Julius Meinl Living Begins Work on Former Ambasador Hotel in Bucharest

Julius Meinl Living, part of the Julius Group, which bought the Ambasador Hotel in Bucharest, has had a building permit since the beginning of this year, and in April signed the contract with a general contractor. Renovation work will begin soon.

 

The building of the former Ambasador Hotel on Magheru Boulevard in the capital, will reopen in 2028, under the name The Julius Bucharest.

 

The Julius Bucharest Hotel will have 160 rooms and suites. The hotel will have a lobby bar on the ground floor and a restaurant on the 11th floor with a capacity of over 100 guests. There will also be meeting rooms, a gym, and a boutique store.

 

The gross development value of The Julius Bucharest is EUR 66.3 million.

 

Source: economica.net

Crosspoint Real Estate Report: Romania has fewer tourists, but hotels are making more money

Romania’s hotel industry recorded a 16% increase in turnover in 2025, reaching EUR 2.2 billion, according to Crosspoint’s estimates, but the drivers behind this growth signal a structural shift. The advance is driven primarily by rate increases and the upscale segment, while overall demand has shown the first signs of softening.

 

According to the annual Romanian hotel market report by Crosspoint Real Estate the International Associate of Savills in Romania, the total number of tourists fell to 14.3 million (-2% compared to 2024), and the average occupancy rate across all accommodation units declined from 30.4% to 28.8%. At the same time, operators increased their rates. In the 4- and 5-star segment, ADR reached EUR 94.68 (+8.5%), while RevPAR climbed 12.2% to EUR 61.33.

 

The result is a market in which revenues grow in the absence of volume growth, pointing to a structural repositioning of the industry towards value-driven growth.

 

“The hotel market is entering a phase where performance is no longer determined by demand growth, but by the ability to sustain rates and attract premium segments. It is a sign of maturity, but also of vulnerability in the face of potential demand declines”, said Ilinca Timofte, Head of Research at Crosspoint Real Estate.

 

Revenue performance comes against a backdrop of rapidly rising costs. In 2025, the sector absorbed the increase in VAT on restaurants to 21%, a higher minimum wage, higher excise duties and average inflation of 6.8%. Looking ahead, the 2026 outlook remains influenced by external factors, including energy price volatility and risks associated with geopolitical tensions in the Middle East.

 

Alezzi Group sells concrete division to Heidelberg Materials Romania

Alezzi Group has completed the sale of its concrete production division to Heidelberg Materials Romania, part of the global Heidelberg Materials group.

The concrete division was originally established to support Alezzi Group’s own development projects by providing in-house production and quality control capabilities. Over time, the operation expanded into a standalone business focused on concrete production and related services.

According to the company, the decision to sell the division reflects a broader strategy to concentrate resources on its core real estate development activities. The transaction also marks a shift away from industrial operations as the group continues to expand its property portfolio.

A representative of Alezzi Group said the company had developed the business with a focus on operational discipline and quality standards, adding that the acquisition by Heidelberg Materials represents recognition of the division’s performance and operational structure.

The transaction further strengthens Heidelberg Materials Romania’s position in the Romanian construction materials market, while allowing Alezzi Group to focus more closely on residential and real estate development projects.

CEDER 2026 in review: From Gimmicks to Results: Mixed-Use Performance

At CEDER 2026, the specialists invited to take part in the first panel, entitled “Office I: Building Bankable Urban Assets: Transit, Mixed-Use Performance and the New Financing Reality”, discussed how, in the current real estate landscape, the mixed-use, “one-stop-shop” concept has evolved from a branding trend into a metric of performance. They highlighted that the success of integrated environments—where residential, office, and retail coexist—now rests on their ability to function as high-performing operational tools.

 

Doron Klein, Group Deputy CEO of AFI and CEO of AFI Romania, describes the core value of mixed-use as “the fact that you can create and (…) hold and operate those three, maybe in some cases four elements within one location, (…) somewhere where people can live, can work and can leisure in the same campus, in the same area, saving their commuting time, (…) that’s the name of the game”. According to him, this proximity is more than a convenience; it is a fundamental performance factor that ensures a project “works” for both stakeholders and users. Klein asserts that he wholeheartedly believes in the mixed-use concept: “I absolutely believe that if you can offer [a] one-stop-shop where people can do everything in a very short distance, they will come”.

 

A critical shift in the market is the move away from “marketing exercises” in favour of tangible performance. Maria Jianu, Leasing Director at Speedwell, argues that developers must redefine their luxury offerings, moving toward “premium as performance”: “Tenants are no longer willing to pay for things that help us in our branding but do not solve a problem (…) in their daily lives. So, it’s amazing that you have this greenery, it’s amazing you have these amenities. How do they work for us?” For a mixed-use project to perform, developers must meticulously think “about the technical specifications, about the flows, about the density, the catchment areas”, to ensure all components work together seamlessly.

 

The performance of an asset is also tied to its technical resilience and predictability. Adinel Tudor, CEO of EVO Properties, points out that certifications must translate into “actual savings for the tenants”. Utilizing modern technologies, such as all-electric systems that avoid natural gas, allows developers to keep operational costs low. This technical efficiency creates the “predictability of revenues” that lenders demand, which Tudor claims “beats everything” in the current market.

