The sale of the Coroana-Postăvaru hotel massively increases Aro-Palace's profit in the first three quarters of the year

Aro-Palace Braşov (ARO), a company with a tourism profile controlled by Transilvania Investments (TRANSI), reported a net profit of 34.7 million lei for the first nine months of the year, well above the 0.3 million lei in the same interval of last year, given that in July it sold the Coroana-Postăvaru hotel, as it appears from a report of the issuer published on the website of the Bucharest Stock Exchange (BVB).

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. This strategic realignment will strengthen our position on hotel market in Braşov and will allow us to more agilely approach the opportunities offered by it", said then Radu Roşca, the executive president of Transilvania Investments.

For the first nine months of the year, ARO-Palace Braşov reported operating revenues of 70.7 million lei, well above the 18.3 million lei from January-September 2022, but the net turnover (which does not includes the money received on the Coroana-Postăvaru hotel) amounted to 22.9 million lei, 33% more than in the first three quarters of last year.

On the other hand, operating expenses were 28.9 million lei, up 62% compared to those from January-September 2022. Personnel expenses amounted to eight million lei, 41% above those of the first three quarters of last year, while other operating expenses were 12.5 million lei, well above the five million lei, from the equivalent period of last year.

In the summer, Aro-Palace Braşov announced the completion of discussions for the accession of the Capitol hotel to the Mercure brand of the French group Accor. The company will invest over eleven million euros in the rehabilitation of the hotel, a process that will take place in stages, until the reopening of the hotel in 2025.

In the middle of the year, Transilvania Investments owned 86% of the company with a tourism profile in Braşov, while SIF Muntenia owned 10% of ARO-Palace Braşov.