50% profit margin for Crowne Plaza

Crowne Plaza, the Bucharest-based five-star hotel, which is part of Ana Hotels’ portfolio, a company controlled by businessman George Copos, posted a net profit worth 10 million RON (3 million euros) in the first six months of this year, a 3.5% increase on the same time last year. The hotel’s turnover increased by 7% in the first half against the same period last year, to 21.7 million RON (6.5 million euros). The company registered a profit margin of approximately 50%, a level almost impossible to reach for most companies present on the market. It is quite common for five-star hotels in Bucharest to register high profit margins, because of limited accommodation and the extremely high demand. In the case of Crowne Plaza, the price of a room is around 200 euros per night. “The largest contribution to the turnover came (as is the case for all hotels) from accommodation-generated revenues and was followed closely by revenues derived from the food & beverage segment, the bulk of which came from organising corporate and also private events,” said Mioara Gheorghe, marketing and sales manager for Crowne Plaza.