Real estate investor-developer Hagag Development Europe consolidated its operations in Romania by expanding its presence to the hospitality segment. The company has selected Radisson Hotel Group as operator for its first hotel development in Bucharest, to open under the Radisson RED brand, and started the permitting procedure to revamp and repurpose its property on 5-7 Vasile Lascar Street, in central Bucharest.
This project will be developed following an over €13 million investment, and involves the transformation of an office building dating back to the 1940s. Historically serving as the offices of the Institute of Hydroelectric Studies, the old office maze will be fully renovated and redesigned to provide 104 guest rooms in the historic Old Town area, offering guests a unique blend of modern amenities and historical charm.
“We have a lot of trust in the local hotel market and we believe that there is no better partner than Radisson Hotel Group to support our vision of transforming H Vasile Lascar into a lifestyle destination that will not only enhance our property’s value, but will revive one of Bucharest’s most elegant neighbourhoods. Our ambition is to offer stylish hotels with modern design and meaningful experiences, at a fair price, and we are delighted to see our properties being associated with one of the largest international hotel chains,” said Yitzhak Hagag, Co-founder and Chairman of Hagag Development Europe.
The new Radisson RED Bucharest Old Town will be the first Radisson RED property in Romania and in Bucharest, which the Group has identified as a key city for growth.
“Our recent developments in Romania demonstrate the increasing demand for top-tier hospitality experiences. With the introduction of Radisson RED Bucharest Old Town, we are proud to bring a dynamic and innovative hotel brand to Romania that caters to modern travellers seeking a blend of contemporary design and vibrant social spaces. This addition marks the entry of our fourth brand in Romania, solidifying our presence,” said David Jenkins, Vice President Business Development at Radisson Hotel Group.
Win Advisors, founded by Cătălina Roșu and Alina Vlădulescu, advised Hagag Development Europe in securing the debut of Radisson RED in Romania. From operator selection and financial modeling to deal negotiation with Radisson Hotel Group, their strategic input was instrumental in shaping this flagship lifestyle project in central Bucharest.
“We are proud to have worked closely with Hagag Development Europe in shaping this remarkable project. Radisson RED Bucharest Old Town highlights our commitment and ability to bring our clients’ ambitious vision to life, marking a milestone for the entire city,” said Cătălina Roșu, Co-founder of Win Advisors.
Zamfirescu Racoți Vasile & Partners (ZRVP) provided end-to-end legal support throughout the entire transaction.
“It is always a pleasure to negotiate in a way that strengthens our clients’ contractual positions while aligning the interests of all parties to build solid, long-term partnerships. Hagag Development Europe is making a strategic move into the hospitality sector, showcasing its ability to continuously optimise its business model and embrace emerging industries. We are proud to have contributed to their first hotel investment in Bucharest,” said Marina Crenguța Florea, Partner at ZRVP.
