Businessmen Daniel Guta and Sorin Melinte are in advanced negotiations with the owners of the Lido Hotel in Bucharest to lease it for a long period of time.
The descendants of Doctor Constantin Angelescu, who built the hotel in the 1930s, reclaimed it and won it definitively in court in 2010, after waiting 17 years and reportedly spending $1 million on lawsuits. Immediately after being taken over by the heirs, the hotel was closed.
There were rumors on the market that the Lido Hotel was up for sale for €60 million, but businessmen Daniel Guta and Sorin Melinte proposed to the owners to lease the building for 15 years, invest over €8 million in its renovation and modernization, and turn Lido into a luxury hotel, as it once was.
Market rumors suggest that the two offered the hotel owners a rent of €60,000/month, an amount the businessmen do not wish to confirm.
Sorin Melinte built a hotel in Bucharest on Calea Mosilor in 2004, also owns a construction company in Bucharest, Armonia Constructii, and several companies in Spain, including a concert organizing company, Sociedad Musical Armonia Spain, and a tourism company, Viajes Armonia Spain. Daniel Guta is a shareholder in several companies in Constanta, with activities in tourism and real estate, as well as a company operating in the port.
For the Lido project, they planned to create a separate entity, a specially established SPV, which will be represented by the two.
Daniel Guta specified that he intends to develop a hotel chain in Romania, together with his partner, which will include at least two hotels in Bucharest, one on the coast, another in the mountains, and the rest in county capital cities.
“We are in advanced negotiations to finalize the lease agreement for a minimum period of 15 years,” stated Guta, who claims that some of the six heirs already agree with the proposal, while he is still discussing with the others. He hopes to sign the contract by mid-May.
Part of the over €8 million sum for renovation and modernization will come from own sources, and the other part from financing. Daniel Guta stated that there are already several offers, especially from foreign investment funds, particularly from Israel, but also an investment fund from Spain that also operates in the hotel sector.
The investors estimate between 6 months and 1 year for the period necessary to obtain permits, after which they need another year for all modernization works.
The 119 rooms will be completely rebuilt from scratch and refitted, but the facade will be preserved with minor changes. The two investors are already discussing partnerships with several HoReCa operators, but there will also be an “a la carte” restaurant, which will remain under the hotel’s management.
“It will be 5 stars superior ultra high class, above any standard currently in Romania. We believe that the Lido brand and trademark have a lot of notoriety, and the hotel has an excellent position. It will not be a business or traffic hotel, but a flagship, luxury hotel,” explained Daniel Guta.
The project will be implemented and managed by Lucian Marinescu through the company Trend Hospitality.
The Lido complex – the hotel and the Monteoru House – was built by Doctor Constantin Angelescu between 1905-1930 on land purchased together with his wife, Virginia Constantinescu Monteoru, in 1904. Constantin Angelescu died in 1948, at age 79, leaving behind four daughters and a son.
Source: Profit
Frequently Asked Questions
Who are the investors planning to renovate the Lido Hotel?
Businessmen Daniel Guta and Sorin Melinte are currently negotiating the lease and modernization of the hotel.
What is the estimated investment for the project?
The planned investment for the complete renovation and modernization of the hotel exceeds €8 million.
What will be the hotel’s classification after the renovation?
The investors aim to transform Lido into a 5-star superior ultra high-class hotel, setting a new luxury standard in Bucharest.