One of the most recent premium real estate projects developed in Brasov, Montebello Transylvania Resort, is located on a mountain plateau of 2.6 hectares and comprises 47 chalet villas. The market value of the investment amounts to €12.8 million, and the villas are equipped with private facilities such as jacuzzi, barbecue area, gazebo and a spa, conference room, bistro and three parks.
Financed from equity and from the sale of properties to private investors, the complex is being developed by Grand Development, whose shareholders have previously developed the SVN real estate company, the Meta Estate investment fund and other representative real estate projects. CityHost will operate Montebello Transylvania Resort for tourism purposes, with the first units to be operated in October 2023. The entire resort will be fully operational in October 2024.
Surrounded by the Bucegi Mountains and the Carpathians, Montebello is located near important sights and key points. It is less than 30 minutes away from Brasov airport and the city centre, Bran Castle, Poiana Brasov, Dino Park Rasnov and the Libearty Bear Sanctuary at Zarnesti. The uniqueness of the project lies in the location of the complex, which is built in the middle of the forest on the site of a former brick factory that was open until the 1990s. By being converted, the site already benefits from all public utilities.
The development of the complex takes place in a context where the local demand for tourist units in the premium segment far exceeds the supply available at the moment. According to Eurostat data, Romanians are among the EU citizens who invest most in domestic destinations. This preference has been accentuated in the wake of the pandemic, while the opening of Brasov airport and the campaign to attract investment launched by the local authorities will have a major impact on the economic development of the area.
“Hotel properties internationally generate a return on equity of up to 20%. Together with other accommodation units that include property management (serviced properties), they are the real estate asset class with the highest return.“, says Ionuț Nicolescu, founder of Grand Development.
With a small number of 4 and 5-star hotels, Romania has a real investment potential in quality tourism products and services. The current limited supply of hotel units provides investors with a significantly higher level of financial performance compared to mature markets in Southern or Western Europe.
According to data provided in the National Spatial Development Strategy, the occupancy rate in 4-star hotels in Transylvania was 85% in 2022, during the summer and winter seasons. The area is a point of attraction for an increasing number of tourists, including foreigners, with the region often promoted in international publications as a recommended holiday destination.
“The opening of Brasov airport allows us to take advantage of an enormous opportunity. Tourism in Transylvania has multiple image vectors, such as King Charles III for Viscri, along with its fortified churches, the Cantacuzino Castle in Busteni, transformed into the Nevermore Academy in the Addams Family movie, Bran Castle, one of the most attractive international destinations for Halloween, recently rented by billionaires from Elon Musk’s group.“, says Radu Manoliță, CEO of CityHost.
The growing demand for premium accommodation in Brasov is confirmed by the representative of CityHost, the company selected to operate the Montebello Transylvania Resort. The company has achieved an occupancy rate of over 80% for the last two years for its over 60 units. In the last 12 months alone, the apartments in CityHost’s portfolio have been booked over 7,000 nights, with a total of over half a million euros.
In addition to property management solutions, the company’s programs include team building and event offerings for organizations in the off-season, international events for yoga, enduro or snowmobiling, as well as offerings for workation, which has seen significant growth in lifestyle and post-covid tourism.