Hotel operators looking for $100m

Tourism operators see 2003 as a time to consolidate hotel operations and restore accommodation structures, estimating that investments in hotels will exceed $100 million.
Many companies have already announced significant investments in building new hotels or in refurbishing those they already own, with the establishment of domestic hotel chains scheduled in some cases. Until last year, the only such chain was controlled by the Continental Company and comprised ten units. The Unita Turism officials and even SIF (Financial Investment Company) Transilvania by the end of last year said they would establish their own chains, which would require significant investments.
Mihai Rajnita, general secretary of the Romanian Hotel Industry Federation (FIHR) says the hotel operators have to invest “at least $100 million in rehabilitation, now that privatisation is over, and in completing the ongoing investments. The banks will make a positive impact in this regard, as they will expand their credit and leasing system,” he specified. Rajnita estimates the total investments might amount to $200-$300 million.
Dragos Raducan, general secretary of the Romanian Tourism Patronage Federation (FPTR) has a similar opinion. “The investments will be higher than last year, because of privatisations,” he says. Tourism Ministry statistics show 62 new hotels totalling 1,500 rooms and some 700 boarding houses totalling 3,500 rooms were built last year, in addition to the refurbishment of old hotels, with investments amounting to more than $150 million.
Moreover, “tourism is not comprised only of hotels, but also of restaurants, leisure and the infrastructure,” Rajnita says. These areas might also attract millions of dollars in investments.
The most significant investments were again announced by the major tourism operators, in addition to several newcomers, such Cocor or Marshal Turism travel agency, held by Ion Antonescu, state secretary within the Ministry of Culture and Cults.
The Continental chain is to begin construction works on two new hotels this year, along with the refurbishment of the Bulevard Hotel in Sibiu, leased by the Metropolitan Church of Transilvania. The budget for these projects amounts to $17-$18 million in 2003 alone.
SIF Transilvania, one of the biggest investors in Romanian tourism, is planning to invest $20 million by yearend, chairman Mihai Fercala says. SIF Transilvania is planning to combine all its seaside hotels in a chain and to merge several companies it controls, Eforie, Saturn and Venus included.
Businessman George Copos, owner of the Ana Group, said that investments in the retooling of Europa and Astoria, the hotels he holds in Eforie Nord resort, amounted to about $15 million. When the works are completed, Europa will be ranked as a four-star unit and Astoria will get three stars.