“In five years I believe we will have five hotels on the domestic market. The market has grown very much over the last two years; it would have been a perfect time to enter back then, but now investors are more willing to invest,” said Kurt Strohmayer, general manager of Marriott Romania.
The Marriott chain is currently in talks with developers and is set to sign at least one contract by the end of the year.
The Marriott Hotel in Bucharest is one of the most profitable in Europe, and is also situated among the top revenue-generating countries.
Societatea Companiilor Hoteliere Grand (SCHG), which owns Marriott Hotel in Bucharest reported 40 million euros in turnover, an increase of 8% against the previous year and over 11 million-euro losses in its filings with the Finance Ministry. However, SCHG officials would not comment on the cause of these losses.
SCHG controls the accommodation facilities, conference rooms and restaurants inside Marriott, as well as the shopping galleries, where, as of this year, the luxury brand Louis Vuitton has been present.
“The shopping gallery inside the Marriott is seen as a sort of luxury mall. We will continue to bring luxury brands such as Gucci and Patek Philippe,” declared Strohmayer.
“There is still room on the market for everybody. The growth is tightly related to the economic trend and if the economy maintains this positive trend, our business will also grow,” explained Strohmayer.
The five-star market continues to rely on business travel, which generates over 80% of revenues of hotels on the market. In Marriott’s case, the leisure segment stands at 4 to 10% of the total.