Returns on investments in first-class hotels in Sofia were around 8.5 per cent at the end of 2007, thus outstripping the yields generated by office and retail developments, which ranged between 7.5 and 7.85 per cent, respectively, and equalling returns from logistic space, a recent analysis of CB Richard Ellis consultancy, showed on March 10.

In terms of yields, Sofia ranked second after Moscow, where returns on hotel investments averaged 9.25 per cent, and was the best-performer among the capitals of the countries across Central and Eastern Europe (CEE).

Despite the low occupancy, Moscow’s hotel segment is still very attractive, registering the highest levels of revenues fetched by an available room, an indicator called RevPAR, for 2007. Four and five star hotel rooms in the Russian capital are among the most expensive, with prices reaching 483 dollars a night.

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