Corporate contracts to provide accommodation for expats over a long period, generate 90% of revenues of Bucharest's Sofitel hotel (managed by the Accor group), according to company representatives. Sofitel has signed contracts with companies from Germany, France and the UK.
Over seven million euros are generated by these contracts, whilst Sofitel's turnover in 2007 stood at around 8.5-9 million euros.
"The turnover was slightly up from 2006, and this year, we want to preserve the same level, based on our ability to attract business groups and maintain the number of individual bookings on the business segment at a very high level," said Gabriela Rotariu-Bergeron, director of sales & marketing of the Sofitel hotel.
The hotel's occupancy rate stood at 74%, down 2% against the preceding year.
"In 2008, we forecast a lower occupancy rate of 70%," specified the hotel's sales & marketing director. Company representatives have budgeted slight declines in both the occupancy rate and revenues following heightened competition on the hotel market.
This year, the 4 and 5-star hotel markets will boast the highest accommodation capacities of the last few years, after the 5-star Radisson hotel on Calea Victoriei (central Bucharest), and the 4-star Rin Grand Hotel start operating at full capacity.
This will boost the capacity of 4 and 5-star hotels by 50% and bring an additional 2,000 rooms onto the capital's market. Other major players on the 4-star market include Novotel, Ramada, Golden Tulip and Phoenicia, whilst the 5-star market includes players such as Hilton, Marriott and Howard Johnson. However, the low number of tourists has affected hotels, especially at weekends.
"We are not expecting the leisure segment to develop in the near future. Romania does not attract many tourists, and the volume of revenues derived from the leisure segment is low. It will be at least 3 or 4 years until the Bucharest tourist market reaches the level of the Czech Republic or Budapest markets," said Gabriela Rotariu-Bergeron.
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