Šehanović: Liburnia Riviera Hotels expect 160 million kuna profit before taxation

The CEO of Liburnia Riviera Hotels (LRH), Igor Šehanović, stated on Tuesday that the LRH Group has doubled its revenue from 2010 to 2015 and that this year approximately 400 million kuna in revenue and around 160 million kuna in profit before taxation are expected.

Presenting the business results of the LRH Group from 2010 to 2015 at the meeting of the Economic Council of the Croatian Chamber of Commerce in the County Chamber of Rijeka on Tuesday, Šehanović said that LRH was privatized in 2010, and after that, management was formed, and the company underwent reorganization, restructuring, and development. The company had less than 200 million kuna in revenue in 2010, and this year it will have revenue of around 400 million kuna, he said, emphasizing that the financial result in 2010 was negative, and that the LRH Group will have around 160 million kuna in profit before taxation in 2015.

– In the meantime, we have invested more than 600 million kuna in development in the Liburnia area and in the acquisition of hotels in Cavtat and Portorož, he said.

When asked on what basis the revenues were doubled, Šehanović said that this was achieved due to the development process, that investments were made in the reconstruction of facilities on the Opatija Riviera, as well as in acquisitions, i.e., increasing capacity with 620 rooms in Cavtat and 460 rooms in Portorož. Speaking about cost reduction, Šehanović said that costs have been reduced in all areas, including energy, salaries, direct costs, and other variable costs…

Šehanović also stated that there will be no more layoffs and that an increase in the number of jobs is now expected, that LRH plans several investments, and that, for example, the investment in a new hotel in Ičići with 180 rooms is currently being calculated.

LRH recently divided its business into two companies, so LRH Opatija will manage the facilities in the Liburnia area, while LRH Hotels Cavtat will manage those in Cavtat and Portorož. When asked about the sale of four Liburnian villas and other properties owned by LRH, which were offered for sale, Šehanović replied that there are bidders, but he did not want to say more about that deal.