Top hotel owner buys the former pearl of the Romanian seaside for EUR 10 million

The Phoenicia group, owned by Mohammad Murad, one of the biggest hotel owners in Romania, has acquired the Amfiteatru-Panoramic-Belvedere hotel complex located in the Black Sea resort Olimp. The acquisition price amounted to EUR 10 million, but Murad plans to invest another EUR 15 million to refurbish the hotel complex, according to local Profit.ro. This is the largest transaction in Romania’s tourism this year, and was confirmed both by the new owner Mohammad Murad, as well as by Josef Goschy, the former owner of the hotels. The three hotels of the Amfiteatru-Panoramic-Belvedere complex, which were known as the pearl of the Romanian seaside during communism, are located on a 6-hectare plot with direct access to the beach. The three hotels have 750 rooms rated at two and three stars. One of the hotels has been closed for revamping while the other two have been operational this summer. Josef Goschy bought the Amfiteatru-Panoramic-Belvedere complex in Olimp at the beginning of 2008. He paid EUR 22.2 million to the Authority for Managing the State’s Assets (AVAS). Another EUR 8 million were then paid by the other shareholder, the investment fund SIF Transilvania. Phoenicia now plans to bring the hotel complex to its former glory. Mohammad Murad plans to complete the refurbishment by June 1, 2018. The complex will be reclassified to four stars at the end of this process. The investment will be secured by the local subsidiary of a U.S. bank whereas the acquisition was made with the help of the local lender Banca Transilvania, Murad told Profit.ro. Olimp is one of the most famous resorts at the Romanian seaside. It is located 7 km north of Mangalia. Together with Neptun, Jupiter, and Aurora, Olimp was one of the luxury seaside resorts in Communist Romania, visited by the nomenclature and international tourists. These resorts were developed between 1967 and 1973, but the lack of investments and the poor planning in the past 27 years have led to their decay. Other resorts, such as Mamaia, Eforie Nord, and Vama Veche are more popular these days. Mohammad Murad’s Phoenicia group has been very active in investing in the Romanian seaside tourism. The group owns the Perla and Majestic hotels in Mamaia and the Majestic hotels in Olimp and Jupiter, as well as the Phoenicia Luxury Hotel and Phoenicia Holiday Resort apart hotel in Navodari north of Mamaia. In April this year, Mohammad Murad announced his plan to build a five-star hotel in Navodari. Murad also owns the Phoenicia Grand Hotel, Phoenicia Comfort Hotel, Phoenicia Express Hotel, and Phoenicia Apartments Baneasa, all in or near Bucharest. Mohammad Murad is a Romanian businessman of Lebanese origin. He and his two brothers Hassan and Ahmad also own a construction company and several food processing factories.