Radu Enache, Continental Hotels: Average price per room is a nightmare

Continental Hotels chain that operates 14 hotels on the Romanian market and is controlled by businessman Radu Enache, in the first three months of this year posted 6% smaller turnover in RON compared with a year ago. The turnover decrease made the businessman halt hiring and freeze salary hikes and pay employees on sole trader contracts. Turnover dropped by 6% from the first quarter of 2009, and by 18% from budgeted estimates,” stated businessman Radu Enache, without specifying the absolute value of first quarter turnover. Last year, the 14 hotels derived 21m-euro turnover, down 19% year-on-year. “It will be very difficult for us to recoup first quarter losses and achieve the budget forecast for this year given that the travel industry will be the last to recover from the crisis as the first budgets to be slashed were travel and accommodation ones,” said Enache. The average occupancy rate of Continental chain hotels reached 46% in the first quarter of 2010, similar with last year’s. “The average price per room is a nightmare, it was even lower than last year’s,” specified Enache.