Rin Grand Hotel of Bucharest, an investment by Ionut and Robert Negoita brothers, is likely to reach an estimated turnover of 17-18m euros amid an occupancy rate expected to revolve around 40%.
"In November, we opened 650 rooms and the occupancy rate has so far topped expectations, of over 10% of the total and 25%-30% of the number of functional rooms. If the occupancy rate reaches 40% next year, we will be satisfied," said Ionut Negoita, who expects the occupancy rate to grow by 5-10% yearly.
Though it's a newcomer on the market, the hotel has been targeted for major events, with 1,000 rooms having already been rented for next year's NATO summit in Bucharest, according to Negoita.
Around 50-55% of the estimated turnover will come from accommodation, with the rest to be secured from events, food&beverages and the spa segments.
The two Negoita brothers invested 60m euros in Rin Grand Hotel, expecting investment amortisation in 6-7 years. Their location - Vitan area is less popular for big 4-star hotels, with most of such units being located in the Unirii or Victoriei areas of Bucharest. However, Negoita believes the central area of Bucharest will expand horizontally.
The businessman says he wanted to build a big hotel from the beginning to justify additional investments, such as conference rooms, spas, restaurants and beauty salons.
The two brothers also own the 4-star Rin hotel, as well as the 3-star Confort and Traian hotels. Negoita says that, once Rin Grand Hotel is opened, the hotels the two own will cover almost 30% of Bucharest's accommodation capacity. This may be the reason why the two brothers will no longer announce new projects in the hotel sector for the time being.
For next year, Negoita says he will focus on real estate projects - residential, offices and malls.
The value of the two brothers' propertie
