Marvel Promotions, the developer of home-building project Monte Carlo Palace said it would begin the construction works for the most luxurious five-star hotel in Romania, which would cost the company some €20 million, as part of the luxury project Galerie Vendome Palace.

The project that will be located in city center, near Athenee Palace Hilton will open its doors in 2012, and will boast a luxury shopping area. The hotel will have 120 rooms.

“We have already concluded an agreement with an overseas five-star hotel chain, and the construction works will begin in April and will last nearly 2 years”, said Edward Popescu, managing director Monte Carlo Palace.

The current economic condition is a real opportunity for developers, he said, as the construction costs fell markedly over the past 12 months. Edward Popescu says costs have declined by around 25% from 2007, for example, when he worked for Monte Carlo Palace project.

The design of the project has been completed in 2008 and the investment totaled €18 million. The developer of the project is Marvel Group, held by Christian Popescu who currently resides in Monaco, and runs businesses in hotel industry, furniture and luxury properties.

By early 2008, 70% of the 111 apartments have been sold, and 8 apartments in the year of crisis. The remaining apartments are rented for €900-€1,500 a month.

Monte Carlo Palace sits on 5,000 sqm in northern Bucharest, in the near vicinity of Herastrau Park. The complex includes studio apartments, 2,3, 4-room apartments and 3 penthouses with 150 – 250sqm and terraces of 120 sqm and 180 sqm.

Which hotel operators will manage the hotel

Although over the past two years Hyatt is reportedly considering opening business in the country, the company said no contract had been signed yet. “Romania is an interesting country, but so far we haven’t signed