 

Andreea Cotigă, Head of Leasing Office at CPI Romania, spoke of a “flight to quality or flight to experience over space.” Ultimately, the long-term performance of a project is judged by its ability to “foster functional communities” and, if a project “is not able to offer that kind of ecosystem or environment, then rarely that inquiry turns into a signed lease”. As a conclusion, she emphasizes: “I think in a world that is more and more digitalized and where unfortunately we have the tendency to become (…) more solitary, the spaces and the projects that will manage to bring people together by offering quality services (…) and superior experiences will have a greater value and a greater retention”.

PIP Leases about 1,000 sqm Office Spaces in Hermes Business Campus

The American giant Protective Industrial Products (PIP) has rented about 1,000 square meters of offices for its headquarters in Romania, in the Hermes Business Campus complex, in Pipera.

 

The new PIP Romania headquarters in Hermes Business Campus has over 100 workstations. Large corporations practice an office ration per employee of 10-12 square meters. The Hermes Business Campus complex is in the portfolio of the Hungarian investment fund Adventum.

 

The employees in the new PIP Romania headquarters were moved from the building across the street, called BOC, where Honeywell has rented an area of ​​over 24,000 square meters. Protective Industrial Products, in the portfolio of the investment fund Odyssey Investment Partners, bought the personal protective equipment division belonging to Honeywell last spring.

 

Source: Profit.ro

OMV Petrom Authorizes a Plot of Land in Bucharest for 14-storey Blocks

OMV Petrom is taking steps to authorize a 3.5 ha plot of land in Bucharest, suitable for the construction of apartments. OMV Petrom owns a 35,644 square meter plot of land on Şoseaua Vergului in Bucharest, which it has been trying to sell since 2009.

 

If last year the company obtained an urban planning certificate for information, to see what can be built on it, now OMV Petrom has an urban planning certificate for the construction of a residential complex, with 14-story high-rise buildings.

 

The plot is located near the Esplanada shopping center and the Malaxa hospital. Right next to this plot, Granitul SA, controlled by businessman Ion Țiriac, owns a plot of land with real estate potential.

 

Source: economica.net

Hercesa Invests EUR 30 million in a High-End project in Sector 3

Spanish developer Hercesa, present on the Romanian market since 2004, is launching its third residential project in Bucharest at the end of this year – a high-end development of 24 units in sector 3, in the Mircea Vodă area, with an investment estimated at EUR 30 million.

 

Romania represents around 15% of the Hercesa group’s business, the second largest market after Spain, its country of origin.

 

“All the high-end and luxury projects have been developed in the northern part of the city. We believe that there is a market for premium projects in the central area as well, and this is the reason why we decided to target this development towards a more exclusive segment,” said Alejandro Solano, CEO of Hercesa International.

The launch is scheduled for the end of the year. The financing scheme follows the group’s classic formula – 35-40% equity, the rest bank financing.

 

DS Smith Modernizes Timisoara Factory with EUR 10.5 mln Investment

Packaging manufacturer DS Smith announces investments of over EUR 14 million in its operations in Romania. The largest investment, EUR 10.5 million, will be made at the Timisoara factory by the first quarter of 2027. The company says the investments will allow for reduced delivery times and the development of new types of packaging, by using technologies based on real-time quality control and streamlining production processes.

 

In parallel, the Ghimbav factory will benefit from additional investments of EUR 3.6 million in 2026 to modernize the infrastructure and improve production equipment. The project comes after a 13 million euro investment started in 2023 in the same unit.

 

“In 2026, DS Smith Packaging Romania continues to accelerate its investments and business transformation, with a clear growth direction and ambitious objectives for the coming period. Despite a challenging economic context, we remain focused on development, competitiveness and concrete responses to the ever-changing needs of our customers,” says Christian Schmidt, Cluster Director, DS Smith Packaging Romania.

North Bucharest Investments Announces the Launch of northbucharest.ro

North Bucharest Investments announces the launch of northbucharest.ro and the “North Bucharest – Real Estate” mobile app, now available on the App Store and Google Play.

 

The new platform brings together over 100 residential developments and more than 1,400 available properties within a single intelligent ecosystem, with a strong focus on completed, move-in-ready homes.  Artificial intelligence plays a central role in the platform’s architecture, delivering personalized recommendations in real time based on user preferences and search behavior.

 

“The launch of this digital ecosystem represents our transition from traditional brokerage to a technology-driven model where digital innovation plays a central role in the purchasing journey. This is no longer just about accessing listings — it is about creating an experience where AI significantly reduces search time while increasing the relevance of available options.

 

Today’s consumers expect clarity, speed and control. They want to identify the right property quickly, without spending hours navigating through hundreds of listings. Our platform delivers exactly that” said Vlad Musteață, CEO & Founder of North Bucharest Investments.

 

Promenada Mall Expansion will Include a 4-star hotel

The expansion of Promenada Mall in northern Bucharest is evolving into a major mixed-use project that will integrate a 4-star hotel and office spaces, following an investment of approximately EUR 282 million.

 

The future 11-story building will house a business hotel with approximately 200 rooms on the 5th, 6th, and 7th floors, operated by an established international chain. Office spaces will occupy the top four floors, covering about 14,000 sqm. The first four levels will be dedicated to the expansion of the existing shopping center, while the infrastructure will include the deepest underground parking in Romania, with 1,600 spaces arranged across seven levels.

 

Finalization of the works is estimated for the end of next year, at which point the value of the entire complex could reach nearly EUR 500 million.

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