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Radu Enache from the Continental – about the hotelier market and crisis rates

  The businessman Radu Enache who controls the hotelier chain Continental, with almost 2000 rooms and businesses of about 27 millions euro only last year, says that he has made a super crisis scenario that involves the immediate closure of a hotel once it becomes unprofitable.

“Four and five stars hotels from Bucharest became three stars hotels, according to the rates they practice. Marriott competes now with my hotel, the three star hotel Ibis Parliament. We lowered the rates at the beginning of the year, but we can’t go lower than our costs”

Said Enache, that charges at a three star hotel with an average of 60 Euros per room, discounts included.

The chain Continental Hotels had recorded a loss of almost 2.8 million Euros only last year, according to the info on the Finance Ministry’s official web site.

Regarding the rates politic that Marriott has in this period of the year, the representatives of the five star hotel said that any hotels chain is free to orient and adapt its pricing policy to the market condition.

Enache also said that he initially thought that the economical hotels (the two or three stars ones) will have more to gain because of the low rates, but the discounts rates from the five stars hotels changed this situation.

Source: www.zf.ro

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