4 and 5-star hotels in Sofia boosted their revenues for 2017 with over 15%.
High-end hotels in Sofia kept following the positive trend and improving their performance. The average occupancy in 2017 reached 50%, recording an increase of 5% compared to the previous year. The total number of foreign visitors, overnight in Sofia recorded an increase, reaching 575,000 in 2017 – with 67,000 more than 2016. The annual income from overnights in the capital grew to EUR 62.1 million in 2017, compared to EUR 53.9 million in 2016.
The main factor for substantial growth is the increasing number of low-cost flights to Sofia, as well as the increased number of corporate business trips. A proof for the positive trend in the hotel market in the Bulgarian capital is the fact that several large hotels are currently under construction and which completion is planned to be by the end of 2020 – such hotels are “Hyatt” situated at “Vasil Levski” Monument and offering 190 rooms and “Mariott Hotel” located at “Macedonia Square” with 232 rooms.
The high-end luxury hotels on the Black Sea Coast also experienced revenue rise in 2017, reaching EUR 177.3 million in Bourgas region and EUR 124.9 million in Varna region, as a result of the highest prices. The average occupancy in Bourgas region during the active season was 63% when in Varna was 53%.
In parallel with the high investment activity on the property market in 2017, the activity in the hotel segment marked a high level for one more year. Bulgarian investors dominated the market as the volume of investment deals with hotel exceeded EUR 40 million.
According to MBL, luxury hotels operating under some of the biggest world hotel brands, offering excellent location and additional facilities will continue being successful. The high-end hotels are in a better market position to respond quickly to market changes in terms of technology and innovations. Although the high pricing policy, 4 and 5-star hotels will continue dominating and recording growth in their occupancy and income, due to the fact they are more recognizable, offer more security, provide extraordinary services and lavish accommodation.
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