EUR 9 mln Mercure hotel opens this November in Bucharest

Newsroom 11/11/2014 | 17:04

The four-star Mercure hotel in Bucharest will open on November 17 following a EUR 9 million investment and expects an annual turnover of between EUR 600,000 and EUR 700,000, said representatives of the Dogariu family which owns the hotel, during a press-conference this Tuesday.

The Dogariu family owns a dental clinic in Bucharest – Dentotal Clinic – and has also invested in the import and distribution of dental equipment. Last year this generated EUR 10.6 million and a similar level is expected for 2014, according to Anghel Dogariu.

The owners’ only other real estate investment is a five-storey office building where the Dentotal group of companies are headquartered. Should the Mercure hotel post positive results, the Dogariu family is considering similar investments.

The 114-room Mercure hotel is located on the George Enescu Street in downtown Bucharest close to the Romanian Athenaeum. The owners expect the hotel to generate an annual turnover of about EUR 600,000 – EUR 700,000 and to recover the EUR 9 million investment in about seven to ten years. Out of the entire sum invested, EUR 6 million is a credit given by Garanti Bank.

Mercure is a non-standardized midscale hotel brand owned by Accor. The French group will ensure the hotel’s management and has appointed Alina Fugaciu as general manager. She expects the hotel to post an average occupancy rate of at least 50 percent in the first year of activity. In addition to the 114 rooms, the hotel also features three conference halls and a restaurant. Room rates start at EUR 65/night.

Accor is present in Romania with six other properties. It operates four three-star Ibis hotels, which have a combined 760 rooms and 24 conference halls. Two of the four units are located in Bucharest, Ibis Gara de Nord (opened in 2001) and Ibis Parliament (2005), and the other two are in Constanta (2005) and Sibiu (2009). The hotels are run in partnership under a form of management contract with Continental Hotels which owns the properties. The group also manages a Novotel and Pullman hotel in the capital.

Accor currently manages a network of approximately 750 Mercure hotels in 50 countries.

Simona Bazavan

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