Heavy H1 losses for owners of Intercontinental and Radisson luxury hotels

Companies that own Radisson and Intercontinental five-star hotels of Bucharest in the first six months of this year registered cumulated losses of 7.6m euros (32m RON), 3.7 times higher than in the same period of last year. Their representatives would not comment or were not available for comment. Hotel owners’ rising losses come as occupancy rates have plunged amid the international crisis, especially in the case of 4 and 5-star hotels. Thus, last year alone, Bucharest hotels saw their occupancy rates go down by 19.6% to 57%, one of the steepest falls among European countries. Turism Bucuresti (BUTU), whose main asset is Radisson hotel, saw its losses deepen 3.7 times in H1, to 6.3m euros (26.2m RON), despite its turnover advancing 2.3 times to 10.9m euros (45.9m RON). On the other hand, Intercontinental Bucuresti owning and managing the hotel of the same name, saw its losses rise to 1.3m euros (5.7m RON) in H1, up more than 6 times from a year ago.