The luxury hotel brand Sofitel is returning to the Romanian market, to operate a new 5-star hotel in the historic Oscar Maugsch Palace in University Square. The project is being developed by the Dayan family from Israel, who recently finalized the design for the transformation of the former headquarters of the Romanian Commercial Bank into an elite accommodation facility, thus strengthening their local real estate portfolio.
The future hotel will have 157 rooms spread over four floors, complemented by two restaurants, a spa and a multi-purpose events hall in the bank’s former exhibition space. The design brief was won by Israeli firm Ran & Morris, who worked with local architectural firm Cumulus. The central concept of the project, described as an “expression of French luxury seen through the unique historical prism of Bucharest”, is based on the theme of “Little Paris”. The architects drew up plans for the unification of the building’s two bodies: the original late 19th-century structure and the early 20th-century extension. The building permit for the project was signed by the Mayor General Nicușor Dan.
The Dayan family acquired the property in 2019 from BCR through an investment vehicle managed by its real estate group Vivion. The value of the transaction amounted to almost €28 million, which exceeded the initial valuation of €20 million by about 40%. In addition, the investment to consolidate and restore the building – also known as the Palace of the “Generala” Insurance Company or the “horse’s tail” building – was estimated at €20 million. The building is a Class A historical monument dating back to 1906.
The return of Sofitel marks an important moment for the French group Accor, the leader of the Romanian hotel market, which owns brands such as Pullman, Mercure and Novotel. Sofitel was one of the first major hotel chains to enter Romania after 1989, operating the hotel at the World Trade Center (now Pullman) between 1994 and 2009.