Continental projects turnover worth 23m euros

Continental hotel chain is targeting 23 million euros in turnover for next year, 22% higher than in 2004, when it reported turnover worth 18.7 million euros.

The evolution of its business in 2005 will be marked by the merger of all the units of the hotel chain into a single entity, an operation that is to take place early next year.

“In 2005, we count on consolidated turnover standing at 23 million euros, as the merger will be completed. The next step in the company’s strategy is to list its stock on the bourse,” stated Radu Enache, chairman of the chain.

This operation is also aimed at attracting additional financial resources, with Continental mulling investment projects worth 28 million euros over the next two years.

Thus, the company plans to build new hotels in Timisoara, Brasov and Cluj, and to modernise the units of Bucharest, Cluj and Sibiu.

“Over the next two years, we will carry investments of around 28 million euros. Our target is to have a four-star Continental hotel and a three-star Ibis hotel in each county,” stipulated Enache.

The investment programme will be backed up by the chain’s own sources and by banking loans. At present, Continental chain owns 14 hotels, with about 1,600 rooms.

Continental puts this year’s turnover at about 18.7 million euros, more than two million euros above the level reached in 2003, exceeding the projections issued at the beginning of the year.

Continental this summer sealed a partnership with French group Accor, the owner of Ibis, Novotel and Sofitel brands, through which the two companies will set up a hotel network in all the cities of Romania. Continental has recently bought some land in Timisoara, where it will build up, starting August 2005, an Ibis and a Continental hotel, and is in talks to acquire some land in Brasov and Cluj. Continental already owns a hotel in Cluj-Napoca, which will be modernised next year and included in the four-star category.

In the spring of 2005, Continental will finalise the construction of another two hotels, located in Bucharest and Constanta, with both units to function under the Ibis brand. The projects have been launched this year and are worth about 15.5 million euros.

“We hope to also take over the management of Bulevard the hotel of Sibiu next year. The hotel will be modernised, included under Continental brand and ranked as a four-star unit,” Enache said.
georgiana.stavarache@zf.ro