English
Reporter: Europa Royale Hotel is the first hotel which the group opened in Romania. What were the reasons which led to the decision to open a hotel in Romania and why did you open it in the Old Center of the Capital?
Giedre Straksaite: At the moment when the development of this project was decided, Romania was developing at an accelerated pace, as it was at the time a new EU member and therefore had a lot of prospects.
For Eastern Europe, we had to choose between locations from Bulgaria, Romania and Belarus, but, after watching all those countries, Bucharest seemed to have the biggest growth potential and the most stable political situation.
Why the old center? All the hotels of Europa Royale are situated in the old parts of the important cities. It is the concept which our hotels are developed around - preserve the historical buildings, in the most attractive locations, and make our guests feel the royal spirit with a modern touch.
Another reason is that the Old Center of Bucharest is beginning to live again, with most hotels being located in the central part of town. We are one of the first investors in the area which have established themselves in the old part of town and we are proud of it.
Reporter: What occupancy rate does the hotel have?
Giedre Straksaite: So far we have exceeded our expectations, and the occupancy rate was 65% in the first months. Starting next year, we expect an annual occupancy rate of 70%.
Reporter: What type of customers do you target?
Giedre Straksaite: Our main customers are the tourists which visit Romania for business. During the summer season, when activity in the business sector is lower, we also have tourists, mainly from Greece, Spain, Italy, Israel.
Reporter: How would you describe the hospitality market in Romania?
Giedre Straksaite: The hospitality market in Romania has seen an accelerated growth, especially in Bucharest. All the international hotel brands, such as Marriott, Radisson, Hilton, Novotel, Ramada, Intercontinental are already here. We are happy to work together with other brands and we believe that it is good for the country - such competition forces all the hotels to develop their services to the highest quality and at good prices. In the end, that is how the maximum satisfaction of customers is ensured.
As for the legislation in the sector, there is still a lot of work to do before Romania reaches the standards of the European Union. The legislative system is one of the reasons which sometimes leads to foreign investments getting stuck in red tape. However, we believe that in the future there will be a lot of changes for the better.
Reporter: How do you think that the hospitality market will evolve in Romania?
Giedre Straksaite: Romania has everything: mountains, seaside, the Danube Delta, ski resorts, beautiful castles, historic cities, amazing wines, the economy is growing, its nature is untouched, the population is numerous with many intelligent, educated people, - and we have found very little information about this country abroad. We think that the only problem is time - when will tourists and foreign investors find out about your country? When this will happen, of course, everyone will benefit, including the hospitality market.
Reporter: What kind of hotels have the highest occupancy, in terms of the number of stars?
Giedre Straksaite: Bucharest is mostly the city of businesspeople - therefore of those who usually choose 4-star hotels. But tourism is developing, which means that 2- and 3- star hotels also have a potential to grow.
Giedre Straksaite: Have any investments been done in the hotel industry lately?
Giedre Straksaite: Going through the old city, I can see every day that most of it is under construction. It means that there are investments being made in that area.
The hospitality industry, like in any other sector, has felt the major impact of the economic crisis, but it is beginning to turn around.
The hotel market is tightly connected to the country's economic potential - if you are going to develop into several sectors, you will need more hotels. Romania has a huge potential, and thus I think that there is still room for hotels.
The hotel market in Romania is rather full, but the hotel industry has enough room to grow in other major Romanian cities.
Reporter: What other countries do you have hotels in?
Giedre Straksaite: We have eight hotels, located in the baltic countries - Lithuania and Latvia. Our chain of hotels develops three brands - Europa Royale (four star hotels, focused towards the business segment), Europa City (hotels with average rates situated in good locations) and Europa Stay (for the tourists with lower budgets).
We intend to expand into the neighboring countries, in the near future.
Reporter: What are the differences between Romania and other European countries?
Each country has its distinctive features, which you need to get used to. Romania makes no exception. In order to mention some major differences - Romania has one of the biggest VAT rates in the EU, there is a difference in the mentality of people in this country and you have a high level of corruption.
Reporter: Can you also mention some weak points which the Old Center has in the center of Bucharest?
Giedre Straksaite: It needs to be mentioned that the old side of Bucharest is underdeveloped when it comes to entertainment, compared to other European capitals. For the moment, the old town is more known for its night life. It is a good location, because it has several tourist attractions, and the public institutions are nearby. But the Old Center, as it is today, it is not developed enough from a travel point of view - there are just a few renovated architectural tourist objectives. Art galleries, antique stores, museums or good restaurants are still in search of their place in the old center. But I believe that in the near future, the old city will change and will become the most important part of the city for the guests of Bucharest and for hotels.
Reporter: Thank you!
Euro
Dolar SUA
Franc elveţian
Liră sterlină
Gram de aur
