The project that will be located in city center, near Athenee Palace Hilton will open its doors in 2012, and will boast a luxury shopping area. The hotel will have 120 rooms.

“We have already concluded an agreement with an overseas five-star hotel chain, and the construction works will begin in April and will last nearly 2 years”, said Edward Popescu, managing director Monte Carlo Palace.

The current economic condition is a real opportunity for developers, he said, as the construction costs fell markedly over the past 12 months. Edward Popescu says costs have declined by around 25% from 2007, for example, when he worked for Monte Carlo Palace project.

The design of the project has been completed in 2008 and the investment totaled €18 million. The developer of the project is Marvel Group, held by Christian Popescu who currently resides in Monaco, and runs businesses in hotel industry, furniture and luxury properties.

By early 2008, 70% of the 111 apartments have been sold, and 8 apartments in the year of crisis. The remaining apartments are rented for €900-€1,500 a month.

Monte Carlo Palace sits on 5,000 sqm in northern Bucharest, in the near vicinity of Herastrau Park. The complex includes studio apartments, 2,3, 4-room apartments and 3 penthouses with 150 – 250sqm and terraces of 120 sqm and 180 sqm.

Which hotel operators will manage the hotel

Although over the past two years Hyatt is reportedly considering opening business in the country, the company said no contract had been signed yet. “Romania is an interesting country, but so far we haven’t signed any contract here. What we know for sure is that the first Hyatt hotel will be opened in Bucharest”, said the managing director of Hyatt Europe, Africa and Middle East.

Sheraton, another international hotel operator not yet present in the local market has identified the opportunities Romanian hotel market offers, and will open its first hotel in Cluj-Napoca.

Sigma Towers, has signed a partnership with international hotel operator that will open in Romania “Sheraton Cluj” hotel.

Luxury chain Kempinski has confirmed its intentions to open a luxury hotel in Romania, and a mountain resort. Kempinski operates some of the most luxurious hotels in Budapest, Sofia, Istanbul, Moscow.