Hilton refuses to forecast higher growth amid crisis

Friedrich Niemann (pictured above), general manager of Bucharest’s 5-star Athenee Palace Hilton hotel, believes the hotel market will see demand shrink as an effect of the financial crisis, however, the real impact remains difficult to assess under the current conditions. He reveals that Hilton started feeling the crisis fallout in September. “We began recording a lower occupancy rate, of several percentage points, in autumn,” he explains. Still, Hilton’s manager says the unit is on target for this year’s projected budget. “We are on schedule with our revenues, but we have no idea what will happen in 3 to 6 months. For next year we have not forecast any increases in our budget. It’s very hard to conceive a strategy in a crisis situation. We’ll stay open and plan to adapt to the market. I believe we’ll profit from the fact that we are a renowned brand,” specifies Niemann. Hilton last year generated turnover worth around 21m euros. “Around 80% of revenues come from the business segment and the remaining 20% from leisure, but I doubt this rate will continue next year,” Niemann says, explaining that over 90% of customers still come from abroad. Even in a time of crisis, the hotel chains present on the market want to affiliate new units. As a result, Hilton still intends to bring other hotel brands to Bucharest and other Romanian cities.