According to unofficial data, a total of 134 hotels are operating in the capital city of Sofia, including establismnets such as hostels, apartment-hotels and private houses letting rooms. They are categorized under the current legislation in the country from one to five stars. Apart from the city, there is a considerable base in nearby villages and neighbourhoods, the most of them being near Vitosha and Bankya.
The most expensive and luxurious five-star hotels are a relatively small share – about 8 percent of all. Most were built some time ago, but in recent years have been upgraded – such as Radisson and Sheraton. Others are newly built such as Hilton Sofia and Holiday Inn. Four-star ones account for about 30 percent of all, and the three-star are the most numerous – over 50 percent. The next category of establishments with two stars represent around 10 percent, while relatively few are those with a single star – about 2 percent.
The total number of beds is 11,000, according to statistics, and in January 2012 visitors made nearly 75,000 nights, of which about 50,000 – by foreign nationals and the rest – by Bulgarians. Declared income for hoteliers in the first month of the year amounted to BGN6.5 million. The revenue was generated at an occupancy rate of 20 percent. Obviously, this amount is not sufficient, but winter is traditionally a low season for Sofia hotels.
There is a significant difference in the preferences of Bulgarians and foreigners to the category of places, studies show. Most foreigners – about 70 percent were targeting hotels of 4 and 5 stars. This is explained by the relatively low prices in Bulgaria compared to incomes and the financial power of most of the foreigners. Only 5 percent of visitors from overseas chose to stay at establishments of 1 or 2 stars. Whereas Bulgarians have been almost equal distributed in all three categories – the cheapest, the mid-market ones, and the most expensive and luxurious ones. Such a distribution largely reflects the creditworthiness of local guests, as well as the stratification of the population by income, say experts. According to them, relatively few Bulgarians can afford an expensive hotel stay even if they are on a business trip and the company covers part of their costs.
Of course, the hotels business in Sofia has its strengths. Among them is a steady increase in the number of guests registered over the past three years. Estimates show that after the country joins the Schengen zone, the number of foreigners visiting the capital should increase. It retains its place as economically the most developed city in Bulgaria, housing government institutions, government offices of large companies and this determines the constant flow of people from the countryside especially on business trips.
Preferences of foreigners to local luxury establishments of 4 – and 5-star hotels are clearly shown. However, the supply of such services is not adequate to the demand – most of these objects, regardless of their high class and constant reconstructions were built more than 40 years ago and do not offer enough individuality and personal style.
Prices of Sofia hotels are varied according to category, but with a tendency to increase. With the increasing standard of living in Bulgaria hotel services will become more affordable and sought after, so expectations are for at least 20 percent price increase over the next five years. This trend is supported by the appreciation of consumables – electricity, food, and the future growth of staff wages.
The top among the big unsolved problems for the hotel business in the city is the poor infrastructure in Sofia and around hotels. This does not produce suitable conditions for parking of private cars, and the access to establishments, especially in the central part, is quite handicapped.
The opening of many new hotels on the other hand gives an explanation for the relatively low occupancy rate in general. The average rate – about 54 percent per annum – is not sufficient and gives advantage to those who have good PR and advertising strategies and are successful in attracting both organized and individual guests.
The highest prices per person in a double room in a hotel in the capital vary from BGN310 to BGN450 shows a check of a marketing agency. Double room in a hotel with one, two or three stars can cost from BGN48-52 to BGN120-150 per night. Hoteliers claim that that most often sought after are double rooms for two or three nights, while for longer stays – of over 10 days – operators often offer discounts of 10 to 12 percent per night.
