Mr. Boyadzhiev, what is the state of the hotel sector at the moment and how would you evaluate it in perspective? In the last few years, the hotel industry has achieved very good results with the main driver in this direction being the growth of foreign tourist arrivals and the improved quality of services in the sector. The positive trend is supported by the improved macroeconomic climate in the country as well as by the Bulgarian Presidency of the Council of the EU. The good results are most evident in the BNB (Bulgarian National Bank) data, according to which the revenue from international tourism in the first quarter of the year has reached nearly 400 million euro. Along with the country’s excellent performance in the tourism sector, cheap flights to and from Sofia have created an interesting phenomenon – cultural tourism in the urban environment. The city attracts more and more people from all over the world. Sofia guests are most often citizens of other European countries, but visitors from Asian countries come too. The dynamics in the sector have led to the need of new projects and serious renovation of the existing hotel facilities. I expect the trend for the development of the hotel industry to keep its gradual increase which will make the business more profitable and will lead to more international presence. Does the presence of recognized international brands influence the hotel market in Bulgaria and to what extent? The entry of some of the largest hotel brands in Bulgaria such as InterContinental is important for customer satisfaction and attracting more solvent tourists. This has a positive impact on the image of the country and facilitates Bulgaria's recognition as an attractive destination. Tourists’ expectations for better value of services are exactly what the world's hotel brands rely on. Our company has many years of experience in attracting international brands. The investment portfolio of Galaxy Investment Group over the years includes hotels operated under the name of well-known brands among which are the city hotels InterContinental Sofia, Hilton Sofia and Radisson Blu as well as the holiday hotel Barceló Royal Beach in Sunny Beach resort. These are high class assets with outstanding potential located in a dynamically developing hotel market. How would you summarize the trends in modern city hotels? I can confidently say that the hotel business accepts the integration of high technology extremely well. Examples of this are the introduction of smart applications, virtual reception and smart hotel room infrastructure which make the search, booking and service processes more intuitive and user-friendly. On the other hand, the clients themselves are already more informed, have easy access to a large amount of information and are active participants in the hotel services market which favours the functioning of the sector as a whole. Source: The City Magazine

The 5th Annual Meeting of the National Tourism Board took place in the InterContinental Sofia hotel on 12 June, 2018. During the discussions at the event it become clear that international hotel operators explore the opportunities for entering the Bulgarian market.  According to Konstantin Boyadzhiev, CEO of Galaxy Investment Group and member of the Board of Directors of National Tourism Board, the presence of international hotel companies improves the quality of services, attracts solvent clients and positively affects the image of Bulgaria.  "Our company has many years of experience in collaboration with global hotel brands, among which are the newly opened InterContinental Sofia, Hilton Sofia and Radisson Blu, as well as the holiday hotel Barceló Royal Beach in Sunny Beach resort.” According to him the last few years, many investors are interested in the hotel segment as one of the most attractive in the real estate market. The participants in the forum united around the idea that the quality of services in the tourism sector is steadily improving and added value to customers is increasing, which results in an increase of overnight stays and profit. All this has a positive effect on the long-term profitability and more investors are seeking to take advantage of the improving performance of the hotel market in Bulgaria. The event was opened by the Minister of Tourism Nikolina Angelkova, who presented the plans for the forthcoming changes in the ordinance for categorization of the accommodation places. During the Annual Meeting were discussed the opportunities for encouraging investments in the sector, the current trends and the development of cultural tourism in the urban areas.

