The Oscar Maugsch Palace, a Class A historical monument located in Bucharest’s University Square, has been officially put up for sale by its current owners, the Israeli Dayan family. Although the building has been the subject of an extensive plan to convert it into a luxury hotel under the Sofitel brand, the investors have decided to abandon the project and are currently negotiating with potential buyers, most of them local investors.
The Dayan family acquired the historic building in 2019 through the real estate vehicle Vivion, with the transaction price amounting to almost EUR 28 million, an amount that exceeded the initial valuation by about 40%. The development strategy aimed to transform the palace into a five-star hotel, with the investment required for restoration and functional conversion estimated at around EUR 20 million. The architectural design, by Tel Aviv-based Ran & Morris in collaboration with Romanian firm Cumulus, proposed the unification of the two historic parts of the building to create a coherent complex with 157 rooms, two restaurants, an events hall and a spa.
Despite the fact that the local authorities authorized the restoration project in 2025, which provided for the consolidation and adaptation of the premises to modern tourist standards, the owners have given up the execution. Vivion representatives did not offer official comments on the decision to sell. The building, erected in 1906 on the site of the former Suțu Palace gardens, is of major historical importance as the former headquarters of the “Generala” insurance company and an urban landmark popularly known as the “building on the horse’s tail”.
The investors, the Dayan family, control the Vivion Group, which owns a real estate portfolio valued at approximately 4.1 bn. EUR 4.4 billion, concentrated in the German and UK markets, with mainly hotel and office assets. Locally, the family’s portfolio also includes two class B office buildings in Bucharest. The business is run by Amir Dayan, whose wealth is estimated at over €1.34bn. EUR.