Accommodation contracts signed with some of the biggest companies in Romania helped secure half of the turnover of Bucharest's five-star Athenee Palace Hilton hotel, namely around 10m euros, taking into consideration last year's turnover.
"We have signed around 200 such contracts with firms such as Petrom, Coca-Cola and Enel (the Italian energy group that acquired majority stakes in Electrica Muntenia Sud, Electrica Banat and Electrica Dobrogea), to provide accommodation for these companies' employees over periods of time ranging from several months to more than a year," says Friedrich Niemann, general manager of the Athenee Palace Hilton - a hotel included in the portfolio of the Ana Hotels company, controlled by businessman George Copos.
Niemann refused to specify the annual occupancy rate regarding the contracts for reasons of confidentiality.
The companies signing this type of contract with the Hilton often include a significant number of expats within their business structure, or wish to relocate a large number of employees to run operations in Bucharest. These contracts can also be signed for company employees staying in Bucharest for training courses over a long period of time.
The Hilton last year generated a turnover worth 20.2m euros and net income of 7.5m euros.
"The year 2007 will be even stronger than last year, which was considered Hilton's best in Romania so far. We expect our turnover to increase by 10% in 2007, particularly because of the growth in the business travel sector. Regarding the profit margin, I believe it will remain at a similar level to last year's, because we have to take into account certain expenses, such a energy, which are currently experiencing rapid growth rates," added Niemann.
Hilton's general manager specified that 56% of the turnover was generated from hotel rooms, 38% from catering service
