The State Protocol Heritage Administration, RA-APPS, recorded a loss of 8.45 million RON in 2015. This loss was generated by the negative results of other assets in its portfolio, such as the Spring Palace (Palatul Primăverii), the former residence of the Ceaușescu family recently converted into a museum but with lower-than-expected initial receipts, and the Vlăsia agro-zootechnical complex in Snagov commune, a failure of sales attempts since 2007.
Club Floreasca and Hotel Triumf, belonging to the State Protocol Heritage Administration, RA-APPS, recorded cumulative losses of approximately 3 million RON.
The hotel, classified at 2 stars and with an area of almost 6,000 sqm, is located on a 15,000 sqm plot of land near Kiseleff Blvd. in the capital, and has 98 rooms and suites on 4 floors, a restaurant with a capacity of 120 seats, and a summer garden with 60 seats. The loss recorded at the Triumf hotel, amounting to 1.089 million RON, results from the extremely low occupancy rate of under 20%, calculated for the entire past year.
The building was put up for sale for the first time in 2007, at a starting price of 32.5 million EUR plus VAT, but the auction was stopped in court after the company Athenee Phenix Group challenged the procedure.
In October 2014, the Government put the hotel up for auction again, but so far it has not received any purchase offers, even though it has lowered the price over time, from 19.6 million EUR to 15.9 million EUR and, subsequently, to 14.1 million EUR plus VAT.
At Club Floreasca, the loss of 1.9 million RON is divided between the club’s restaurant – 498,333 RON and the club itself, with massage and leisure services – 1.4 million RON.
Over the course of a year, between January 2007 and January 2008, RA-APPS officials put the Club up for sale 5 times, from an initial starting price of 41.65 million EUR, including VAT, reducing the price to 38.7 million EUR, but each time there were no bidders for the club.
Source: Profit
Frequently Asked Questions
What was RA-APPS’s total loss in 2015?
The State Protocol Heritage Administration recorded a total loss of 8.45 million RON during 2015.
Why did Hotel Triumf record significant losses?
The loss of 1.089 million RON was primarily due to an extremely low occupancy rate of under 20% and multiple failed auction attempts.
Which other assets contributed to the negative financial results?
Other loss-generating assets included the Spring Palace (Palatul Primăverii), the Vlăsia agro-zootechnical complex, and Club Floreasca.