Sofitel anticipates 6% fall in turnover

For the first time in its history, the Bucharest-based four-star hotel Sofitel, controlled by Accor, estimates a 6% fall in this year’s turnover. The hotel, which has a 202-room capacity, closed 2006 with turnover worth 10 million euros, up by approximately 1 million euros against 2005. “We were satisfied with the turnover derived last year. But this year we will face a greater challenge. If we manage to maintain the performances registered in 2006, despite new competitors that will enter onto the market, it means that the market is extremely strong. However, I chose to let Accor know that they should remain extremely cautious,” said the hotel’s general manager, Bruno Vinette. According to Vinette, the decline in turnover is a result of the stagnation of the market over the first half of the year, as well as the new hotels that plan to open throughout the year. The new hotels will include Radisson SAS and at least three Ramada hotels, which could offer over 1,000 rooms in total. The first signs indicating a difficult year ahead have already appeared, namely the weak figures derived over the first month, in comparison with those of January 2006. “It seems there are less business clients coming to Romania at the moment. The EU integration also seems to have generated a period of stagnation, the “we will wait and see what happens” type, because some things are not settled yet. Business clients are sceptical, vigilant and have high expectations,” explains Vinette.