The shareholders of Aro Palace Brasov have approved an increase in the budget to transform the Capitol Hotel into a Mercure-branded establishment. The value of the investment rises to EUR 16.76 million, up from the initial estimate of EUR 13.51 million set at the beginning of the year.
The budget increase is explained by:
- incomplete building condition assessment;
- underestimating costs in the absence of detailed bids from contractors;
- legislative changes that have resulted in higher prices for labor and materials.
According to the business plan, the payback period is estimated at 13 years.