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Romanian branded hotels: are they worth the effort?

Author

Listed:
  • Cornelia POP

    (Babes-Bolyai University Cluj-Napoca, Romania)

  • Monica-Maria COROS

    (Babes-Bolyai University Cluj-Napoca, Romania)

  • Maria-Andrada GEORGESCU

    (National University of Political Studies and Public Administration, Bucharest, Romania)

  • Maria BONEA

    (Babes-Bolyai University Cluj-Napoca, Romania)

Abstract

The presence of branded hotels in Romania remains relatively modest after two decades since the first Sofitel (Accor Hotels) entered the market. Thus, the number of branded hotels increased since 2005 when they were first investigated. The present study investigates the RevPAR of the Romanian hotels that have joined an international brand, either hard (franchising and management contracts) or soft (affiliation), and the hotel operators’ net financial results over a five year period 2012-2016. The results of this exploratory study reveal that the most notorious brands operating in Romania are also those generating the highest RevPAR. Further, the results show that operating a brand outside Bucharest (mainly a hard brand) proves to generate constantly net profit for most of the respective hotel operators, despite a RevPAR below the European average. This finding suggests that the brand notoriety generates an increased occupancy rate. The results indirectly point out that most of the branded hotels’ operators seem to struggle on the crowded Bucharest hotel market enhancing the idea of internal inefficiencies. Given the structure of the Romanian hotel industry, the partnership with an international brand seems to be worth the effort mainly if the brand is appropriately chosen taking into consideration the hotel location and size.

Suggested Citation

  • Cornelia POP & Monica-Maria COROS & Maria-Andrada GEORGESCU & Maria BONEA, 2018. "Romanian branded hotels: are they worth the effort?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(617), W), pages 39-50, Winter.
    • Handle: RePEc:agr:journl:v:4(617):y:2018:i:4(617):p:39-50
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    References listed on IDEAS

    as
    1. Silva, Rosario & Gerwe, Oksana & Becerra, Manuel, 2017. "Corporate brand and hotel performance: A resource-based perspective," Journal of Business Research, Elsevier, vol. 79(C), pages 23-30.
    2. Monica Maria Coros & Adina Letitia Negrusa, 2014. "Analysis of Romania’s and Transylvania’s Tourist Supply Development and Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(Special 8), pages 1312-1312, August.
    3. Smaranda Cosma & Cristina Fleseriu & Marius Bota, 2014. "Hotel Chain’s Strategic Options to Penetrate the Romanian Market," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(Special 8), pages 1352-1352, August.
    4. Cornelia Pop, 2014. "The Current Profile Of Romanian Hotel Industry: Does It Enhance The Attractiveness Of Romania As A Tourist Destination?," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    5. Ioana Cristiana PATRICHI, 2014. "Bucharest Hotel Market In The European Context," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 14(2(20)), pages 48-57, December.
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