Royal Beach Mall started the season with more than 300 brands and 100% occupation. This year like the years before the mall is expected to be one of the most preferred shopping destination on the Bulgarian Black Sea coast. For the fashion lovers there are new stores - Moda Italia by Caliente, Conté, Lucy Fashion и Bos Fashion. For another year in a row in the shopping center can be found the shops of GEOX, Altinbas, Original Marines, U.S. Polo Assn., DJOFRA, Marani, Za-Za Underwear, LIU.JO, Multi Brand VIP Store, representing the brands Versace Jeans, Love Moschino, KENZO, Fracomina and many others. Rozini Sportswear, Sportal M & Bogner, O`Neill and Flair had prepared up-to-date sportswear collections. Tourists who, despite having a quality vacation, prefer to come back with something practical from their holiday can visit the store of Samsonite & Petek 1855 that offers leather goods and a variety of ladies' and men's bags, wallets and belts. You can also get comfortable suitcase or fashion accessory from Paula Venti Store. Bedding & textiles can be found at the stores Roxyma Dream and Textura Barcelona. Thanks to the full range of Rosa Impex, Refan and Bioluxe cosmetic products the shopping center’s clients can find the right care for their hair and body. In Paradox perfumery the customers will immerse themselves in the splendor of fragrances. The trade mix in Royal Beach Mall is refined to offer something for each customer. While parents are relaxing with treatments and spa therapies at Royal Beach Spa the youngest guests of the mall can be entertained by the animators of the children’s center Kid’s Paradise. In the themed restaurants and pubs in the shopping center you will be able to enjoy a variety of tastes. Royal Beach Mall is part of the 5-star hotel Barceló Royal Beach, owned by Galaxy Investment Group. The Mall is located in the heart of Sunny Beach, just 50 m from the beach.

Galaxy Investment Group participated in the Annual Conference “Building Innovation Forum Series - Residential”, which was held on 18.05.2018. In a discussion on the topic “Residential market 2018: Search, offering and prices” were discussed various topics related to the infrastructure, new projects and trends, integration of the technologies and creation of quality living environment.   Some of the main factors, influencing the purchase of a dwelling were also discussed: payment method, building time for residential projects under construction, high-end construction, controlled access, infrastructure and availability of parking spaces. Discussions have made it clear that clients are increasingly looking for environment that creates a feeling of life in the nature. Areas with schools, kindergartens and sports facilities nearby are preferred. As a good example in Plovdiv was presented Royal Garden Residential Park, which is situated in quarter with entirely new and modern infrastructure. Stefan Karpuzov, Investment Manager of Galaxy Investment Group, presented the advantages of the project, among which are the spacious apartments with convenient distribution, excellent lighting, and the straight regular forms of the premises, which is extremely important in realization of interior design. Excellent location of the project, close proximity to green areas and favorable living condition can offer a pleasant and relaxing atmosphere for every member of the family. Royal Garden Residential Park is located only 10 minutes from the Rowing canal, in the greenest and preferred neighborhood of Plovdiv – “Recreation and Culture”. Just a few months after the start of the construction Galaxy Investment Group reporter significant interest in the complex. 

Mr. Boyadzhiev, what are the current trends on the real estate market? The past year, 2017, will be remembered for the unprecedented growth of the real estate market. The investments in this field exceeded EUR 1 billion, thus making it the highest value for the last 10 years. For the first time in several years, the main capital has been coming mostly from large foreign investors, as 71% of the total volume of transactions has been realized from the South-African investment funds. Another example of this was also the yet another large-scale deal concluded just days ago by the South-African Investment Fund NEPI. The company acquired the largest free terrain of 29 dka in Downtown Plovdiv, which used to be a part of the portfolio of “Galaxy Investment Group”. You have been a part of the National Board of Tourism for a short time and you have observed directly the condition of the hotel market in the country. How would you assess it? According to data by the BNB for the last year the international tourism revenue amounted to approximately BGN 6.9 billion, i.e. about 10% more as compared to the year of 2016. Of course, we see the resulting direct impact on the hotel business, where the national statistics has also reported a growth, thus raising the necessity of realization of new projects and upgrade of the existing hotel base. All of the above factors make me think that this business field will keep developing until finally resulting in the entry of more international participants into the market. Does the presence of recognized international brands impact the hotel market in Bulgaria? The market entry of recognized international hotel chains has very important for adding value to the offered product and for improving the level of customer satisfaction. In view of the above, our company is one of the pioneers, as the investment portfolio of “Galaxy Investment Group” is orientated mainly towards a high class of assets, a part of which is also InterContinental Sofia. Following its large-scale reconstruction the new five-star hotel has 194 luxury rooms and a multifunctional conference center. Some of the other brands included into our portfolio are Hilton Sofia, as well as the Holiday Hotel Barceló Royal Beach. The presence of such worldwide brands attracts solvent clients and has a positive impact on the image of Bulgaria. Which are the other business fields with a serious potential for growth? In my opinion, the growth of the field of outsourcing, which is one of the main real estate market engines and forms over 3.6% of the country’s GDP. And, despite the fact that the most dynamically developing investment zone is still in Sofia, in recent years there has been strong interest in Plovdiv as well. Along with the available human capital, the reduced operational costs for the companies and its strategic geographic location, the city has become an attractive center for the business. More and more local and foreign companies make serious capital investments in new productions or in the expansion of already existing productions. The increased interest is also evident from the realized deals in “Indistrual Park Markovo”. Its location is of strategic importance for everyone considering an investment in the region. And the presence of an internal road network, electricity and sewerage to be completed by the beginning of this summer provides an opportunity for the quick realization of the production, logistics and commercial projects of the future owners. It is important to note that the overall development of the field, the increase of the number of workplaces, including good salaries, also result in the increase of the number of deals with household properties. My expectations are for a stable growth of sales of properties under construction by the end of the year and for an increased interest of buyers in higher quality projects implemented by recognized investors. That's why “Galaxy Investment Group” has initiated the construction of a new residential park called “Royal Garden” in Plovdiv, aiming at compensating the lack of such projects in the city. Source: Manager Magazine 

