August, Worst Month In 10 Years For Bucharest Hotels – Consultant

„Results were below the most pessimistic expectations,” Trend Hospitality manager Tinu Sebesanu told Mediafax Thursday.

Seven of the biggest 4- and 5-star hotels in Bucharest recorded in August a 34% drop in revenues per room, from EUR53 to EUR35.22, while their revenues fell to EUR2 million from EUR3.07 million in the same month of 2008.

Also, the demand for events halved compared with the same month a year earlier.

Overall, Sebesanu estimates that the hotels’ sales will drop 25% this year and their target is to break even in 2009.

In his opinion, independent hotels will be more affected by the downfall compared with the ones affiliated to international chains.

As for lowering prices, Sebesanu said this measure is not a solution because it will lead to service quality worsening in the long-term.

More than half of hotel companies’ projects have been postponed due to the economic crisis and lack of funds, he added.

„We used to work on ten projects at a time and we now have only five … Brands have the same appetite to enter the [local] market, but they have no one to partner up with because of the psychological fear, the risk and the financing,” Sebesanu said.

Trend Hospitality is the strategic partner in Romania of U.S. hotel group Wyndham, one of the main franchisers within the tourism sector worldwide, its brands including Howard Johnson, Days Inn, Ramada and Wyndham.