Aro-Palace Braşov (ARO), a tourism company controlled by Transilvania Investments (TRANSI), reported a net profit of 34.7 million RON for the first nine months of the year, significantly higher than the 0.3 million RON reported in the same period last year, following the sale of the Coroana-Postăvaru hotel in July.
The hotel was acquired by Elevate Properties SRL, following a public auction, for approximately 9.4 million EUR.
For the first nine months of the year, ARO-Palace Braşov reported operating revenues of 70.7 million RON, well above the 18.3 million RON from the January-September 2022 period, but the net turnover, which excludes the money from the sale of the Coroana-Postăvaru hotel, amounted to 22.9 million RON, 33% higher than in the first three quarters of last year.
Personnel expenses amounted to 8 million RON, 41% higher than in the first three quarters of last year, while other operating expenses were 12.5 million RON, compared to 5 million RON in the equivalent period of last year.
In the summer, Aro-Palace Braşov announced the completion of talks for the Capitol hotel to join the Mercure brand of the French group Accor.
The company will invest over 11 million EUR in the hotel’s rehabilitation, a process that will take place in stages until the hotel reopens in 2025.
At mid-year, Transilvania Investments held 86% of the Braşov-based tourism company, while SIF Muntenia held 10% of ARO-Palace Braşov.
Frequently Asked Questions
What was the transaction value for the Coroana-Postăvaru hotel?
The hotel was sold to Elevate Properties SRL for approximately 9.4 million EUR via a public auction.
How did the sale affect Aro-Palace’s net profit?
The sale significantly boosted the company’s net profit to 34.7 million RON for the first nine months, compared to just 0.3 million RON in the previous year.
What are the future plans for Hotel Capitol?
Aro-Palace will invest over 11 million EUR to rehabilitate Hotel Capitol and rebrand it as a Mercure hotel by 2025.