Hotel investments to exceed 420m euros

Investment in the hotel industry in Romania could exceed 420 million euros this year, following the 390 million euros of investments in 2004. More than half of the works will be for the modernisation of older accommodation facilities.

“The value of the investments in the hotel industry rose some 42% last year. Modernisation projects accounted for 65% of the total capacity, or 56% in terms of value,” said Paul Marasoiu, chairman of Peacock Hotel Management advisory firm. Of the investment projects to be completed this year, most are in Bucharest and involve construction or modernisation of three-star hotels, though there is a rising interest in the four-star segment. There will also be new projects in Timisoara, Arad, Oradea, Cluj, Sibiu, Alba-Iulia, Iasi and Constanta, as well as at health resorts and in the Danube Delta. “The number of projects will continue to rise, though the concept will be more thoroughly evaluated before the investment begins,” added Marasoiu . ZF