Debrecen spa company plans Ft 4 bln hotel

Hotels

Hotel and spa company Debreceni Gyógyfürdő Kft, owned by the local council of Debrecen, northeast Hungary, plans to build a Ft 3.5 billion-Ft 4 billion hotel next year, managing director Lajos Fazekas said on Thursday.

Financing for the four-star hotel has not been decided on yet, Fazekas said. Debreceni Gyógyfürdő operates a water park and two hotels in Debrecen. The water park, opened in June 2003, generated revenue of Ft 378 million in 2005, attracting more than 500,000 visitors. The company's Wellness Hotel boasted an occupancy rate of 78% in January-August this year, including a rate of 88% in the summer months. Debreceni Gyógyfürdő’s other hotel, for which it was recently awarded a 20-year operating contract, is expected to close 2006 with an occupancy rate of 40%, but this is expected to reach 50% in 2007 and 60%-65% later on. The company targets operating profit to account for slightly more than one-quarter of revenue after the hotel's third year of operation. The 96-room hotel, which is suitable for holding conferences, was built for Ft 2.4 billion by general contractor Keviép Kft.
Debreceni Gyógyfürdő had profits of Ft 251 million on revenue of Ft 1.6 billion in 2005, up Ft 100 million and Ft 200 million, respectively, from a year earlier. The company targets a 15% revenue rise in 2006.

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