howard Johnson chain has announced plans to develop a franchise network in Romania and turn another eight hotels into its own branches over the next six years. Romania is the first and only Eastern European country where a Howard Johnson licence has been sold. The chain wants to consolidate its position on the Romanian market first and then will approach other neighbouring countries. Kuhnen says no further investments will be made in the Howard Johnson hotel in 2005.
Bucharest's hotel market has recovered this year after a weaker 2003 year amid foreign events such as the war in Iraq and SARS.
georgiana.stavarache@zf.ro
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