Theoretical and Applied Economics
No. 4 / 2018 (617), Winter
Romanian branded hotels: are they worth the effort?
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.
Contents
Origin and continuity in spatial development: The case of Romania
Study of population by domicile and residence. Natural movement and imbalances
Romanian branded hotels: are they worth the effort?
Biracial Asian and white: Demographic and labor market status
Institutionalized social technologies index: A global perspective
Sustainability and efficiency of microfinance institutions in South Asia
A revisited causality analysis of Okun’s Law: The case of Turkey
Causality between foreign direct investments and exports in India
Structural budget balance and fiscal policy stance in Tunisia
Price transmission for natural rubber: India integration with world markets
Tax smoothing hypothesis: The Tunisian case
The importance of efficiency for life insurer profit: A study of Canadian life insurance companies
Does financial sector affect economic development in ASEAN during 2010-2016?
Do remittances really attract foreign direct investments? Evidence from panel cointegration
The effect of credit default swap premiums on developing markets’ economies: The case of exchange rates