Bucharest’s biggest five-star hotel valued at 52 million euros

Radisson SAS, the biggest five-star hotel located in the centre of Bucharest, completely refurbished and upgraded at the end of 2008, was valued in the accounting books of Bucuresti Turism (BUTU) company at 209.2 million RON (52.3 million euros) at the end of last year. The amount does not include equipment, only the value of the building itself.
The hotel company is controlled by Israeli group Elbit Medical Imaging, through BEA Hotels. Elbit also controls Plaza Centers, the company that develops the Casa Radio project.
The valuation of the hotel based on the number of rooms revolves around the same amount, so that with its 424 rooms, Radisson is put at 51 million euros. A five-star hotel room on the Romanian market is valued at 120,000 euros, but on a case by case basis, explains Mircea Draghici, project manager of the hotel division of the real estate agency CB Richard Ellis/Eurisko (CBRE).
The hotel’s take-up reached about 50% in the first months after its opening, which took place last summer. The hotel market is currently facing a severe decline in the number of guests, because of the recession.
Bucuresti Turism, the owner of the Radisson SAS had 121 million euros in assets and 77 million euros in debts at the end of last year. The company posted 15.5 million-euro turnover and 17.8 million-euro losses in 2008. Its value on the Stock Exchange stands at 22 million euros.