Tjorborn Bodin, general manager of what is set to become Bucharest's largest five-star hotel when it opens in April this year, wants Radisson SAS to become the leader of the capital's hotel market.
"In our first year, we want turnover to at least match that of the largest 5-star hotel on the market, and we intend to become the market leader in 2009. " At present, the largest 5-star hotel in Bucharest is the Marriott, which has around 400 rooms and posted turnover worth 38.5 million euros. The Marriott's profit margin is close to 50%, after the hotel's operator reported net profit worth 16 million euros in 2006.
The former Bucuresti hotel, which is affiliated to the international hotel chain Radisson, targets an occupancy rate in the range of other 5-star hotels, such as Marriott, Hilton, Howard Johnson, Intercontinental, Crowne Plaza and Sofitel, i.e. over 70%.
Bodin says the hotel will charge the highest prices among similar sized 5-star hotels. Radisson SAS will have 424 rooms, but will form part of a larger complex, which will include extended stay hotels Centre Ville, a swimming pool, casinos, four restaurants, bars and shops.
"We wanted to build a city within a city, and the whole project cost 60-65 million euros," says Luc Ronsmans, representative of the hotel's Board of Directors. The hotel is held by BEA Hotels, a part of the Israeli group Elbit Medical Imaging Ltd, which is also involved in the development of a shopping centre network, through Plaza Centers company. Its most high profile real estate project is Dambovita Center in Bucharest, which is expected to attract investments worth 600 million euros.
Apart from the business travel segment, which will account for around 74-80% of the hotel's turnover, Radisson representatives also want to attract tourists.
"Bucharest is very popular as a business destination, but no
