The Cismigiu Hotel in the centre of Bucharest, bought by Spanish real estate developer Hercesa almost five years ago, could finally be restored and turned into an extended-stay hotel in the next two years. The investors got the construction permit three weeks ago and are now looking for partners to operate the extended-stay hotel and rent the stores on the ground floor.
"This delay of the project was caused by the difficult construction approval process, but we got the permits about three weeks ago. The project has been uncertain until now. At this point, partners can negotiate lower rents than yesterday and probably than tomorrow or two years from now, when the project is set to be completed. As soon as we get tenants, we will seek to get financing and start construction work," stated Alejandro Solano, chief executive of Hercesa in Romania.
The project requires an estimated 9 to 10 million-euro investment to complete.
The Cismigiu Hotel, whose built area is about 7,000 square metres, was nationalised in the 1950s and given back to the heirs half a century later, who sold it to Hercesa for an undisclosed sum.
According to the latest information, the building should have more than 70 rooms and stores, as well as office space, where Hercesa will move its operations.
"This is an extremely complicated project that required in depth verification. Special steps need to be taken for it to be built the best way possible, considering it is located in a historical area," Solano said.
The Spanish company owns other plots of land in Bucharest, as well, which are to be used for residential complexes and the construction of a hotel close to Piata Unirii.
Out of its residential projects, Hercesa only started construction work on the Vivenda complex, close to the National Stadium, where it will complete 420 homes by the beginning of next year.
