Aro-Palace - profit of 35 million last year, against a loss in 2022

Aro-Palace Braşov (ARO), a company with a tourism profile controlled by Transilvania Investments (TRANSI), reported for last year total revenues of 80.5 million lei, 125% more than the previous year, while the net profit rose to 35.2 million lei, compared to a loss of 0.7 million lei in 2022, according to the company's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

After the first nine months of 2023, the company had reported a net profit of 34.7 million lei, given that, in July, it had sold the Coroana-Postăvaru hotel. The hotel was purchased by Elevate Properties SRL, following a public auction, for the price of almost 9.4 million euros, according to a press release from the tourism company.

"The completion of the sale process of the Coroana hotel allows us to focus our resources on the main assets of Aro-Palace, with a focus, in the next two years, on the reopening of the Capitol hotel, completely renovated, under a new brand", Radu Roşca said then, the executive president of Transilvania Investments.

For the past year, the operating income of Aro-Palace Braşov amounted to 78.9 million lei, of which the turnover was 30.9 million lei, 19% more than the previous year. Operating expenses were 37.9 million lei, up 6% compared to 2022. The operating result amounted to 41 million lei, and the financial one to 1.5 million lei, well above the 0 ,26 million lei from 2022.

Last December, SIF Muntenia sold its holding of around 10% of the tourist company to Winners First SRL, as can be deduced from the BVB reports.

According to Economica, Winners First is owned by Winners Holding Investments whose majority shareholder is Castorius Limited of Cyprus. Castorius Limited is the investment vehicle through which the president of Transilvania Bank, Horia Ciorcilă, manages his business.

In the middle of this month, Aro Palace announced the signing of a letter of intent to enter into a franchise agreement with Hyatt Hotel Corporation, following which the Aro Palace Braşov hotel will enter the international family of hotels of the Hyatt brand.

Transilvania Investments owns 86% of the company with a tourism profile, whose stock market valuation amounts to approximately 160 million lei.