{"id":120328,"date":"2019-02-11T00:00:00","date_gmt":"2019-02-10T22:00:00","guid":{"rendered":"https:\/\/rhn.ro\/blaxy-hotel-complex-has-entered-insolvency\/"},"modified":"2026-03-27T20:24:05","modified_gmt":"2026-03-27T18:24:05","slug":"blaxy-hotel-complex-has-entered-insolvency","status":"publish","type":"post","link":"https:\/\/rhn.ro\/en\/blaxy-hotel-complex-has-entered-insolvency\/","title":{"rendered":"Blaxy Hotel Complex Has Entered Insolvency"},"content":{"rendered":"
Periodic property, a concept introduced in 2011 in the new Civil Code, which allows multiple individuals to successively hold ownership rights over a dwelling, was launched with great enthusiasm on the local market but quickly stalled: the operator that launched with high hopes in this niche has entered insolvency. <\/div>\n
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According to a Profit.ro analysis, the reasons leading to insolvency include insufficient promotion, modest feedback from the first owners and tourists, low scores on Booking and TripAdvisor, and services perceived as being of mediocre and poor quality. <\/div>\n
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Periodic property represents, according to the definition in the Civil Code, a modality of ownership within which each holder exercises the prerogatives of their ownership right in their own name and personal interest for determined periods, which repeat successively and perpetually at regular intervals, involving at least two holders, whether natural or legal persons.<\/div>\n
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The operator that premiered in this niche, Blaxy Premium Resort & Hotel, was established in 2014 with the aim of building and developing a residential and tourist complex under a periodic property system in the locality of 23 August, Constanta County, north of the Olimp resort. Construction work also began in 2014, and the first owners were welcomed in the summer of 2015, following the inauguration of the first 3 building sections and tourist facilities. The residential tourist complex included 540 rooms with a private beach, four outdoor pools, a restaurant, outdoor terraces and bars, an amphitheater for outdoor performances, and parking.<\/div>\n
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Thousands of Romanians, as well as foreigners, decided to purchase the right to be owners for life, for a single week a year, of an apartment in a seaside resort. Large companies also bought apartments where they send their deserving employees. Last year, the Blaxy resort began selling apartments in installments as well, in a system that allows tourists to use the dwelling year after year, during the same week, for life.<\/div>\n
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The operator entered insolvency with total debts in 2017, according to termene.ro, of over 52 million RON, long-term debts as of September 30, 2018, of 7.4 million RON, a lack of liquidity, and business declining by 3.9% in 2017 and by 52.4% in 2018, compared to the previous year.<\/div>\n
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In the first nine months of last year, the company recorded a turnover of only 41.7% of that in 2017, noting a serious slowdown in periodic property sales.<\/div>\n
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In 2017, according to the latest data reported to the Ministry of Finance, the operator, with 40 employees and controlled by Turkish businessman Oguz Yilmaz, had a turnover of 7.9 million RON and a loss of 2.6 million RON.<\/div>\n
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1.\t<\/span>The company failed to sustain the pace of partial property sales in 2018. This was due to hotel and catering services falling below the expectations of tourists from previous years, as well as gaps in the financing of marketing activities.<\/div>\n
2.\t<\/span>Due to the novelty introduced to the real estate market by this project, potential buyers do not yet have a similar reference point, both regarding the purchase price and the transferability and evolution of the market value of such periodic properties. The fact that the project was not sufficiently well-promoted in a way that everyone could understand also contributed to this conclusion.<\/div>\n
3.\t<\/span>TBI Leasing’s financing did not meet the debtor company’s needs, with divergences existing between the two parties due to scheduling and the method of calculating installments and interest invoiced by TBI.<\/div>\n
4.\t<\/span>In parallel with the sale of fractions, the company entered the normal tourist circuit. Analysis of tourist information media shows that the hotel and catering services offered by Blaxy did not live up to the expectations of tourists on the Black Sea coast, and Blaxy failed to create a significant impact on the seaside hotel market through its quality-price ratio.<\/div>\n
5.\t<\/span>Weather conditions in the summer of 2018, with a rainy July, shortened the normal season by nearly 4-6 weeks, which harmed the company by reducing revenue from service provision.<\/div>\n
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In practice, the company was forced to expand its scope of activity for additional cash flow and began renting available apartments in a hotel regime, affecting customer perception by distorting the image intended to be created\u2014namely, that of a complex where residents are owners and not simple tourists.<\/div>\n
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However, optimism is maintained and, given the potential and attractiveness of the innovative partial property concept, it is estimated that Blaxy has real chances of overcoming the financial impasse it faces, running a profit-generating activity, and fulfilling the provisions of a potential reorganization plan.<\/div>\n

Source: Profit<\/a><\/p>\n

Frequently Asked Questions<\/h3>\n

What is periodic property in the context of the Romanian Civil Code?<\/strong><\/p>\n

Periodic property is a legal framework where multiple owners hold successive rights to a property for specific, recurring intervals, typically used for vacation homes.<\/p>\n

Why did Blaxy Premium Resort enter insolvency?<\/strong><\/p>\n

The main factors included poor service quality leading to negative reviews, insufficient marketing, financing disputes with TBI Leasing, and a slowdown in sales of the periodic property units.<\/p>\n

What is the future outlook for the Blaxy complex?<\/strong><\/p>\n

Despite the insolvency, there is optimism that a reorganization plan based on the innovative nature of the project could help the complex return to profitability.<\/p>\n","protected":false},"excerpt":{"rendered":"

Periodic property, a concept introduced in 2011 in the new Civil Code, which allows multiple individuals to successively hold ownership rights over a dwelling, was launched with great enthusiasm on the local market but quickly stalled: the operator that launched with high hopes in this niche has entered insolvency.  According to a Profit.ro analysis, the…<\/p>\n","protected":false},"author":0,"featured_media":67562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2859],"tags":[],"thb-sponsors":[],"class_list":["post-120328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stirea-editiei-en"],"article_style_override":"","post-style":"","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2020\/02\/topstory.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/120328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=120328"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/120328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/67562"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=120328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=120328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=120328"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=120328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}