New Radisson Blu Aurum Hotel in Brașov targets EUR 6.5 mln turnover in 2023

The Radisson Blu Aurum Hotel in the mountain city of Brașov, which opened in October this year, is counting on a turnover of EUR 6.5 million and an average occupancy rate of at least 65% in 2023. Its occupancy rate stood at 70% in the first month after opening, and most of the guests were Romanians (80%), but also tourists from the United States, Great Britain, the Middle East, or Germany.

Radisson Blu Aurum Brașov opened in October after an investment of EUR 17 million on the site of the former Palatul Telefoanelor building. The project, which included the rehabilitation of the old building erected in the 1930s, was developed by local entrepreneurs Ramona and Răzvan Neamțu, owners of the Ra-Ra Group.

The construction work lasted 34 months, being hampered by the complexity of the project and the pandemic and socio-economic context. Owners expect to recover the investment in about 10 years.

The wall of the old fortress discovered in the basement has been preserved and is also visible from the outside through a glass ceiling. The entire design of the hotel combines visual elements specific to the citadel and the goldsmiths' guild, which inspired the name and concept of Radisson Blu Aurum.

The hotel has 110 rooms, a tasting room that houses the 400-year-old fragment of the old fortress wall of Brașov, an executive lounge, a conference room with a capacity of 170 people, a sky bar, and wellness facilities.

"We wanted to have a local footprint as visible as possible, to bring details with historical value and to work with as many Romanian suppliers as possible so that our guests discover not only a hotel with extraordinary design and services but also a part of Brașov - past and present. Almost 80% of what Radisson Blu Aurum means is the result of the work of some companies in our area, which means that more than EUR 10 million that we have invested have already returned to the local economy," said Răzvan Neamțu, owner of Radisson Blu Aurum Brașov.

"In addition, the impact of a 5-star hotel in the community is very large in the long term because it brings valuable business to the community. The tourist who pays EUR 150-200 per night's accommodation will spend an approximately equal amount on other services outside the hotel. So I'm happy to think that next year our investment will bring not only EUR 6.5 million in turnover for the hotel, but even more for the local business environment," he added.

In the first month of operation, 80% of the Radisson Blu Aurum Brașov guests were Romanians. For the first year, the owners expect an average occupancy rate of 65-70% and an equal split between Romanian and foreign guests. Accommodation prices start at EUR 125/night, but the annual average will be EUR 165/night.