Golden Tulip looks beyond Bucharest

Golden Tulip, already operating four hotels in the capital city, plans to franchise between 12 and 14 hotels outside Bucharest by the end of 2006, stated Paul Marasoiu, a regional manager of Golden Tulip Hotels, Inns & Resorts for Romania and Moldova.

“We already have ten projects under assessment, in Brasov, Sibiu, Arad, Cluj-Napoca, Tulcea, Azuga, Bran and Suceava,” says Marasoiu. Given these development plans, Golden Tulip is set to become the biggest hotel chain in Romania.

“The expansion of the Golden Tulip franchise outside Bucharest is a natural part of our chain development programme and is, as a matter of fact, a move that has been made by all franchisers present in Romania, Golden Tulip, Best Western, Cendant/Ramada,” the Golden Tulip representative specified. In the particular case of Golden Tulip, he added, after making a strong entry onto the Bucharest market through the franchising of four properties in a single year, the company has voiced its interest and made all the necessary moves to expand the franchise countrywide, starting with major urban centres and touristic regions with a high growth potential. Other chains operating outside Bucharest are Best Western (with six hotels), Accor (with one hotel in Constanta) and NH Hoteles (with one hotel in Timisoara).

“Perhaps in 2007, should we identify an opportunity in a suitable geographical area, we might franchise another location in Bucharest,” Marasoiu also said.

Golden Tulip already has four franchised hotels in Bucharest, but the most recent, Tulip Inn Bucharest City, is not yet operational.

Regarding this hotel, Marasoiu says he expects an average occupancy rate of at least 60%, in its first operational year. The other affiliated hotels have each reached occupancy rates of more than 50% (Golden Tulip Sky Gate exceeded 75%, Golden Tulip Bucharest – Victoria Tour around 80%, and Golden Tulip Times, opened this August, almost 60%). For Golden Tulip Sky Gate, Marasoiu forecasts turnover worth 2.5 million euros for 2005.

The hotel market along the business segment has been highly profitable this year, with several international chains entering Romania with at least one hotel, while others have expanded. According to analysts, investments in the hotel industry are likely to top 420m euros this year.