A Business breakfast entitled “The Business and the Local Authority” with Stefan Stoyanov, Deputy Mayor of the Municipality of Plovdiv, Dr. Mitko Vasilev, CEO of AHK Bulgarien, and company members of the German-Bulgarian Chamber of Industry and Commerce (AHK Bulgarien) was held last week in Plovdiv. The event filled with plenty of useful information regarding the development of the industry in the region was organized by the German-Bulgarian Chamber of Industry and Commerce in cooperation with Galaxy Investment Group, a member of AHK Bulgarien. The purpose of the Business breakfast was to meet representatives of the business and of the local authority, and to provide an opportunity for a direct, honest and constructive dialogue between both event participants. Various cases were subject to specific discussions, which were directly connected with the interaction between the Municipality of Plovdiv and the regional enterprises. Thus, despite all difficulties faced by the companies their motivation will keep growing within the city of Plovdiv, as it will also remain high in the future. The non-formal event was attended by over 30 representatives of companies members from Plovdiv and the region: EVN, ABB – Rakovski Branch, Yuri Gagarin, PERI Bulgaria, ProCredit Bank, etc. The Business breakfast was opened by Dr. Mitko Vasilev, CEO of AHK Bulgarien, Dr. Mariana Cholakova, a representative of AHK Bulgarien for Plovdiv, the Deputy Mayor of Plovdiv – Mr. Stefan Stoyanov, and Martin Dragoev – Director “Investments and Sales” at Galaxy Investment Group. The Deputy Mayor – Mr. Stefan Stoyanov presented a brief review of the ongoing projects in the Municipality of Plovdiv, as well as of the newest trends in the industry at a local level. According to data of the Municipality the priority focus of the main investments in Plovdiv is on the infrastructure of the city, as it is expected that some of the most important projects are completed this year. A special focus was put on the education and preparation of personnel, on the increase of the number of dual education classes in five vocational high schools in the city. The discussion also focused on several positive trends, namely: the companies reported a tendency towards the return of Bulgarian graduating students from foreign universities back to Bulgaria, and to Plovdiv in particular, as well as of the labour migration from the capital to Plovdiv. The leading factors for this tendency are of various nature, as the local authority pointed out as the most important ones the conditions of living, the improved infrastructure, the mass integration of new methods in early education, culture and entertainment, a project for an international school, etc. The top three of the most actively developing industries in the region, besides the production as the leading one, are also the logistics field and the field of services. Galaxy Investment Group presented the advantages of its project entitled “Industrial Park Markovo”, where there are ongoing construction works of modern infrastructure.