Competition remains tough for Bucharest's five-star hotels

Sonia Nastase, general manager at Howard Johnson Grand Plaza Bucharest talks to BR about how has the Bucharest’s hotel market evolved in 2012 and what can be expected of 2013.

Simona Bazavan

Have you noticed changes this year between the share of leisure and business tourism in Bucharest?

On our segment I can’t say we have seen substantial changes for leisure tourism in Bucharest. There continues to be room for growth on this segment but also for international events. With authorities’ involvement – in the sense of increasing the city’s attractiveness – we could have the right environment for more large-scale cultural, sports or entertainment events but also for new types of business events such as international exhibitions, ‘incentive’ meetings for large corporations and others. Bucharest could become this way one of the important options on the agenda of regional and international event organizers which in other European capitals bring important benefits both for the hotel industry but also for other local service and consumption industries.

How was 2012 for Bucharest’s five-star hotel industry?

In 2012 the four- and five-star hotel industry in Bucharest was extremely competitive and we expect the same will apply in 2013 as the battle for market share remains tight given that demand continues to be moderate in relation with the offer.

How have the hotel’s sales evolved this year and what was the average occupancy rate?

Although 2012 had its particularities in terms of the mix and services bought, up until this moment revenues are similar to the ones reported in 2011. The demand’s moderate dynamics was maintained in close correlation with the overall economic context both in Bucharest and Europe. The average occupancy rate this year is around 50 percent and we also see a price stabilization which reflects a focus on maintaining the quality of the services offered.

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