Radisson SAS falls below estimates two months after opening

Radisson SAS hotel in Bucharest, the newest five-star hotel on the Romanian market has a 50% occupancy degree a few months after its opening, below the original estimate, due to the negative impact of the financial turmoil on business travel. “The occupancy degree was slightly lower than we expected, due to the financial crisis, which generated a decline in demand,” said Torbjörn Bodin, general manager of Radisson SAS. Several hotels in Bucharest have recorded declines in the occupancy degree over the past few months due to the crisis. According to a survey by Deloitte consultancy, Bucharest hotels have seen the second deepest decline in terms of occupancy degree in Europe in the September 2007 – September 2008 period, against September 2006 – September 2007. Therefore, the average occupancy degree in Bucharest hotels fell to 61%, by 14%. Radisson is close to this average, although it has been officially open for just two months, having operated at limited capacity during the summer.