Hagag negotiates with famous hotel chain to operate its future hotel in Bucharest

Real estate developer Hagag Development Europe, is negotiating with an international hotel chain an agreement to operate the former headquarters of the Institute for Hydropower Studies and Design (ISPH) in Bucharest, after its transformation into a hotel, according to market sources.

In 2022, Hagag Development Europe purchased the office building on Vasile Lascăr Street 5-7 for around EUR 3 million with the intention of transforming it into a modern business center with approximately 5,000 square meters of leasable space. However, Hagag’s current plan is to transform the building into a hotel. In this regard, the developer is working on obtaining a building permit necessary to transform the property into a hotel and, at the same time, is negotiating an agreement with a hotel chain.

The building has 6 floors, covers a land area of ​​approximately 1,000 square meters and has a built area of ​​over 6,000 square meters, of which approximately 800 square meters are in the basement area.

When the time for issuing the building permit approaches, Hagag will decide how to maximize the value of the property: either by selling it or by continuing to invest in the construction of the hotel, with the possibility of attracting a partner.

If the ISPH project advances, this could be Hagag's first investment in the Bucharest hotel market.

Source: Profit.ro