EUR 40 million investment prepared by the owner of the Continental chain

Businessman Radu Enache, the owner of the Continental chain, is not giving up his investment plans, although revenues have fallen by 68% this year.

Thus, it intends to invest in the next 4 years about EUR 40 million in the opening of two hotels, in Iasi and Brasov, and in the rebranding of the four hotels it owns under the name Ibis, which will be transformed into My Continental and Forum .

Continental Hotels and the French group Accor have agreed to conclude, after 20 years, the management agreement signed 20 years ago. According to this agreement, starting with July 1, 2020, four hotels owned by Continental Hotels no longer operate under the Ibis brand, namely Ibis Gara de Nord, Ibis Parlament, Ibis Constanța and Ibis Sibiu.

The occupancy rate of the hotels owned by Radu Enache decreased during this period to below 40%, compared to 75-80% last year. At the same time, hotel revenues decreased by 68%, being strongly influenced by the fact that restaurant interiors continue to remain closed.

Against the background of this crisis, the hotel chain had to give up 538 employees.